Tucei, CPA, is the auditor of LGS, Inc., a midsized diversified public company with several subsidiaries; one of which sells life insurance. The chief executive officer of LGS met with Tucei to discuss the upcoming audit. He told Tucei that businesspeople should reciprocate in their business dealings with each other. Because he was buying an audit from Tucei, he said, Tucei should purchase a large life insurance policy from his company. Tucei explained that he did not need additional insur- ance coverage, but when threatened with the loss of the audit, he agreed to purchase the policy. The audit proved to be very difficult; many differences of opinion arose between Tucei and his client. Tucei had to work a significant amount of overtime, much of which he did not report on his time sheet because it would have caused a budget overrun. All problems were resolved to Tucei's and his client's satisfaction, and Tucei issued an unqualified opinion on the financial statements. To show his appreciation, the chief execu- tive officer of LGS, Inc. gave Tucei a new barbecue grill. Required:

a. Identify the ethical issues raised by the narrative, and identify the stakeholders (people affected by the ethical issues).

b. Describe alternative courses of action Tucei might have taken for each ethical issue, and the consequences of each alternative course.

c. What courses of action should Tucei have taken? Why?