Question $1$

$($a$)$ An assurance provider is expected to give an independent opinion as a

professional with appropriate skills in assurance work.

You are required to:

a$.$ Identify and briefly explain FIVE key areas where independence of an

assurance provider may be under threat.

b$.$ An auditor can put in place specific safeguards to reduce TWO of the threats identified in $($a$)$ above. Explain these safeguards in details. $(5$ Marks$)$

$($b$)$The following balances represents material amounts in a company's statement of financial position, payable, receivables and bank accounts. Direct confirmation of these balances represents an important technique.

You are required to:

a$.$ Explain the main audit work expected to be carried out by you on receipt of the bank confirmation. $(5$ Marks$)$

b$.$ Describe the audit procedures relating to confirmation of receivable balances. $(5$ Marks$)$

c$.$ State and explain the steps the auditor is required to take if the management of an entity refuses to allow the auditor to send a confirmation request to customers. $(5$ Marks$)$

$($Total $30$ Marks$)$