As the audit manager of a CPA firm, please comment on the following independent situations:

1. Better World Ltd., an existing audit client, has threatened to sue the firm for professional negligence for last years audit. What would the firm consider when deciding whether it will continue to act as its auditor?

Support your answer with explanation.

2. Han On Ltd., a private company and an existing audit client, requested the temporary assignment of last years audit supervisor to assist the year end closing due to resignation of the accounting manager just after financial year end. What would the firm consider in determining whether it will accept the clients request?

Support your answer with explanation.

3. Goods Best Ltd., another audit client, requested your firm to review the accounting systems effectiveness. What would the firm consider in determining whether it will accept the clients request?

Support your answer with explanation