For each of the situations given, explain whether there is any violation to the principles in the Code of Ethics for Professional Accountants. If the principle is related to objectivity, discuss the relevant threats to objectivity. Make recommendations for corrective actions.

a Joe Yeung is a CPA partner with Wong and Chiu, CPAs. He owns 50 shares of stock in a publicly listed company which is his audit client of the firm. The value of the shares is not material in relation to his total wealth.

b Annie Chow serves on the audit committee of Sunny Communications Ltd., a telecommunications start-up company. The company is currently a private company. One of the audit committees responsibilities is to evaluate the external auditors independence in performing the audit of the companys financial statements. In conducting this years evaluation, Annie learnt that Sunny Communications external auditor also operated Sunny Communications local area network for several months while the company searched for a replacement after the previous network manager left the company.

c Raymond Kwok has been the audit engagement partner of Pluto Limited for two years. Raymonds daughter has just graduated from university and joined Pluto Limited as an administrative clerk.