You are a partner in Heureka & Associates, a firm of chartered accountants. The following issues...

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You are a partner in Heureka & Associates, a firm of chartered accountants. The following issues have come to your attention; • John is the second in command on the team carrying out due diligence work at Bansa Ltd, a company one of your clients is considering taking over. John has confided in you that in the course of his work he has met the daughter of the managing director of Bansa Ltd and he is keen on inviting her on a date. • You recently went cruising with Mr Smart on his luxurious yacht. Mr Smart is the managing director of CEDA Ltd, your longest standing audit client. The firm has been involved with this company for the past 10years, four of which you were the engagement partner. • As a partner of the audit firm, you are responsible for two audit assignments, Vikita Ltd and Dugan Consult. Vikita Ltd has recently tendered for a contract with Dugan Ltd for the supply of material items over a number of years. • Kofi Mensah is the most junior member of an audit team of eight members, auditing Ninash Ltd, a listed company on the Ghana stock exchange. He has just invested in a personal pension plan of a scheme that invests in all the listed companies on the stock exchange Required • Comment on the ethical and other professional issues raised by the above matters. Your answer should outline the threat arising, the significance of the threat and any safeguards you could apply to eliminate or mitigate the threat. You are a partner in Heureka & Associates, a firm of chartered accountants. The following issues have come to your attention; • John is the second in command on the team carrying out due diligence work at Bansa Ltd, a company one of your clients is considering taking over. John has confided in you that in the course of his work he has met the daughter of the managing director of Bansa Ltd and he is keen on inviting her on a date. • You recently went cruising with Mr Smart on his luxurious yacht. Mr Smart is the managing director of CEDA Ltd, your longest standing audit client. The firm has been involved with this company for the past 10years, four of which you were the engagement partner. • As a partner of the audit firm, you are responsible for two audit assignments, Vikita Ltd and Dugan Consult. Vikita Ltd has recently tendered for a contract with Dugan Ltd for the supply of material items over a number of years. • Kofi Mensah is the most junior member of an audit team of eight members, auditing Ninash Ltd, a listed company on the Ghana stock exchange. He has just invested in a personal pension plan of a scheme that invests in all the listed companies on the stock exchange Required • Comment on the ethical and other professional issues raised by the above matters. Your answer should outline the threat arising, the significance of the threat and any safeguards you could apply to eliminate or mitigate the threat.

Answer rating: 100% (QA)

As a partner in Heureka Associates I will address the ethical and professional issues raised by the mentioned matters 1 Johns interest in the daughter ... View the full answer