Identify each scenario, answer any questions associated with it, and relate the case to the issues identified following the scenario. This summary should be a minimum of three paragraphs in length.

Scenario 1 You are a newly qualified chartered accountant who has recently moved to a midsize town to start a local practice. Your first client requires an audit. Standard procedure requires that you verify the inventory count at the year-end. However, the year-end was a month ago. This would be your first client and would bring in a fee of $5000. Do you accept the client? If so, under what conditions? (Issues: materiality, GAAP, objectivity, conflict analysis and management, negative social impact, moral conscience)

Scenario 2 During the review of the accounting procedures for Goggles by Paisano, you realize the company has the same accounting employee taking responsibility for the accounts payable sub-ledger and the general ledger. How will you react if you are performing an audit vs. a review of the corporate financial statements? (Issues: professional liability, internal control procedures for sub-ledger/control accounts, responsible use of power)

Scenario 3 Attracta Lures is a successful publicly traded company. You own 1000 shares in the company and have recently joined Pimon and Tumba CAs, who are the auditors of Attracta Lures. You know that you will be part of the audit team performing the audit of Attracta Lures. Should you tell the partners of the firm that you own shares in Attract Lures? Why or why not? (Issues: conflict of interest, code of behaviour, responsible use of power, moral conscience)