1. A fraud has recently been discovered, involving the chief buyer in the purchasing department of 5 Robin Ltd and a purchase ledger clerk in the accounts department over a period of two years. The managing director of Robin Ltd has written to the company's auditors claiming that they had a responsibility to detect frauds during the course of their audits, and requesting an explanation as to how they could have missed it. What points should the auditors make in response to the managing director? 2. You have been invited so tender for the audit of Duplex plc. a company that owns and operates 5 35 hotels in the South West of England. You have not previously acted for Duplex plc, but you are the current auditors of Comfort Hotel, a company that owns and operates hotels in 30 out of the 35 towns in which Duplex plc operates. The hotels operated by each company offer similar facilities to each other at a similar price. Identify and explain the principal ethical issue that you may need to consider when deciding whether or not to tender for the audit of Duplex plc, and state the procedures you may need to implement in the event that your tender was successful