CUSSION QUESTIONS AND PROBLEMS BTES s-3) The following are five independent scenarios it is one of the partners of a Certified Accountants firm Biscuits and Cream. Buscuits and Cream operate as a partnership in lasow. Sarah Cream,his other ner was convicted of manipu holders of Red Bean are suing the firm. Will Alex be liable to the lawsuit in a capacity? Explain. The Inland Revenue Board has found the directors of Pian Lang Berthad guilty of tax evasion. Pian Lang kept two sets of contradictory accounts and docum One set of accounts and documentation was presented to the auditors Gong Chartered Accountants and subsequently the Inland Revenue Board for their desk audit. The other version, which was the correct version, was hidden from the auditors and the tax authorities. Will Gong Gong Chartered Accountants be liable for the audit failure of Pian Lang Berhad. Explain. part- udit of Red Bean Ltd.The share lating the results of the a Gong 3. The shareholders of Cyberliterate are suing the firm Tak Fa Ham & Associates for negligence. The audits of Cyberliterate was performed by an audit junior who was not competent using Microsoft Excel. The audit partner Mr Tak did not review the work of his junior thoroughly. The audited financial statements were erroneous and were a subject of ridicule during the annual general meeting by the members. 4 The firm Ram Chartered Accountants has received a letter from the Income Tax Department requesting that the accountants cooperate in a money laundering case invo- ing the directors of Ponyo Pte. Ltd. Ram Chartered Accountants has refused to respond. alleging that the audit files are considered privileged between the firm and its chent