You, Joshua and Jeremy are all partners in a CPA firm in Toronto, Ontario. You have been close friends since university and the three of you set up office together 5 years ago after all three of you received your Chartered Professional Accountant designations (CPAs). The office has been running smoothly and growing over the last few years. For the first time, you decide to take a vacation with your family.

After two weeks away, you return and walk into Joshua's office. Joshua starts to fill you in on the last two weeks.

Welcome back! I trust your vacation was amazing. Things have really been happening while you've been gone. Let me fill you in on the highlights.

1. WewereissuedasubpoenaregardingalawsuitwithAjaxCorporation.Youremember-the one where the company defaulted on the loan. We quickly typed up a response and informed them of our need to respect client confidentiality. We included the statement that we will not be providing any information in regards to this lawsuit.
2. We accepted a TTL Limited as a new client. As you know, Jeremy's wife is the CFO at TTL and she called last week to ask for a quote on performing a year-end audit. Due to the independence issue, Jeremy let me speak to her and I gave her a quote for performing the year-end audit. This is such a great opportunity for us! I based the fee on the amount we charged a similar client. I expect the fee will be a little low this time around, but we can increase it for next year.
3. We sent out a brochure to the major public companies in town, letting them know that our firm is "the best in the region". You should see the brochure - it looks great!
4. Lastly, due to the increase in the client base, I have interviewed a few third year University of Windsor students who could be hired to perform most of the small audits. I've put their resumes on your desk to review sometime this week.

So, what do you think?

Required:

a response to your partner, Joshua for each of the 4 independent items from above.