Q1 You are the audit manager in the audit firm of Zico and Co. One of your audit clients is Yennube Co Ltd, a company specialising in the manufacture and supply of pharmaceutical products. Yennube Ltd has been an audit client for five years and you have been audit manager for the past five years while the audit partner has remained unchanged. You are now planning the audit for the year ending 31 December 2019. Following an initial meeting with the directors of Yennube Ltd, you have obtained the following information. (1) Yennube Ltd is attempting to obtain a listing on the Ghana stock exchange. The directors have established an audit committee, in line with good corporate governance principles, although no further action has been taken in this respect. Information on the listing is not yet public knowledge. (ii) You have been asked to continue to prepare the company's financial statements as in previous years. (iii) As the company's auditors, Yennube Ltd would like you and the audit partner to attend an evening reception at Delaggio hotel, where Yennube Ltd will present their listing arrangements to banks and existing major shareholders. Yennube Ltd has indicated that the fee for taxation services rendered in the year to 31 December 2019 will be paid as soon as the Ghana Revenue Authority has agreed the company's tax liability. You have been advising Yennube Ltd regarding the legality of certain items as 'allowable for taxation purposes and the Ghana Revenue Authority is disputing these items. Finally, you have just inherited about 5% of Yennube Ltd's share capital on the death of a distant relative. (iv) Examiner: Alhassan Musah Page 1 of 2 Required: Identify, and explain the relevance of any factors which may threaten the independence of Zico & Co's audit of Yennube Co Ltd's financial statements for the year ending 31 December 2019. Briefly explain how each threat should be managed. (35 marks)