Case study

Modern Technology Company is a medium-sized company specialized in producing an advanced generation of smart TV screens. Wish This company is in contracting with your audit firm to issue an opinion on the financial statements on December 31, 2019.

As part of your audit firm's quality control policies, each employee is required to submit to the company An updated disclosure of his and his family's investments every six months. There is also a special section for the audit company to investigate Relationships of kinship or friendship may exist between company auditors and any potential client.

Modern Technology Company as a potential customer and select the review team who is likely to be responsible for reviewing the lists It turns out that the wife of one of the auditors, an employee of your company, owns investments in the modern technology company Form of bonds offered by this company at high interest rates. It was also found that one of the auditors employed by your company binds him Relative relationship with one of the members of the board of directors of that company and that that auditor was the one who recommended this member to enter into a contract with Your auditing firm.

Required:

Now it's mid-January 2020, and you've been thinking about whether or not to accept the modern technology company as a customer. After reviewing the conditions Mentioned in the case above, take the following four points:

C. Discuss professional alternatives for dealing with each ethical problem and the consequences of each alternative.

D. Formulate and recommend a rational and practical business plan that will assist your company in making its decision regarding admission Or reject the modern technology company as a review client. . Carefully justify your position in light of the information in The case and taking into account the determination of the reasons, whether in the case of support or rejection.