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The audit manager (who works for W&S partners (the AUDIT FIRM) for Cloud 9 Inc. (the CLIENT) has discovered the following facts and has requested
The audit manager (who works for W&S partners (the AUDIT FIRM) for Cloud 9 Inc. (the CLIENT) has discovered the following facts and has requested your help to document and assess the factors that affect the client acceptance decision. A. The finance director of Cloud 9, David Collier is married to a distant relation of Paul Nethercott, a partner in W&S Partners' consulting department. B. The consulting department at W&S partners has quoted on an IT installation project at Cloud 9. The fees from this project, if the tender is successful, would be twice the size of the audit fee. C. A survey of audit staff at W&S Partners has revealed that 30% have purchased Cloud 9's products (basketball shoes) in the past. D. Four members of the IT department at W&S Partners have shares in retailers that sell Cloud 9's products. In each case, the shareholdings were disclosed on the firm's share register, and the size of the shareholding is deemed material under W&S Partners' ethical guidelines. E. One of W&S's staff associates on the Cloud 9 audit worked as the payable supervisor at a division of Cloud 9 for the first six months of the fiscal year. He then joined W&S so he could pursue a public accountant's license. Type of potential Assessment of threat, incl. relevant Additional actions needed if any, to threat case facts appropriately assess threat Familiarity threat A Self review B Self interest threat D imtimidation WANNNNNNNNNNNNNNNNN
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