You are an audit manager in Lee & Co$,$ a firm of Certified Public Accountants. The

audit partner has assigned some clients to you for the audit of financial statements for the year ending $31$ December $2024.$ The following is the background information for three of them.

Apple Co is a new audit client. This private company makes and sells sportswear

locally. The company$$s finance director, Mary, does not think the audit is useful and

put it up for bid last year to save cost. Follow the rules of the bid, your firm proposed

that there would not be an interim audit.

Orange Co$,$ a client that Lee & Co has been auditing for $10$ years, runs a big

supermarket business nationwide. Lee & Co provided advisory services in $2023$ on

how to get their company listed on Hong Kong Stock Exchange. The directors of

Orange Co also expect that there would not be any negative criticism of the company$$s computerised system in the $2024$ year$-$end financial audit, as a detailed examination of the computerised system was performed by Lee & Co had been performed in $2023$ at their request.

Lee & Co has been providing audit services to Banana Co for seven years since you

helped them with a successful buyout. Banana Co is a company that offers

communication services and software solutions. Lee & Co gives them technical advice on financial reporting and tax services. Lately, management of Banana Co have asked Lee & Co to review potential acquisitions to make sure these potential acquisitions are good investments.

According to relevant Code of Ethics for Professional Accountants prescribed by the Hong Kong Institute of Certified Public Accountants $($HKICPA$),$ identify and discuss issues raised, level of significance, and recommend what action, if any, should now be taken by Lee & Co$.$in respect of:

a$.$ Apple Co$.$

b$.$ Orange Co$.$

c$.$ Banana Co