(c) Additional service to provide advice on social and environmental information

Up to 1 mark for each relevant answer point explained:

– Self-review threat identified and fully explained
 – Self-review threat increased because the social/environmental information included in annual report
 – Self-interest threat identified and fully explained
 – Pressure to perform work quickly
 – Assuming management responsibility identified and fully explained
 – Assuming management responsibility is prohibited for public interest clients
 – Steps could be taken to avoid taking on management responsibility (1 mark each suggestion to max 3 marks)
 – Group audit committee to approve non-audit work
 – Audit committee seem not to understand the ethical threats/should not have requested the advice from the audit firm
 – Scope of the work, and specific requirements from the regulators
 – Level of assurance which may be required and who is going to provide this
 – Skill and competence to perform work

Maximum marks 10