Part A Audit Planning and Professional Ethics Required: (40 marks) 1. Referring to the case facts, identify and explain three potential threats to professional ethics. Discuss possible safeguard to address each threat. (10 marks) 2. Following the above meeting, the engagement partner asks you to review the unaudited financial statements for the year 31 December 2018 (attached as a separate Excel document) and to produce the audit planning workpaper discussing the potential risks of material misstatement that the firm may encounter in this audit. (30 Mark) Your audit planning workpaper must cover the following: a) Identify ten risks factors (conditions) that the financial statements maybe misstated. b) Explain the potential impact of each of the identified risk factor on the assertions of the financial statements or the audit. c) Determine the audit strategies or procedures that should address each identified risk. Use the following format to present your answer. Identify the The potential impact on the assertions Audit strategies or risks (facts) (a) of financial statements or the audit. procedures to address the (b) risks (c)