Assume you are have been appointed as an auditor of a well established business entity which is generating significant profits every year and is well regarded by the general pubic. Upon signing the letter of engagement the CEO indicated that they are willing to pay you an extra $80,000 if your audit opinion will state that there were no internal control issues and the entity complied with all applicable accounting standards. 

What are the ethical issues here and how would you proceed with the appointment?

Answer rating: 100% (QA)

There are several ethical issues present in this scenario including Independence Maintaining independence is crucial for an external auditor Accepting ... View the full answer