Read the following three independent scenarios and identify and explain which

fundamental ethical principle(s) has/have been breached in each scenario. Include in your explanation what is expected in terms of the fundamental principle concerned. Where threats to independence exist, these should also be identified and explained.

1. Sam, a newly qualified Chartered Accountant, has recently joined Vigilant & Co, a

medium size audit firm. Sam was briefed by the audit manager while initiating the audit planning of Tasman Ltd., a highly sophisticated 'high-tech' client, involved in online sale of computers, video games, mobile phones, and accessories. The manager told Sam that:

". since you are tech savvy, you must be highly vigilant during the audit because I

am a technophobe and I simply do not understand these new ways of doing business" The audit manager further informed him that the client was struggling financially last year due to COVID, so the audit fees for the previous audit are still pending.

1. You are one of three partners of GKNZ, a registered audit firm. Peter, one of the other

two partners tells you that POW Ltd, one of his audit clients is planning to list their

shares on the stock exchange early next year (i.e., an IPO). He mentions also, that the

client is extremely pleased with GKNZ's services, so they want the audit firm to help

them initiate the IPO.

1. EWC, a medium size audit firm, has been asked to prepare a valuation of a factory

owned by Alpha Associates Ltd, an audit client. The company wants updated figures

for insurance purposes and for incorporation in its annual financial statements.