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You are the audit manager of Currant & Co. and you are planning the audit of Orange Financials Co. (Orange), who specialize in providing loans

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You are the audit manager of Currant & Co. and you are planning the audit of Orange Financials Co. (Orange), who specialize in providing loans and financial advice to individuals and companies. Currant & Co. has audited Orange for many years. The directors of Orange are planning to list it on a stock exchange within the next few months and have asked if the engagement partner at Currant & Co. can attend the meetings with potential investors. In addition, as the finance director of Orange is likely to be quite busy with the listing, he has asked if Currant & Co. can prepare the financial statements for the current year to later be audited. During the year, the assistant finance director of Orange left and joined Currant & Co. as a partner. It has been suggested that due to his familiarity with Orange, he should be appointed as the partner on the audit engagement. Once Orange obtains its stock exchange listing, it will require several assignments to be undertaken, for example, obtaining advice about corporate governance best practice. Currant & Co. would like to be appointed to these engagements; however, Orange has implied that in order to gain this work, Currant & Co needs to complete the external audit quickly and with minimal questions/issues. The finance director has informed you that once the stock exchange listing has been completed, he would like the engagement team to attend a weekend away at a luxury hotel with his team, as a thank you for all their hard work. In addition, he has offered a senior member of the engagement team a short-term loan at a significantly reduced interest rate. (a) Your answer is correct. Which of the following issues represent self-interest threats? (Several choices may be correct.) Orange has asked the engagement partner of Currant & Co. to attend meetings with potential investors. Due to the stock exchange listing, Orange has requested that Currant & Co. produce the financial statements. The assistant finance director of Orange has joined Currant & Co. as a partner and has been proposed as the audit partner. Orange has several potential assurance assignments available, and Currant & Co wish to be appointed to these

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