Question No 1: (3+2+2+3=10 Marks) Assume that you are a newly appointed partner in your audit firm. Your first assignment was to handle the audit of your firms newest client, Marhoon Ltd. Marhoon Ltd. is a trading business that offers goods in a physical store and an on-line shop. The business has a young, modern vibe to it that it was a hit among young adults and teenagers. It is very important to have good relationship with this client since this will open-up many good business opportunities for your audit firm. You have already met Mr. Mohammed, Marhoon Ltds managing director. He is a fine, nice man and have good reputation in the community, even though he is still relatively young to be a successful businessman. You believed that your firm is lucky to have him as a client as you dont see any problem being their companys auditor. As you are nearly finishing review of your teams report you noticed an alarming observation made by the senior auditor. There was a large amount of taxes not paid that accumulated in the past 3 years. At that point you knew that the previous auditor did not mention anything about this in their past audit report. You are now concerned whether the company had never tried to resolve this issue with the tax authorities and if this problem comes out, the reputation of your client will greatly suffer. Required: Explain your answer to the following questions: 1. Which fundamental ethical principles in ISA 200 will be affected in this scenario? You can explain more than one ethical principle, if applicable. (3 marks) 2. Given the additional business you hope may be generated from your relationship with this client, is there additional pressure on you to please the client? (2 marks) 3. If the tax authorities discovered this issue later, would this impact on your firms reputation? (2 marks) 4. What could be the possible course of action? (3 marks) 300 words required