Case 1 – Independence

According to the Independence Rule, an auditor can be elected as an honorary member as long as: the
position is in fact purely honorary; listings of directors show she is an honorary director; she restricts
participation strictly to the use of her name; and she does not vote or participate in management
functions.

Case 2 – Independence

1. Yes. Toni is still active as an ex-officio member of the income tax advisory committee of the firm.
2. Toni has two options: he can either choose to cut his association with the partnership; or resign from
being part of the board of directors in Honeypie Corporation.

Case 3 – Financial Interest

1. No, because he is affiliated with a ordinary share owner of ABC company which means that he would
not be independent.
2. No, because he is still affiliated with his dependent daughter.
3. No, because the grandfather is still affiliated to him. The grandfather' also took 2/3 of his retirement
savings through the purchase.

Case 4 – Self-Review Threat

Yes, he is in violation of the Code of Ethics due to this impairment of independence. He was previously
employed in ABC corporation which made him had an employee relationship with them.

Case 5 – Gifts and Hospitality

Based on code of ethics, i would just decline the offer given for both me and my staff.