Explain why Tania Fellowes should have reservations about accepting the TLCL engagement to provide an opinion with respect to the laser machines. Make appropriate reference to fundamental ethical principles in your answer.

Fellowes and Associates Chartered Professional Accountants is a successful mid-tier accounting firm with a large range of clients across Canada. In April 2023, Fellowes and Associates gained a new client, Health Care Holdings Group (HCHG), which owns 100 percent of the following entities:
• Shady Oaks Centre, a private treatment centre • Gardens Nursing Home Ltd., a private nursing home • Total Laser Care Limited (TLCL), a private clinic that specializes in the laser treatment of skin defects The year end for all HCHG entities is June 30.
TLCL owns two relatively old laser machines used in therapy. Recently, staff using these machines have raised concerns that they have adverse impacts on patients.
The CEO of TLCL, Betty Raman, has approached Tania Fellowes, the audit partner responsible for the financial statement audit, about undertaking an engagement with respect to the laser machines.
Betty has asked Tania to provide an opinion that the machines are fit for use. Betty pointed out that the auditor for TLCL has not been appointed for the following year and suggested Fellowes and Associates might like to take on the laser machines engagement without charging a fee as a gesture of goodwill.
Prior to the appointment as the auditor for HCHG, the group that controls TLCL, some preliminary analysis by Tania identified the following situations: 1. One of the accountants who intended to be part of the 2023 audit team owns shares in HCHG. The accountant’s interest is not material to him. 2. Fellowes and Associates was previously engaged by HCHG to value its intellectual property. The consolidated balance sheet (statement of financial position) as at June 30, 2023, includes intangible assets of $30 million, which were valued by Fellowes and Associates on March 1, 2023, following HCHG’s acquisition of the subsidiary Shady Oaks Centre. The intangibles are considered material to HCHG.