1. Lisa is the managing partner of Rex and Associates, a small audit firm. Lisa's role includes managing the business affairs of the firm, and she is very worried about the amount of fees outstanding from audit clients. One client, Stream Pty Ltd, has not paid its audit fees for two years despite numerous discussions between Lisa, the audit partner, Rob, and the management of Stream Pty Ltd. Stream Pty Ltd's management promised the fees would be paid before the audit report for this year was issued. Lisa rang Rob this morning to ensure that the audit report was not issued because Stream Pty Ltd had paid only 10 per cent of the outstanding account. She discovers that Rob is about to sign the audit report.

Required

1. Identify and explain two ethical issues in this case.
2. Recommend one possible course of action that Lisa should take to resolve each of the issues identified in (i)
3. Debbie is an audit assistant currently undertaking university studies. While auditing the books of MTL Ltd, she comes across certain financial information that she believes will assist her in completing one of her university assignments. She copies the information and uses it in her assignment, carefully removing all reference to MTL Ltd in order to preserve the client's confidentiality.

Required

Outline the fundamental principle breached, and discuss possible alternative courses of action that Debbie should have taken in order to properly discharge her professional responsibilities