Question 1. Professional Ethics: (12 marks) When considering accept a new client, auditors need to comply with ethical requirements of the professional standards (Le. PES 1). Referring to the information given in the case: a) Identify th situations that may impose ethical threats to the auditors and the audit firm. b) For each situation, evaluate and explain the potential ethical threats identied in a) 0) Discuss possible safeguards to address each ethical threat Please present your answers in the following format and refer to the most suitable paragraphs in PBS 1 Situation Identify a situation that Evaluate and explain the Discuss safeguards (c) may impose ethical ethical threats identified (b) threats (a)