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You are an audit senior working at AUDITFIX, a professional services firm operating in the Sydney area. You are currently working on the audit of

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You are an audit senior working at AUDITFIX, a professional services firm operating in the Sydney area. You are currently working on the audit of AMAZONE, an online e-commerce retailer that was founded in Sydney in 2016 During a lunch while on the audit, you find out that a junior member of the audit team holds shares in AMAZONE. This member has been actively involved in the audit of AMAZONE's inventory over the last two weeks, a high-risk area identified by the audit partner before the audit commenced 01. Identify one independence threat from the information presented above. Brietly explain your answer in 50 words or less. (4 marks) Q2. Describe two ways that AUDITFIX could mitigate (reduce) the risks created by the issue you identity in 017 (6 marks) During the audit, you also become concerned that AMAZONE management has not given adequate consideration to the internal controls that need to be put in place for managing accounts receivable. Presently, one member of the accounts team is responsible for sending invoices to customers, confirming payments are received in AMAZONE's bank account, and updating the accounting records. Q3. Describe two problems with the current process for managing accounts receivable as described above? (4 marks) Q4. How would you recommend that the internal controls for accounts receivable could be strengthened? (4 marks) AMAZONE is also interested in preparing a Sustainability Report for the first time. The AMAZONE CEO has asked to discuss the following questions with you over lunch: Q5. What level of assurance audit firms do audit firms typically offer on Sustainability Reports and how does this differ from the level of assurance offered on the financial statements. (4 marks) Q6. Describe one economic, one social and one environmental disclosure that AMAZONE may make in its Sustainability Report that would not appear in its financial statements

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