N 22 Marks) 2. B Kolitz and Doodle Caf offers free coffee and cakes to its auditors provided that these are consumed on the company's premises which statement is correct? Accepting hospitality from an audit client does not give rise to a threat to the fundamental principles Provided the offer of coffee and cake is comparable to the benefit provided to the company's employees, the engagement leader may correctly conclude that the threat to independence is immaterial Accepting coffee and cake from the client is likely to result in a self-interest threat to independence. Accepting coffee and cake from the client may compromise due care C and D are correct D E Answer (write the letter you have chosen in the box below) - Reasoning QUESTION 3 (2 Marks)