Q1 "Independence is the cornerstone of the auditing profession." Critically evaluate this statement within the context of threats to auditor independence and safeguards. 20 marks Section B (ANSWER ANY TWO QUESTIONS) Q2 The Calculus of Fraud is premised on the perception that Reward (R) is greater than the product of probability of getting caught (P) and perceived gravity of loss (L). Relying on Wolfe and Hermanson's Fraud Diamond, critically evaluate recent developments in Ghana's banking sector. 20 marks Q3 You have received the following email from Mrs Lanbuk Kadiok; As I mentioned to you recently, I have been nominated as the Board Chairperson for the Tasky Group of Companies. I have just received the Management letter relating to the 2017 audit Virtually every paragraph talks about controls and internal controls. I have the feeling that these are central to the finance function of the Group. Can you please enlighten me on internal controls, and why they are crucial? 20 Respond to the email. marks 04 (a) "It makes commercial sense to outsource the internal audit department rather than maintain an in-house system." Discuss 10 marks (b) Evaluate the factors to consider in assessing the need for an internal audit department for a growing entity 10 marks Q5 ISA 500 enjoins the auditor to obtain sufficient appropriate audit evidence to be able to draw reasonable conclusions on which to base the audit opinion. Using appropriate illustrations, outline and explain the procedures you will use to obtain evidence for a payroll audit 20 marks