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6:07 ACC305 Grou...65331bf6.docx QUESTION 3 a) You are the audit manager in the audit firm of Chase Morgan & Co operates in Cyber.laya. Your audit clients is Messalati Berhad, a company specializing in the manufacture and supply Of heavy machine equipment Messalati Berhad have been an audit client for seven years and you have been audit manager for the past three years while thc audit partner has remained unchanged. You are now planning the audit for the year ending 3 1 December 2019. Following an initial meeting with thc directors of Mcssalati Berhad, you have obtained the following information. i. Messalati Berhad is attempting to obtain a listing on a recognised stock exchange. The directors have established an audit committee, as required by corporate governance regulations. although no further action has been taken in this respect. Information on the listing is not yet public knowledge. ii. You have been asked to continue to prepare the company's financial statements as in previous years. iii. As the company's auditors, Messalali Berhad would like you and the audit partner to attend an evening reception in a hotel, where Messalati Berhad will present their listing arrangements to banks and existing major shareholders, iv. Messalati Berhad has indicated that the ree for services rendered in the year to 31 December 2018 will be paid soon. Finally, you have just inherited about 1% of Messalati Berhad's share capital as an inheritance on the death of a distant relative. Required: Identify and explain the FIVE (S) factors which may threaten the Independence of Chase Morgan & Co's audit of Messalati Berhad's financial statements for thc year ending 31 December 2019. Briefly explain how each threat should be managed. (20 marks) b) Explain With example the FIVE (5) auditor's code of ethics. 30 marks) (10 marks) (Total: