1. You are required to identify and explain the five fundamental principles of professional ethics.
2. Briefly explain the category of threats to the auditors independence highlighted by the The By-Laws on Professional Ethics.
3. Mullins is a junior auditor in the Neverland Public Accountants and have served the firm for over 2 years. Throughout his audit engagements, he has known some big business tycoons that have brilliant and optimistic business approach that may bring handsome returns and at the same time may have impact towards the work of the auditor. However, as the tycoons always indicated that profitability and business opportunities must be grabbed, Mullins feels that the auditors are being conservative and prudence and this may hamper the growth of business.

In order to get along with the tycoons, Mullins began to disclose information on the other clients and giving advantage to the parties and he got some benefit-in-kind rewards from the tycoons.

Based on the scenario above, you are required to identify the issues that has clearly breached or jeopardise Mullins profession as an auditor.