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GH Mobiles has been an audit client for eight years and Sophie Co has provided audit, taxation and management consultancy advice during this time. The
GH Mobiles has been an audit client for eight years and Sophie Co has provided audit, taxation and management consultancy advice during this time. The client has been satisfied with the services provided, although the taxation fee for the period to 30 June 2020 remains unpaid. Audit personnel available for this year's audit are most of the staff from last year, including Mr. Campbell, an audit partner and Mr. Ron, an audit senior. Mr. Campbell has been the audit partner since GH Mobiles became an audit client. You are aware that Elizabeth Campbell, the daughter of Mr. Campbell, has recently been appointed the financial director at GH Mobiles. To celebrate her new appointment, Elizabeth has suggested taking all of the audit staff out to an expensive restaurant prior to the start of the audit work for this year. Required: a) Explain the situations where an auditor may disclose confidential information about a client. b) Identify and explain the risks to independence arising in carrying out your audit of GH Mobiles for the year ending 31 December, 2020 and suggest ways of mitigating each of the risks you identify 20 marks
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