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Part II JShop is one of your audit clients. You are the audit manager and auditing the financial statements of JShop for the year ended

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Part II JShop is one of your audit clients. You are the audit manager and auditing the financial statements of JShop for the year ended 31 March 2019. Joseph, the audit trainee, is involving in this audit engagement. One day, he discussed with you and sought your advices regarding the following situations. Required: You are required to evaluate the MOST possible threat in each following situation. (1 1 marks) The MOST Situation possible threat A senior audit partner was having a long relationship with the assurance client. An audit manager was feeling pressured to agree with the expression of unqualified audit opinion for the audit client because the client mentioned to change the auditor in the coming year. An auditor provided recent accounting services with an audit client before the commencement of audit assignment. An auditor promotes the client brand to other clients or friends to the point that the auditor's objectivity is compromised. The financial controller of the client invites the audit manager and the audit team to a fine dining before the commencement of audit. Audit client suggests 20% of the external audit fee is based on profit after tax. An audit manager acts as an advocate on behalf of the audit client in litigation with third parties. The director of the audit client in a position has significant influence Page 5 of 13 over the subject matter of the audit engagement having recently served as the audit team partner. A member of audit team is recently employed by the client in a position to exert significant influence over the subject matter of the audit engagement. The audit client asks the audit partner to attend meetings with potential investors and shareholders. The audit client implies the auditor to complete the audit quickly and with minimal questions if they wish to obtain the audit assignments

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