I) Among the fundamental principles of ethical behaviour for auditors is independence and Competence and due care. Explain the principles of independence and Competence and due care in relation to the ethical behaviour for auditors.(7 marks) II) Each of the following situations involves a possible violation of the Independence Rule of the Code of Professional Conduct for auditors. a) Mwape, a sole practitioner, has provided extensive advisory services to one of its audit client, KDV. Among the advisory services that Mwape has provided are; Interpretation of financial statements, provision of forecasts and other analyses, advising on potential expansion plans, and advising on banking relationships but has not made any management decisions. KDV is a privately held entity. b) Moono auditing and accountancy services, has been asked by his audit client, POPS furnitures , to help implement a new control system. Moono will arrange interviews for POPS s hiring of new personnel and instruct and oversee the training of current entitys personnel. POPS furniture is a privately held company. Moono will make all hiring decisions and supervise employees once they are trained. c) KPMG recently won the audit of Kafue textiles, a large manufacturer of womens clothing. John one of the partners of KPMG had a substantial investment in Kafue textiles prior to bidding on the engagement. In anticipation of winning the engagement, John placed his shares of Kafue textiles in a blind trust, (an arrangement in which the financial holdings of a person in an influential position are placed in the control of a fiduciary in order to avoid a possible conflict of interest) d) BML audit firm and consultancy is auditing Minwood holdings apartments in which the parents of Banda a member of the audit firm own a unit and reside. The unit is material to the parents net worth, and Banda is on the audit team that is participating in the engagement. e) Solo, a sole practitioner, audited auto worlds, financial statements for the year ended December 2017 and was issued stock by the entity as payment of the audit fee. Solo is planning to dispose of the stock before commencing fieldwork planning for the audit of the next years December 2018 financial statements. f) T & T Corporation requires an audit for the current year 2018. However, T & T has not paid Grand Thornton the fees due for tax-related services performed two years ago.In December 2017 .T & T issued Grand Thornton a note for the unpaid fees, and Grand Thornton has proceeded with the audit services for the current year. For each of the above situations Indicate with reasons, whether each situation violates the Code of independence and suggest future safe guards (you may present you answer in the format below)