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Each of the following situations involves a possible violation of MIA's By-Laws on Professional Ethics.
1. An auditor offered substantial rate of discount to a potential client to secure his appointment as the company's auditor.
2. Firdaus from Firdaus, Farah & Co., was asked to accept a nomination as auditor of Yaya Beverages Sdn Bhd. He has requested the prospective client's permission to communicate with the existing auditor. However Firdaus, accepted the offer even though the permission was refused.
3. Adli Motors Sdn Bhd has traditionally been presenting the members of audit team with New Year hampers. This year due to excellent performance, each audit member is given a hamper worth RM500. For each of the independent situations above,
Required:
Problem i. State whether there is a violation or non-violation of MIA By laws.
Problem ii. Indicate the MIA By-laws being followed or violated.
Problem iii. Provide an explanation for each.
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