1. It has been said that auditors must be independent in fact and in reality because they must not be seen to favor one group such as shareholders over potential investors and providers of capital such as suppliers and banks.

You are in a meeting where the CEO states that he cares more about giving shareholders value and therefore does not care about others. You are to take a position in favor of the CEOs statement and argue in his support or take a position against his statement. Outline your reasons for or against ( in form of bullet points).

2. Why might a company refuse to accept an audit engagement of a firm? What factors would be compelling and why?