Elise Lauziere is the partner in charge of the audit of Hertenstein Ltd., a large listed public company. Elise took over the audit from Marjorie Szliske, who has recently retired from the audit firm. Marjorie was a very experienced auditor and the author of several reports into ethical standards in business, but Elise did not regard her highly for her ability to grow non-audit service fee revenue. Elise sees an opportunity to increase the provision of non-audit services to Hertenstein Ltd. and thus increase her reputation within the audit firm.
Required
Comment on Elise's belief that increasing non-audit service fee revenue from her audit client would increase her reputation in the audit firm.
Which non-audit services would you advise Elise to avoid trying to sell to Hertenstein Ltd. because of the potential ethical issues for the audit firm?
Would it make any difference to your answers if Hertenstein Ltd. was a private company, not a listed public company?