Q) Discuss the categories of threats and related safeguards in each of the following situations:

a) Your firm is the auditor of Prime Super Markets Limited, a chain of super markets. During a promotional campaign, the management has distributed discount vouchers which have also been given to the audit team members.

b) You are the manager on the audit of Abid Textile Mills Limited. The client has requested you to send two staff members on secondment for three months to assist the chief financial officer as its two senior accounting team members have resigned recently.

(c) Fine Petroleum Limited (FPL) is the audit client of your firm for five years. During the year, the engagement partner has been changed due to mandatory rotation as per Code of Corporate Governance. However, the firm has decided to retain Atif, the audit manager, who has been involved in the audit of FPL for the past five years.