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Page
Page 142 166
of 416
Monet Co Low done advertisement
Ca ) 7- marks
Balling
is in
draft
.

In advertisement other when it stated that Monet co

draft
is
services
guarantee
.

providers that
they provide poor quality to be cheaper than
existing
service
provider
.

Service G too It Audit should

represent risk G work
against
much is
charge fees
.

Professional behaviour to other service at client rather than other

refer ,
firm fees
.

Business advice is
to audit
providers .

offered
Superlative words are used in
draft clients which create a threat to independence .

advertisement like most comprehensive G Auditor cannot advocate client

, promote OE

tax words business Business to audit

provider Using superlative
advise
leading By giving
.
.

is there clients auditor will them

of integrity promote
an issue as are .

basis the Free consultation to clients

legitimate basis is
of
no on new
offered
which itself advertisement It is normal in
firm argue
as
a can in
draft industry
-

better than others to such consultation

they
as
offer free
.

that tax team done to understand needs client

wordings is
just waiting are
of
.

to Monet Co itself as
impression referred firm of
save an a
money gives
.

you
IF there would be Chartered Accountants which is

of guarantee
. no
planning Certified ,
wrong
available client to save because less than 50T
opportunity
on
any partners are

then this claim Monet 6 ACCA member At least 15

partner should be
money of
. -
.

will It Professional ACCA member in situation Monet co as

go false
is
against of
.
.

Behaviour have 30 Partners

that a
professional gives false they
.

statement .
(b) -
7 marks Scope audit G timelines need to be
of
Monet Co provided tax services to discussed with
Renier Co. so that can
they
.

its audit client Reni Co which understand audit 9 this will reduce
flow
or
of
.

creates Self Review threat Tax amounts their about intrusive audit Timelines
a complaint
. .

Monet Co will their claim that

calculated
by
. will
get subject
agreement
cover
they
to its own audit when Monet Co . will were disturbed when
busy .

conduct audit rs Audit team members audit should

previous
of of
.

Audit reminded Finance Director be sent

training as a
possibility exist
partner
on

This be intrusive due to

creates Intimidation more
for outstanding fees . an
they may getting
threat audit Skeptics level
skepticism level
for current
higher
m
.
.

year
G auditor be reluctant Statement finance Director that will
will
get affected
will
of , they
his seek alternative auditor their demands
if
issues as old does are an
in
identifying
not creates intimidation
outstanding .
are accepted an

undue
Reason overdue needs to be threat Auditor 9
fees feel influence may
.

of may
If Credit period was allowed
accept unfair demands in order to protect
investigated
.

to Reni or Co .
then it will create a self client .

Interest threat auditor

for as
they hold

a receivable in Client .
Audit cannot be

conducted with Self Interest

independently a .

decline Renier co
Politely
for future
.

Services unless does

previous are

cleared ,
so that Intimidation threat is

resolved .
 Gmarks Monet Co .
should a disclosure to both
give
-

If Monet Co will also conduct Pissaro Homer Winslow G Pissaro Co. that Monet is Ethics
of
.

, I

Co with Homer widow Co then it will

competitor audit This will resolve issue b Clean A
along doing
.
. .
.

create issues a common interest both entities were 2 Cheetah Co

Being of
as ,
.

confidentiality conflict
.

of
,

3 Coram Co
auditor two competitors Monet Co has ,
informed
.

of
.
.

to be If Homer Winslow Co.

of Pissaro Co. 4, Bunk Co
if
as one
careful of
u
.

information ,
any
.

client to then that audit 5 Chester Co

disclosed another one them objects on competitor
.

gets of
claim then Monet Co has to less G Kobra Co
client
from
a
file
.
.

may resign
.

However it can be that it is normal client 7

,
Moneta .

argued profitable
.

audit to conduct audit

for firms of

do have clients
competitors as multiple
,
firms
of
one
industry
.

Monet Co .
needs to consider that whether

have resources to conduct audit

they sufficient
two competitors , as both will
of they
similar skills audit they
as
require for belong

to
single industry
.

should teams
for
Monet Co . use
separate

Homer Window Co .
G Pissaro Co .
audit G

a
get confidentiality agreement ,
signed by
both team members to resolve
confidentiality

issue .