Lorenzo Lamas is the auditor for Falcons Crest Ltd (FCL), a winery situated in the Hunter Valley of New South Wales. Lorenzo is in the process of valuing the wine that is currently ageing in the barrels in the Hunter Valley (he is determining the valuation of the wine inventory that is in the barrels) and will need to stay for at least 5 days in July to complete the task of valuing the wine in the barrels. The valuing of the wine is important as it makes up approximately 30% of the total assets of FLC and must be completed by the first week of August to allow for sufficient evidence to be collected.

While Lorenzo is in the Hunter Valley, the director of FCL will be providing Lorenzo with accommodation and a motor vehicle for transportation free of charge for Lorenzo. Accommodation will be in one of the houses owned by FCL. FCL owns 6 houses which are on the FCL property. The houses are rented out to the public and the average cost is $3,000 per week to rent one of the houses.

Lorenzo is a fan of music and in particular loves the music of the famous Italian Tenor, Andrea Bocelli, who happens to come from the same town in Italy as Lorenzo. Bocelli is holding a concert in Hunter Valley in the first week of August. Bocelli will be staying in one of the houses on FCL's property when he is in the Hunter Valley. The director of FCL knows Lorenzo is a fan of Bocelli and has offered Lorenzo the opportunity to meet Bocelli in person and to attend the concert free of charge and to also stay in the house situated next door to the house Bocelli will be staying in.

Required:

With reference to the APES Framework, advise Lorenzo on what he should do to ensure he maintains the integrity of the audit of FCL. (Hint: Identify some of the ethical issues you believe exist from the facts in the case study).