Question 4. You are an audit manager in Smith&Jones Co, responsible for the audit of The Chip and Pretzel Company which manufactures high quality, premium snack foods. The following issues have arisen during the audit. Located around the client's premises are display stands of chips and pretzels which are available for any visitors to the site. The audit team have been told by the finance director to help themselves to as many packets as they like during the audit. The FD, Margaret Lewis, has recently been recruited from your firm into the role. Margaret was previously the audit manager for this client having worked on audit for a number of years. As she is still settling into her role she has instructed you that she is not to be disturbed by excessive questions from the audit team. To avoid too much disruption to her working day she has requested that you have a brief meeting with her once a week and that under no circumstances should anyone other than you ask her any questions. Due to the growth of the company, the board of directors has decided it would like to follow best practise corporate governance principles in readiness for becoming listed in a few years' time. The company currently has an audit committee made up of the finance director and two non- executive directors. The non-executive directors are retired executive directors of the company. The company does not have an internal audit function. The board has asked for your advice on how they should become compliant with the requirements of corporate governance best practise as well as how they can improve the internal controls of the company given the growth of the company in recent years. Required: Please provide your answer to this question in a table format as follows: No. (a) Ethical threat identified (b) Appropriate safeguard 1. 2. (a) Using the information provided, identify TWO ethical threats that could affect Smith&Jones Co. (b) For each threat indicate an appropriate safeguard that auditors should consider to reduce the threat to an acceptable level