Ethics

Always Right Inc $($Always Right$)$ is a registered audit firm in South Africa. Always Right regularly receives referral fees from other professional accountants when specialist services are required from these professional accountants during audit engagements. The following matters also relate to Always Right.

Matter $1$

Yolande Jonker, an audit manager at Always Right, has dealt with the audit of Better Me $($Pty$)$ Ltd for $10$ years, starting as a first$-$year trainee and working her way up to audit manager. Since she spends many hours with the audit client, she has her own office at the company and is listed in the internal telephone directory of Better me $($Pty$)$ Ltd$.$

Matter $2$

Gregory Mafokeng is a newly appointed partner at Always Right. His wife, Gina Mafokeng owns

$60\%$ of Rainbow $($Pty$)$ Ltd$.$ Rainbow $($Pty$)$ Ltd owns $75\%$ of the shares in Wall $($Pty$)$ Ltd$.$ Wall $($Pty$)$

Ltd is an audit client of Always Right.

Identify the type of threat $($there could be more than one$)$ applicable

to matter $1$ and matter $2.$