The firm in carrying out the new assignment needs to consider some ethical issues. Discuss the ethical issues involved in accepting the new assignment. Professional Ethics can be Rules based or Principles based. Describe the differences between the two approaches to professional ethics.
Question 5
a) Michelle, Melissa and Marvellous and Co, are the auditors to Frank Ventures Limited, a chemical manufacturing company at Hatfield. The firm has carried out audit for several years on the Company. A request was recently made for the company to also carry out compliance advisory services, financial reporting valuation services and tax planning.
Required:
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The firm in carrying out the new assignment needs to consider some ethical issues. Discuss the ethical issues involved in accepting the new assignment.
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Professional Ethics can be Rules based or Principles based. Describe the differences between the two approaches to professional ethics.
There are many advantages to using an audit firm for advisory services. Audit firms have access to a wealth of knowledge and experience that can be used to advise clients on a variety of issues. They also have the resources to conduct research and analysis to support their advice. In addition, audit firms are subject to professional standards and are required to maintain confidentiality, which gives clients a sense of security.
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