Question 1 (15 Marks) For each situation below identify and explain the threat and one fundamental principle that is com

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Question 1 (15 Marks)
For each situation below identify and explain the
threat and one fundamental
principle that is comprised.
- An auditor has shares in a company which is an audit client of
theirs.
- An accountant has compiled the financial statements for a client
and was requested to also audit the statements.
- The financial director of Baboo Ltd is very aggressive and
dismissive of the audit function and audit team
- A chartered accountant values a client’s shares and then leads
the negotiations on the sale of the client’s company
- The chartered accountant fails to report a fraud of a client
because the perpetrator is a close friend and he is
sympathetic to the interest of his friend.