Discuss the categories of threats

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Question 1: Discuss the categories of threats that may be involved in each of the following independent situations and advise the auditors of the concerned firm with regard to the possible course of action that may be followed, in each case.

(a) Burewala Bank Limited (BBL) is a listed audit client of Umer and Company, Chartered Accountants (UCC). BBL has granted a house loan of Rs. 5 million to a partner in UCC.

(b) Kamal was the audit manager during the last year's annual audit of Faisalabad Textile Mills Limited (FTML). He has joined FTML as their Manager Finance, prior to the commencement of the current year?s audit.

Reference no: EM132585288

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