Dibal Associate, an audit and assurance firm, has been engaged as auditors for the M & B Bank Ltd, a public limited liability Company for some time now. M & B Bank has sixty branches throughout the country including branches in Dodoma, Mwanza, Tanga and Zanzibar. The Bank is one of the banks in the country which can boast of large landed properties. Dibal Associate receives about 20% of its income from this particular client. Before last year’s audit, the bank engaged the audit firm to value its land and buildings in all its branches and headquarters. This work was executed by the audit firm and a report has been issued to management. The report has been incorporated in this year’s financial statements to be audited in the near future. Dibal Associate. see M & B Bank Ltd. as a very important client whose works are always executed with dispatch.
Identify and evaluate any two significant threats as per the Code of Ethics for Professional Accountants raised in the case and recommend the safeguards to either eliminate or reduce the threats to an acceptable level.