The following scenario relates to questions 12-15 You are an audit manager of Real audit company. You have been just assigned to one of the firm's established clients, Astana Wealth Management LLP (Astana). This company is a public interest entity and provides an investment advice, estate planning, accounting, retirement, and tax services. Mr. Nikitin has been audit partner for Astana for the last eight years. Mr. Nikitin tells you that Ravshanov, junior manager of audit team for Astana, received an investment advice from Astana and planning to continue to do so. During the initial meeting with Astana's Finance director, you are told that the fee for tax consulting services this year should be based on a percentage of tax economy. He also invited audit team to the concert. Concert tickets are considerably less than the usual VIP treatment, he hopes this will be acceptable. 12. In relation to Mr. Nikitin's audit partner role for eight years which of the following safeguards should be implemented in order to comply with ACCA's Code of Ethics and Conduct? a. Mr. Nikitin should be removed from the audit team b. An independent review partner should be appointed C. Real audit company should resign from the audit 13. In line with ACCA's Code of Ethics and Conduct, which TWO of the following factors must be considered by Real audit before accepting an engagement to provide tax consulting services? a. The level of tax consulting services expertise in the audit engagement team b. The period of time over which the tax consulting service is expected to provide c. Whether the services involve participation and representation of interests of Astana at court d. The extent to which the advice will directly affect amounts reported in financial statements 14. In line with ACCA's Code of Ethics and Conduct, which TWO of the following factors must be considered by Real audit in relation offered concert tickets for the audit team? a. An intimidation treat may arise from the possibility of the offer being made public b. Offers and gifts cannot be accepted in any circumstances C. The audit engagement partner cannot accept a ticket d. The nature value and intent of the offer 15. Match each categories of threat, if any, that are presented by each of the following facts from the scenario: a. The audit partner has been in the position for eight years b. The audit team has been offered a concert ticket C. The fee for tax consulting services will be based on a percentage of tax economy d. The audit junior received an investment advice 1. Familiarity 2. None 3. Self-review 4. Self-interest a. b. c. d
