+ Fit to page CD Page view A' Read aloud Add notes 5 Annual statements for the use of management. 6 Operations of the IRS to determine whether the internal revenue agents are using their time efficiently in conducting audits. QUESTION 3) (30 pts) As an auditor you encounter the following situations in doing the audit of a large sport center. You are not a partner of the CPA firm. 1. The sales manager tells you that there is a substantial discount on new memberships that is limited to long-established customers of the company. Because your firm has been doing the audit for several years, the sales manager has decided that you should also be eligible for the discount. 2. The sport center has an executive lunchroom that is available free only to the managers of the sport center. The accounting managers informs you that you can also eat there any time. ACT 480- Auditing - Online Summer - 2020 Page 23 INDIVIDUAL - Assignment ! 3. You are invited to and attends the company's christmas party. When presents are handed you, are surprised to find your name included. The present has a value of approximately KWD 5. Use the three-step process in the AICPA conceptual framework to assess whether your independence has been impaired. a. Describe how each of the situations might threaten your independence from the sport center. (15 pts, 150 words) b. Assuming no safeguards are in place and you accept the offer or gift in each situation, discuss whether you have violated the rules of conduct. (15 pts, 150 words) QUESTION 4) (14 pts) Provide your own example for the below threats. (200 words) a) Self-interest (7 pts) b) Undue Influence (7 pts) + Fit to page CD Page view A' Read aloud Add notes 5 Annual statements for the use of management. 6 Operations of the IRS to determine whether the internal revenue agents are using their time efficiently in conducting audits. QUESTION 3) (30 pts) As an auditor you encounter the following situations in doing the audit of a large sport center. You are not a partner of the CPA firm. 1. The sales manager tells you that there is a substantial discount on new memberships that is limited to long-established customers of the company. Because your firm has been doing the audit for several years, the sales manager has decided that you should also be eligible for the discount. 2. The sport center has an executive lunchroom that is available free only to the managers of the sport center. The accounting managers informs you that you can also eat there any time. ACT 480- Auditing - Online Summer - 2020 Page 23 INDIVIDUAL - Assignment ! 3. You are invited to and attends the company's christmas party. When presents are handed you, are surprised to find your name included. The present has a value of approximately KWD 5. Use the three-step process in the AICPA conceptual framework to assess whether your independence has been impaired. a. Describe how each of the situations might threaten your independence from the sport center. (15 pts, 150 words) b. Assuming no safeguards are in place and you accept the offer or gift in each situation, discuss whether you have violated the rules of conduct. (15 pts, 150 words) QUESTION 4) (14 pts) Provide your own example for the below threats. (200 words) a) Self-interest (7 pts) b) Undue Influence (7 pts)