The three-party relationship is one of the elements of an assurance engagement. You are required to choose from the following which three parties are involved in the context of an external audit. Question 26 Not yet answered Marked out of 1.00 Flag question a. A practitioner for example an external auditor, a responsible party is the shareholders and indented users are the BOD b. None of the options O c. A practitioner for example shareholder, a responsible party is the BOD and indented users are the external auditors O d. A practitioner for example an internal auditor, a responsible party is the BOD and indented users are the shareholder n27 Which of the following threats to objectivity may occur as a result of the financial interests of a professional accountant in a client company? ed out of a. Self-interest threat O b. None of the options c. Self review threat d. Intimidation threat 29 d You are auditing one of your firm's clients that is listed on a Stock Exchange. The client has an audit committee formed of three independent non-executive directors, as recommended by its country's code of corporate governance. If you believe that a member of this client's management is involved in fraud, to whom should this matter first be reported? out of a. Those charged with governance of the company O b. CMA O c. The Internal auditors O d. The shareholders n 28 Significant internal control deficiencies are those which merit the attention of those charged with governance. Which of the following could be seen as a control deficiency in the sales system? ed out of n a. All other options O b. Orders are recorded on notes and left on the sales ordering manager's desk O c. Sales invoices are not reviewed by anyone before posting on to the system O d. There is no sequence and authorization in the invoice numbers allocated to sales invoices