Chartered Partners is a firm of Chartered Certified Accountants and audits Fashionista, an unlisted company that manufactures and retails clothing domestically. The following financial information was extracted from the draft individual financial accounts for the year ended 30 June:

2020

2019

Intangible assets

150

120

Property, plant & equipment

7,600

4,900

Current assets

14,000

10,000

Total Assets $'000

21,750

15,020

Equity

13,550

10,300

Non-current liabilities (provisions)

200

100

Current liabilities (payables)

8,000

4,620

Total equity & liabilities

21,750

15,020

Fashionista purchased 100% of the shareholding of Bling on 30 June 2020. Bling is a foreign company that manufactures jewellery for sale internationally, on-line. The following information relates to the acquisition of Bling and was not recognised in the draft financial accounts of Fashionista:

Carrying amount

Fair valueadjustment

Fair value to the group

Bling brand name

-

-

800

Plant and equipment

100

500

600

Current assets

500

-

500

Current liabilities

(620)

-

(620)

Net assets on acquisition

(20)

419

1,280

Goodwill on acquisition

920

Cash consideration

2,200

Fashionista invited Chartered Partners to nominate as auditor to Bling. Fashionista indicated that the audit fee for the group should not exceed 120% of the fee previously agreed for auditing the individual accounts of Fashionista.

Bling's chief executive was dismissed recently for allowing Bling to breach waste management laws. Bling received notice from the Environmental Protection Agency (the government regulatory body) that it is assessing the significance of the breach, which may incur sanctions and a financial penalty. The breach has been reported widely in the local media.

Required:

Explain the matters for Chartered Partners to consider before accepting the engagement to audit the financial statements of Bling.