Section A: This section is COMPULSORY. (40 marks) Question 1 Joe joined E\&W audit firm as an intern on 1 July 2022. During Joe's accounting degree course, he studied Financial accounting, Management accounting and Auditing modules, Joe is excited to learn as much as he can during his stint in E\&W. He knows that most of the clients are listed companies governed by the Securities and Exchange Commissions. Joe is proud to be training as a professional and will adhere to all core ethical values and to maintain a high level of independence at all times. In order to achieve full independence, the auditor is prohibited to undertake some services as detailed by the accounting body. To prepare Joe for the job, Karen, his supervisor will explain the management's responsibilities in financial reporting and the auditor's liabilities towards a financial audit assignment and other important information, before the audit commences Required: (a) Explain to Joe the difference Accounting and Auditing in term of their objective and reports to be delivered. (6 marks) (b) Explain the key role of the Securities and Exchange Commission in accounting and auditing. (2 marks) (c)Explain the role of Management towards financial reporting. (6 marks) (d) List FIVE core ethical values the auditor needs to observe when they are carrying out their duties. (5 marks) (e) What is audit independence? Briefly explain the two types of audit independence. (5 marks) (f)To protect the auditors' independence, the Accounting body has prohibited certain services. List SIX prohibited services for the auditing firms. (6 marks) (g) What are the five alleged actions that the client may hold the auditor liable during a lawsuit? (10 marks)