Question
Liona is the managing partner of Ross and Associates, a small audit firm. Leona's role includes managing the business affairs of the firm, and she
Liona is the managing partner of Ross and Associates, a small audit firm. Leona\'s role includes managing the business affairs of the firm, and she is very worried about the number of fees outstanding from audit clients. Boomers Pty Ltd, one of the clients of Ross and Associates, has not paid its audit fees for two years despite numerous discussions between Liona, their audit partner Ball, and the management of Boomers Pty Ltd. Boomers Pty Ltd\'s management has promised the fees would have been paid before the audit report for this year has been published, Liona rang Ball this morning to ensure that the audit report was not issued because Boomers Pty Ltd had paid only 10 percent of the outstanding account. She discovers that Ball is about to sign the audit report. 4 Required: (a) Explain the ethical problem in this case. Why is it a problem? (4 marks). (150 – 200 words) (b) What can be done about it? (3 marks) (50 – 10
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