You are referred to a potential client by a former international partner. The potential client is extensively involved in various food commodities either in direct production or through deals with local producers to buy their produce:

extensive orchards and vineyards in South America

sugar producing in Pakistan and Kenya

rubber plantations in Indonesia.

In addition to this they trade extensively in futures related to their physical production and hedges in respect of their currency exposures. Most goods are priced in US$ on the international markets. This trading is carried on from Singapore and London although the London desk is relatively small.

The group is owned by a Lebanese family and most of the decision making rests with the father and son who between them control 90% of the main companies. A spreadsheet aggregating the various companies shows turnover of $1.2 bn

This client has never had a formal group and is looking for a firm which will carry out an audit but is also looking to restructure into a group which can be used as a basis for raising more capital possibly through a quote on the Luxembourg exchange. At present a variety of trade finance and commercial paper are used and they are looking to move their financing onto a longer term basis. They are also considering either buying or registering a small bank and want advice on this?

Is this a client you would accept as an audit client? What would you do before accepting it?