You have recently been approached by a retail company, Canning Limited to provide audit and tax services. You have contacted the outgoing auditor to request for any matters which might prevent you from accepting the assignment. This request has been followed up with phone calls with no response received from the outgoing firm. You held a discussion with the company’s management team and you became aware that the last auditor resigned due to dispute over unpaid fees from the last audit assignment. The Management of the Company were of the view that the previous auditors were too materialistic. Required: Identify the professional issues that needs to be dealt with before accepting the audit assignment

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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). You have recently been approached by a retail company, Canning Limited to provide audit and tax services. You have contacted the outgoing auditor to request for any matters which might prevent you from accepting the assignment. This request has been followed up with phone calls with no response received from the outgoing firm. You held a discussion with the company’s management team and you became aware that the last auditor resigned due to dispute over unpaid fees from the last audit assignment. The Management of the Company were of the view that the previous auditors were too materialistic. Required: Identify the professional issues that needs to be dealt with before accepting the audit assignment
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