QUESTION $2$

$(10$ Marks$)$

For each of the situations described below, identify the category of threat to the fundamental principles of the SAICA Code of Professional Conduct. Additionally, specify at least one fundamental principle that is compromised in each situation.

a$)$ An auditor has shares in a company which is an audit client of theirs.

b$)$ An accountant has compiled the financial statements for a client and was requested to also audit the statements.

c$)$ The financial director of Baboo Ltd is very aggressive and dismissive of the audit function and audit team.

d$)$ A chartered accountant values a client's shares and then leads the negotiations on the sale of the client's company.

e$)$ The chartered accountant fails to report a fraud at a client because the perpetrator is a close friend and he is sympathetic to the interest of his friend.