.Providing bookkeeping services to an audit client 5-18 (Objectives 5-5, 5-6) Each of the following situations involves a possible violation of the IESBA's Code of Ethics, For each situation, state the fundamental principle related the situation and whether it is a violation. a. Fadl Shaker is a CPA, but not a partner, with three years of professional experience with Shaker & Shaker, CPAS. He owns 25 shares of stock in an audit client of the firm, but he does not take part in the audit of the client, and the amount of stock is not material in relation to his total wealth. b. A non-audit client requests assistance of Medhat Fahmy, CPA, in the installation of a local area network. Medhat had no experience in this type of work and no knowledge of the client's computer system, so he obtained assistance from a computer consultant The consultant is not in the practice of public accounting, but Medhat is confident of his professional skills. Because of the highly technical nature of the work, Medhat is not able to review the consultant's work c. In preparing the personal tax returns for a client, Samir Wakeel, CPA, observed that the deductions for contributions and interest were unusually large. When he asked the client for backup information to support the deductions, he was told, "Ask me no questions, and I will tell you no lies." Wakeel completed the return on the basis of the information acquired from the client, d Sally Moftah, licensed auditor, serves as controller of a Tunisia-based company that has a significant portion of its operations in several Middle Eastern countries. Certain government provisions in selected countries require the company to file financial statements based on international standards. Sally oversees the issuance of the com pany's financial statements and asserts that the statements are based on international financial accounting standards; however the standards she uses are not those issued by the International Accounting Standards Board. e. Nermeen Fouad, licensed auditor, set up a casualty and fire insurance agency to complement her auditing and tax services. She does not use her own name on any- thing pertaining to the insurance agency and has a highly competent manager, Samar Habib, who runs it. Nermeen often requests Samar to review the adequacy of a client's insurance with management if it seems underinsured. She believes that she provides a valuable service to clients by informing them when they are underinsured. fFive small U.A.E. auditing firms have become involved in an information project by taking part in an inter-firm working paper review program. Under the program, each firm designates two partners to review the audit files, including the tax returns and the financial statements of another audit firm taking part in the program. At the end of each review, the auditors who prepared the working papers and the reviewers have a conference to discuss the strengths and weaknesses of the audit. They do not obtain authorization from the audit client before the review takes place. g. Karim Gaber, licensed auditor, provides tax services, management advisory services, and bookkeeping services and conducts audits for the same nonpublic client. Because the firm is small, the same person often provides all the services. ditors independence