Sulaiman & Johari audit firm is determining whether to accept an audit engagement with Cute Things Ltd. As this would be a new engagement the audit firm sought the clients permission to contact the current auditor. The client did not give their permission, explaining that they did not want the current auditors to know they were thinking of changing.

Recently Cute Things Ltd had been in the media for management not disclosing an environmental disaster that occurred at one of their plant sites. The incident is still under investigation but if the company is found to be at fault then they may be subject to numerous lawsuits from the many private landholders near the plant.

From the information provided above, identify any reasons for not accepting the audit engagement with Cute Things Ltd.