You work for a firm of auditors which has seven offices throughout Oman. The firms largest client, in terms of fee income, is Mart plc, a company which has grown steadily through a mixture of organic growth and acquisition of companies in the same industry sector.

Your firm has acted for this client since its incorporation 20 years ago and in addition to the statutory audit, provides a range non-audit services including tax planning (for the company and its individual directors) and consultancy work in respect of Mart plcs acquisition policy.

Earlier this year, the finance director of Mart plc retired and was succeeded by a former member of your firms staff who had managed the audit of Mart plc for the preceding four years.

REQUIRED

Discuss the ethical and professional issues raised by the situation described above and identify the measures which should be implemented by your firm in order to mitigate any threats to objectivity which might arise.