Solution-Identify and explain the threat to independence

Identify and explain the threat to independence

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Reference no: EM132736974

Question - Chris Pine is the audit partner in the Chartered Accounting firm of Pine & Associates, (PA). Chris has a substantial investment in Space Ltd, which has just put its audit for the year ended 30 June 2019 out to tender. On 31 October 2018 Chris has submitted a tender bid for the audit of Space.

REQUIRED -

(a) (i) Identify and explain the threat to independence.

(ii) Determine whether Chris would be able to accept the audit if he won the tender.

(iii) Explain whether your answer to (a) (ii) would change if it was Chris's spouse who held the shares.

(b) Explain whether the situation would be any different if, prior to submitting the tender, Chris placed the shares into a blind investment trust where he had no influence over the trust's investments.

c) Explain whether the situation would be any different if after winning the tender, Chris disposed of his shares prior to commencing the audit.

Reference no: EM132736974

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Identify and explain the threat to independence

Reference no: EM132736974

Reference no: EM132736974

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