You are an audit senior working at Sceptic LLP (Sceptic), an accountancy firm with offices nationwide providing audit and a range of non-audit services. It is now August 2021, you are an audit senior and have been assigned the following work:

Part (a)

You are tasked with reviewing a couple of clients for re-acceptance:

• - Alma Scott has been an audit partner at Sceptic for 10 years and has been the partner responsible for the existing audit client Rex Plc, a listed client, for the past 5 years.
• - The directors of Tric Limited (Tric), an audit client of Sceptic, would like to grow the business and have identified a couple of companies they are interested in acquiring. The directors have asked whether Sceptic could carry out due diligence on both potential acquisitions to help them assess which one is the better investment. Either acquisition would require a new bank loan and the directors have asked whether Sceptic could review forecasts requested by the bank and attend a meeting in support of their loan application.
• Required: Explain the professional and ethical matters to consider when deciding whether to accept Rex Plc and Tric Ltd as clients and whether any safeguards can be applied.