e 01

Mr. Hasan, FCA is an external auditor of Beximco pharma, one of the leading pharmaceuticals

company in Bangladesh. He receives 40% of its revenue from Beximco pharma. As part of

internal audit, he has completed the valuation part of the PPE of the company in addition to the

external auditing.

Case 02

Mr. Asif is an audit partner at KPMG, Bangladesh. He has completed his BBA and MBA from

the Department of Accounting & Information Systems, University of Dhaka. He has accepted an

audit engagement client X Ltd. where Mr. Baki is the head of accounts. Mr. Baki is also an

alumnus of the Department of Accounting & Information Systems; DU. Mr. Asif has also

accepted Z Ltd. as client that is the close competitor of X Ltd.

For each of the following scenario, identify at least two threats to independence and suggest at

least one safeguard in the work environment.