$\backslash$table$[[\backslash$table$[[$Octavia Minor has returned to her homeland in Rome to be with her family. We are excited that this opens up opportunities for us in the Italian market. However, I am concerned that, although Octavia has completed her training contract and is eligible to register as a chartered accountant, she has chosen not to join SAICA, which could be a complication.$],[8$:$17]]],[\backslash$table$[[$Mark Anthony is still working on completing his Bachelor of Accounting degree $("$BAcc$").$ I am worried that his current status as a student might be an issue for his role as a director in the firm. To address this, while he will be a shareholder, he will not be appointed as a director until he completes his studies.$],[8$:$18]]],[$Julius Ceasar, with his Masters of Law qualification and $20$ years of experience, will be our partner in charge of taxation and legal matters. However, I am concerned about his past. He was previously removed from his Director of Legal Affairs role in$]]$

$99$

HLAA$130-1-$Jan$-$Jun$2025-$FA$2-$PM$-$V$3-17122024$

ANNEXURE I: FORMATIVE ASSESSMENT $2$

$\backslash$table$[[\backslash$table$[[$another entity, due to a bribery issue, which led to significant financial difficulties for him resulting in a compromise with his creditors.$],[8$:$20]]],[\backslash$table$[[$With the exception of Octavia, we all plan to remain resident in South Africa. We are unsure as to what form of business to follow in incorporating 'CSA', the plan is to ultimately register CSA with IRBA, but we are unsure of the steps to take.$],[8$:$21]]]]$

REQUIRED:

With reference to the Auditing Profession Amendment Act $5$ of $2021,$ prepare a response to address Cleopatra's concerns regarding registration with the Independent Regulatory Board for Auditors $($IRBA$).$ In your response, discuss the following:

Whether Cleopatra and her partners will be able to register as registered auditors.

$(14$ marks$)$

The registration of Cleopatra Scribes and Associates $("$CSA$")$ as a registered audit firm, considering the various business structures available.

$(10$ marks$)$