Finch & Co. is a six-partner firm of chartered accountants, with an office in the small town of Bulhampton. Since the firm was founded in 1950, it has provided audit, tax and accountancy services to local private companies. The gross fee income of the partnership in 1994 was £450,000. The partners of Finch & Co. currently (May 1995) anticipate a visit from the Joint Monitoring Unit. Mike Dunn, who was made a partner in January, has been asked to review the firm’s activities in order to identify any issues that might attract comment from the JMU...............

QUESTIONS FOR DISCUSSION
1. Comment on James’s responses to each of Mike’s points. Do you consider them to be adequate? If not, what further action needs to be taken?
2. Are there any other issues not identified by Mike which the firm needs to consider?