Question $1(10$ marks$)$

Paul, a public accountant, received a call from his friend Tom. Tom$$s bank is demanding an audit because Tom applied for a loan for his small chain of computer stores.

Big Gig Ltd$.$ Tom needs the audit done right away. Since Tom had been his high school friend, and they still played soccer together every two weeks, Paul agreed. They had a quick meeting at a local pub, and Paul set the audit fee at $$10000.$ Tom stressed the importance of an unqualified opinion for the bank. Paul mentioned that most audits ended with an unqualified opinion.

On Monday, Paul sent two of his junior staff to Tom$$s offices. The junior staff were experienced in review engagements and had been working for Paul for about six months. They had a quick look around the office, noting documents strewn everywhere. Some of Tom$$s accounting staff came into the office and briefly chatted with the audit staff. They were about a month behind on paperwork because Tom had laid off some staff. To get past the backlog, Paul$$s staff spent the morning providing sales quotes to potential customers based on a fixed price list. At the end of the day, the junior staff were each given a $$250$ gift certificate to be used in the computer stores.

At dinner that night, one of the junior staff told their family that it would probably be a great idea to hold off on any computer supplies or equipment purchases that they needed, since Big Gig would likely hold a sale in the next month or two to improve cash flow.

Required

Identify and discuss five violations of the rules of conduct with respect to Big Gig Ltd$.$