You, Ronald and Len 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 Ronald$$s office. Ronald 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.

We were issued a subpoena regarding a lawsuit with Ajax Corporation. You remember $$ 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.

We accepted a TTL Limited as a new client. As you know, Len$$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, Len 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.

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!

Lastly, due to the increase in the client base, I have interviewed a few third year university students who could be hired to perform most of the small audits. I$$ve put their resumes on yyour desk to review sometime this week.

So$,$ what do you think?

 

 

Required:

Prepare a response to your partner, Ronald.