QUESTION 1A

Papa Nti and Papa Nua who just qualified as Professional Accountants have decided to enter into professional practice under a firm name Nana Nua & Associates. These two have been trainee accountants of an Audit and Assurance firm for three years before qualifying. For their first engagement, the CEO of Merban Ltd. has nominated Nana Nua & Associates for appointment as auditors of his company though Merban Ltd was a former client of their former firm, Papa Nti and Papa Nua were never on the engagement team of Merban Ltd. As beginners Papa Nti and Papa Nua have intended to follow best practice as required by ISQC 1 Quality control for firms that perform audits and reviews of financial statements, and other assurance related services. However they are not clear of the matters that they have to consider in their acceptance decision according to the standard. They have approached you, a senior partner of their former firm for advice.

Required: Advise Papa Nti and Papa Nua on the matters that they may have to consider in relation to the acceptance decision on their nomination. (6 marks).

At Kolendi ACCA LLP, you will get the best quality audit process on this planet. Unlike some other firms, we care about you, our client. We go the extra mile you will always get the audit opinion you want. As well as audit we offer a range of other services, so come to Kolendi ACCA LLP you will not regret it. Simply the best. Have you had enough of your accountant charging you too much for poor quality services? Does your business need a kick-start? Look no further, Kolendi ACCA LLP provides the most comprehensive range of finance and accountancy services in the country as well as having tax team in the country who are just waiting to save you money. Still not sure? We guarantee to be cheaper than your existing service provider and for the month of January we are offering free business advice to all new audit clients. Drop in and see us at your local office for free consultation. Kolendi ACCA LLP, simply the best Required: The above is an advert which Kolendi ACCA LLP intends to post on its Official Website in an effort to boost its visibility in the Audit space. As an MBA (Accounting and Finance) student of UPSA, having taken a course in Advanced Audit and Assurance,

(i) Discuss the general position of the International Federation of Accountants (IFAC) on Advertising / Marketing of Professional Services (2 marks) (ii) Peruse the above advert and comment on the ethical and other professional issues raised in the intended Advert.