1. You are a senior auditor in an auditing firm called KPMG. ABC company trade in eco-friendly bamboo products and have its head office in Ruwi, Muscat. The directors of ABC company wish to dismiss their current auditors due to certain reasons. The directors have approached your auditing firm to act as auditors. They are prepared to pay OMR 10,000 as audit fees, plus a bonus of one percent of the profit after taxation. ABC company has a poor reputation as regards employee welfare and also there is a high turnover of employees. The company's business practices have been previously investigated by the ministry of commerce and industry, but no action was taken against the directors of the company 
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3. Required: 
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5. 1. Comment on ethical and other professional issues you would take into account before accepting the nomination as auditors of ABC company. 
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7. 2. It is relatively a rare event, where the company changes its auditors. Use the internet – MSM website to download the financial reports of any company and identify an auditor change if any. Investigate the information provided by the management as reason for the change. 
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9. 3. Making use of the financial statements of any one company, prepare a table showing the net profit ratio and current ratio, for a period of five years. For the ratios calculated: 
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11. a. Indicate the potential risks the ratio and/or historical patterns may present. 
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13. b. Indicate two plausible explanations for why the ratios or historical patterns differ from those of the previous years.