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.