Source for questions not developed by KBS are included after the respective question ACC4400 Questions Workshop 1 During Workshop Questions (Class Activity) Class Activity 1 Jason is at a neighbourhood Christmas party with several of his flatmates. Over a few beers, Jason gets into a conversation with a neighbour, Tony, about mutual acquaintances. Jason is a junior auditor with a large accounting firm (although he tells Tony that he is a partner at the firm), and Tony works for a large bank. During the conversation Jason and Tony discover that they have both had professional dealings with a particular family-owned manufacturing company. Tony reveals that the company's line of credit is about to be cancelled because of some irregularities with the security documents. Jason is concerned to hear this news because he has just participated in the company's financial report audit and there was no indication of any problems with its borrowings. Jason tells Tony that he believes that the founder of the family-owned company (and the current CEO) is having an affair with his personal assistant, and has quietly increased his shareholdings in a listed company that supplies components to the family manufacturing company. The components manufacturing company is about to announce to the share market that it has just won a very large, and very profitable, contract with a Chinese company. Required: Discuss the fundamental principles of ethics that are potentially breached by Jason's behaviour at the party. Adapted from Moroney, R, Campbell, F & Hamilton, J (2020) Class Activity 2 You have been asked by your audit client Blue Water Ltd to prepare a report that analyses the potential acquisition of Ocean Pty Ltd. As part of your analysis, you decide to verify the accuracy and completeness of Ocean's most recent cash flow statement. After reviewing a draft of your preliminary analysis, the chief financial officer (CFO) of Blue Water, Jill Symes, has asked you to focus your attention on Ocean's sales and profitability and to avoid the distraction of cash flow reporting. She suggests that the acquisition will provide substantial future financial benefits to Blue Water and that confusing the board with cash flow issues would not be helpful to the acquisition or to the likelihood of your being asked to undertake similar engagements in the future. Required: List two threats that may exist in regard to compliance with the fundamental principles of professional ethics, and identify the fundamental principles that are at risk of being breached. Adapted from Gay GE., and Simnett, R.(2018) Class Activity 3 V