Objective Test 1- Suggested Solution Assessor: INT Mthembu CA (SA) 31 March 2022 Suggested Solution - Auditing 3A Objective Test 1 . The Finance Manager (FM) and the Chief Financial Officer (CFO) are professional accountants in business (CA(SA)s), therefore, part 2 of the SAICA Code of Professional Conduct is applicable to them. (1) . FM made the payment of a bribe to a traffic officer and the CFO acknowledged that he did the same in the past. (1) . Such an action could create a self-interest threat (1) to integrity (1), as they were dishonest in their dealings with their offences and the traffic officers. · Paying a bribe also causes a self-interest threat to professional behaviour, as such an action is against the law and could discredit the profession. (1) . The level of the threat is significant as their actions as, in an attempt to protect themselves, they were breaking the law in terms of South African Common Law. (1) . Their actions, in this regard, are a direct contravention of the SAICA Code of Professional Conduct. (1) . The acceptance of gratuity by CFO from a competitor's CEO could also amount to receiving a bribe in exchange for price fixing (1) . Price-fixing is a serious offence in terms of the Competition Act 89 of 1998 (1) . The CFO and the competitor's CEO are conniving to rob the parents' right to buy uniforms at competitive pricing (1) · The acceptance of a bribe also creates self-interest interest (1) and displays lack of integrity (1) from CFO . The CFO has contravened the Code of Professional conduct as his actions are illegal. (1) Additional point . The audit senior should communicate this information to his superiors as these discussions are indicative of finance leadership that lacks integrity and this can result in misstated financial statements at Amanzuza Ltd. (1) · Audit team should be encouraged to apply additional professional scepticism (1)