Chris Pine is the audit partner in the Chartered Accounting firm of Pine & Associates, (PA)....

 

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Chris Pine is the audit partner in the Chartered Accounting firm of Pine & Associates, (PA). Chris has a substantial investment in Space Ltd, which has just put its audit for the year ended 30 June 2019 out to tender. On 31 October 2018 Chris has submitted a tender bid for the audit of Space. e REQUIRED: (a) - (1) Identify and explain the threat to independence. (2 marks) [Type Answer Here]e (ii) Determine whether Chris would be able to accept the audit if he won the tender. (2 marks)e [Type Answer Here] (ii) Explain whether your answer to (a) (i) would change if it was Chris's spouse who held the (2 marks)- shares. [Type Answer Here]e (b) Explain whether the situation would be any different if, prior to submitting the tender, Chris placed the shares into a blind investment trust where he had no influence over the trust's (2 marks) investments. [Type Answer Here]e (c) Explain whether the situation would be any different if after winning the tender, Chris disposed of his shares prior to commencing the audit. (2 marks)- Chris Pine is the audit partner in the Chartered Accounting firm of Pine & Associates, (PA). Chris has a substantial investment in Space Ltd, which has just put its audit for the year ended 30 June 2019 out to tender. On 31 October 2018 Chris has submitted a tender bid for the audit of Space. e REQUIRED: (a) - (1) Identify and explain the threat to independence. (2 marks) [Type Answer Here]e (ii) Determine whether Chris would be able to accept the audit if he won the tender. (2 marks)e [Type Answer Here] (ii) Explain whether your answer to (a) (i) would change if it was Chris's spouse who held the (2 marks)- shares. [Type Answer Here]e (b) Explain whether the situation would be any different if, prior to submitting the tender, Chris placed the shares into a blind investment trust where he had no influence over the trust's (2 marks) investments. [Type Answer Here]e (c) Explain whether the situation would be any different if after winning the tender, Chris disposed of his shares prior to commencing the audit. (2 marks)-

Answer rating: 100% (QA)

The threat to independence here is self interest threat since Chris has a direct financial interest ... View the full answer