I) among the fundamental principles of the ethical behaviour for auditors is independence and competence and due care

Explain the principles independence and competence and due care in relation to the ethical behaviour for auditors

II) Each of the following situation involves a possible violation of independence rule of the code of Professional Conduct for Auditors

a) James, a sole practitioner, has provided extensive advisory services to one of it's audit client, KDV, Among the advisory services that James has provided her; interpretation of financial statements, provision of forecast and other analyses, advising on potential expansion plans and advising on banking relationships and also not made by management decisions. KDV is a privately held entity.

b) Cretus , auditing and accountancy services, has been asked by the audit client, POPS furnitures, to help implement a new control system. Cretus will arrange interview for POPS hiring of new personnel and instruct oversee the training of current entity's personnel. POPS is a privately held company. Cretus will make all hiring decisions and supervise employees once there trained.

c) KPMG recently won the audit of Kafue textile, a large manufacturer of women's clothing John one of the partner for KPMG and has a substantial investment in Kafue textile prior to biding on the engagement. in anticipation of the winning the engagement, John placed his shares of Kafue textile in a blind trust, (an arrangement in which a financial holding of a person in an influential position are placed in the control of a fiduciaryin order to avoid a possible conflict of interest.

d) BML audit firm and consultancy is Minwood Holding apartments in which the parents of Joy a member of the audit firm own a unit and reside. The unit is material to the parents' net worth, and Joy is on the audit team that is participating in the engagement.

e)Solo, a sole practitioner, audited Auto world's 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 field work planning for the audit of the next year's 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 unpaid fees, and Grand Thornton has proceeded with the audit services for the current year.

for each of the above situation indicate with reasons, whether each situation violates the code of independence and suggest future safe guards. you may present your answer in the format below

violates or/does not violates way it violates/or way does not violates Future safeguard

A

B

C

D

E

F