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Question - BBQ & Co has accepted the appointment to act as the auditors of Renfrew Limited and you are the audit manager in charge of this engagement. During the course of the audit on the financial statements, the following events have come to your attention:
1. Mr Lau, the engagement partner, has informed you that he would like his daughter Amanda to be part of the audit team this year. Amanda has just graduated with an accountancy degree from HKBU.
2. Mr Lau also informs you that Ken, the audit team senior, has been purchasing materials from Renfrew for a number of years. He will continue to do so in the coming years.
3. Renfrew has invited the whole audit team to attend a party on its own yacht when the audit is completed.
4. BBQ & Co is also engaged to represent Renfrew in a dispute with IRD regarding the amount of profits tax payable in a previous year of assessment under a fixed fee arrangement.
Explain the possible ethical threats in the above events and discuss the proper safeguards to be undertaken.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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