Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. Your firms gross fee income has been relatively static at 500,000 per year for a number of years. The firm has been invited to
1. Your firms gross fee income has been relatively static at 500,000 per year for a number of years. The firm has been invited to carry out the audit of Oliver plc (Oliver), a company listed on the London Stock Exchange. The audit fee charged for last year was 85,000 and as there have been few changes since the prior year your firm expects the audit fee to be similar this year. Your firm will not provide any other services to Oliver.
Should the firm accept the audit appointment of Oliver? Justify your answer.
2. You are working as member of the audit team for a new client, Daisy Ltd (Daisy). The audit manager boasts to you that he was responsible for your company gaining the audit of Daisy as his father is the Financial Director of Daisy and was responsible for appointing the auditors
Discuss the threats to ethical behaviour arising in this scenario.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started