Cox and Sherlock are an established firm of accountants who carry out audit duties. They have a portfolio of over 100 clients and the largest client provides 8% of their fee income. It is company policy when issuing the audit management letter to recommend that any system weaknesses be improved by either their consultancy or IT division carrying out the work. They say that, as the auditors know the problems, a degree of liaison can lead to a cost-effective solution.

Discuss the ethical issues involved in this situation.