Homework q

Question 2 (60 Points) Regarding the given cases, please choose the threat on the auditor's independence and its impact on the fair presentation of the financial statements. (5 Points for Threat, 10 Points for Effect) 1. Impressed by the auditor's qualifications, the client's board of directors offers fora CEO position for a temporary period of time. Type of Threat If the auditor accepts the proposal, how does it affect fair presentation of nancial statements? 2. The auditor and CFO of the client have been friends since high school. Type of Threat What is the effect on this relationship on the fair presentation of financial statements? 3. An audit team member invested KD 1,000 in the client company's shares. Type of Threat What is the effect on this action on fair presentation of financial statements? 4-. The CPA firm's bookkeeping client offered to get audit services. The partners are considering the offer. Type of Threat If the auditor accepts the proposal, how does it affect fair presentation of nancial statements