ACCT 4231 : Assurance A1 {:1 Required Identify whether each situation is a violation or not, and explain your answer. The first sentence of your answer should be: \"Yes, there is a violation.\" Dr \"No, there is not a violation." [10 marks total, 2 marks each} Question 3 [10 marks) Sandra is a new partner at a PA rm. Sandra recently signed a new contract with Gretchen Fabrics to become its auditor. In the process of accepting the client and planning the rst year's audit, Sandra did the following: Sandra contacted the previous auditor to enquire if there were any reasons not to accept the audit of this client. Unfortunately, the previous auditor was on vacation and did not respond to Sandra before she accepted the client. Upon his return, the previous auditor did communicate with Sandra and indicated that the client had aggressive expense deferral policies that they disagreed on. Sandra asked to review the working papers of the previous auditor with regards to these expenses and found them to be right below the materiality threshold. Gretchen Fabrics imports most of its fabrics and has two production facilities in Asia. The company therefore has a complex tax structure and many import duties. Since this is not the area of expertise of Sandra, she asked another audi'o'ng rm to provide the required audit procedures for the international taxes and duties expense. When selecting the other audit rm, Sandra researched the rm on theinternet. She also ensured that they had their professional designation and enquired with the CICA and provincial association if the rm had any complaints or litigation outstanding for malpractice