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Question 1. Mike Killian was cynical that one person alone was making more money than all the rest of Bearings Bank staff. Questioning the reliability of information and being alert to conditions that may indicate possible fraud is an attitude expected from auditors. In your view, what is the name of the professional attitude for auditors and explain the concept of this professional attitude.
Question 2. Using your knowledge of APES 110 Code of Ethics for Professional Accountants to identify and explain the potential type(s) of threats to Nick Leeson's independence. Suggest what safeguard(s) should be instituted to reduce the threats to independence.
Question 3. Before going insolvency in 1995, Barings Bank had received an unmodified audit report. In your view, what does this mean regarding the audit expectation gap? How does an unmodified audit report relate to the collapse of Barings?
Question 4. Explain the concept of reasonable assurance, and how reasonable assurance is determined? Discuss the three reasons why an auditor cannot offer absolute assurance.
Attachment:- Mike killen.zip
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