Question 3 The CEO of Keyzer Pic has told the auditors that he wants the audit work to be completed within one week because he wants the Audit Manager to accompany him to the bank to negotiate bank loan. The CEO said that if the external auditor refused to go with him to the bank to negotiate bank loan, he will cancel their contract and request the service of a new audit firm. Joseph Depper who recently graduated from Liverpool Business School with BSc Business Management has been recruited as an Admin Office. Since the Account Officer resigned two weeks ago because the company were unable to pay his last three months salaries, the CEO of Keyzer Plc wants Joseph to work as an account officer pending when the company recruit new account officer. Joseph will be handling complex tax issues and putting in place internal control procedures. Joseph has never studied any accounting subject. The CEO said that Joseph's salary will be doubled if he accepts to combine his admin role with account officer role. Joseph is keen to get his own property and he believed that doing both jobs (admin officer and account officer) will help him in two ways: 1) improve his skills and experience in accounting, and 2) help him raise the mortgage deposit needed for him to buy his house (property). Keyzer Plc wants to recruit new account officer in three months' time. The CEO wants Joseph's wife to be recruited for the role of account officer. Required: explain the ethical quality control and professional issues, and matters arising in the situation, recommending appropriate actions to be taken? (32 mark) 1 mark per valid point Total 32 marks Question 3 The CEO of Keyzer Pic has told the auditors that he wants the audit work to be completed within one week because he wants the Audit Manager to accompany him to the bank to negotiate bank loan. The CEO said that if the external auditor refused to go with him to the bank to negotiate bank loan, he will cancel their contract and request the service of a new audit firm. Joseph Depper who recently graduated from Liverpool Business School with BSc Business Management has been recruited as an Admin Office. Since the Account Officer resigned two weeks ago because the company were unable to pay his last three months salaries, the CEO of Keyzer Plc wants Joseph to work as an account officer pending when the company recruit new account officer. Joseph will be handling complex tax issues and putting in place internal control procedures. Joseph has never studied any accounting subject. The CEO said that Joseph's salary will be doubled if he accepts to combine his admin role with account officer role. Joseph is keen to get his own property and he believed that doing both jobs (admin officer and account officer) will help him in two ways: 1) improve his skills and experience in accounting, and 2) help him raise the mortgage deposit needed for him to buy his house (property). Keyzer Plc wants to recruit new account officer in three months' time. The CEO wants Joseph's wife to be recruited for the role of account officer. Required: explain the ethical quality control and professional issues, and matters arising in the situation, recommending appropriate actions to be taken? (32 mark) 1 mark per valid point Total 32 marks
