You are the partner in charge of the audit of New Age Designs Ltd. Sean Rice is a student studying accounting at UTAS. Sean is employed as a ‘holiday casual’ in your audit firm. Sean is also the son of the Stoneman of New Age Designs. You have discovered that the manager in charge assigned Sean to the audit of New Age Designs to assist with the annual year-end inventory count and related procedures. The inventory count has not commenced. 

Required: 

a. Identify any professional standards and/or regulatory requirements which have been breached; 

b. Fully explain the impact of the breach; 

c. Identify and explain any safeguards that can be implemented to ameliorate the breach.