Question
Instructions: You are required to provide comments or explanation regarding the following short answer questions. 1) Darren and Eason are the senior partners in a
Instructions: You are required to provide comments or explanation regarding the following short answer questions. 1) Darren and Eason are the senior partners in a mid-size audit firm Florida. They have both acted as the lead audit partner at different times with a long-standing audit client, Sydney Tools Ltd. The new CEO of Sydney Tools Ltd has requested a meeting with Darren and Eason to discuss issues with the firm's work, including the length of time the audit team are on its premises completing the audit work and the size of the audit fees charged in the past two years. Darren and Eason have decided to negotiate with the new CEO regarding the audit fees for the coming year in the meeting. They offered the Industries a discounted audit fee if it also assigned all its tax consulting work to the firm. Required a) What concerns should Darren and Eason have about the requested meeting? Explain. b) Explain whether the offer of discount fees is appropriate? Provide comments.
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