Answer Happy

Question one 125 Marks Each of the following four scenarios below are considered independent of each other. Each scenario (i) to (iv) will require a separate response even though in some cases the responses could be related (1) Winston Roper is a chartered accountant working at Wonton and Associates since January 10, 2015. Mr. Roper is now a senior accounting manager who was in charge of the audit of Sentinal Limited for the year ended December 31, 2020. On May 17,2021, Mr. Roper resigned and accepted a position at Sentinal as the entity's Financial Controller reporting to a finance director. The finance director only reports to the entity's CFO, Winston received a massive salary increase on accepting his new position as a financial controller. (ii) Tom Bulverde has been employed to Scaton Enterprise Limited since April 2020 as the entity's chief financial officer. Seaton Enterprise Limited has been audited by Platoon and Associates Chartered Accounting for the last five years. Platoon was also engaged to audit the financial accounting period ending December 31, 2021. However, during 2021, Tom resigned and accepted a position at Platoon as an audit partner. Tom was also assigned to the audit of Seaton as the lead engagement partner. KDH Chartered Accountants has been providing auditing and assurance services to Centurian Enterprise Limited since 2015. However, in addition to audited services for the year ended December 31, 2021, KDH was also engaged to prepare and file the Centurian's 2021 income and estimated tax retums. KDH also prepared and file the entity's annual returns in accordance with the Companies Act of Jamaica (iv) Chevan Sterling is an audit partner of CBM and Associates Chartered Accountants. Mr. Sterling is located in the Kingston office and he is not a member of the engagement team of Rasputen Limited. The Kingston office of CBM is currently conducting an audit of Rasputen Limited for the year ended December 31, 2021. Andreen Sterling is the current CEO of Rasputen and she is the wife of Chevan. Required: a. In each of the situations above, kindly indicate with a brief explanation whether or not there are any ethical breaches. 18 marks 11) b. For each of the situations indicated above, make recommendation as to how best to alleviate the possibility of breaches. [ 12 marks c. Define and review of financial statement and distinguish a review from an audit. 15 marks