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BAAC 2203 Principles of Auditing - Case Studies Assignment Case No 1: You are an Accounting graduate from NCT and successfully completed ACCA qualification. Recently you are elected as a member of governing body or College Council. You are also nominated to the finance and buildings committee that awards building contracts. The membership of this committee includes a number of individuals with private sector experience and local businessmen. One is a local builder who has been a member in College management committee for a number of years and is well respected in the community and by the governing body. At the first meeting, the committee considers a report from College Dean about the condition of the college Auditorium and sets out a scheme of remedial building works with estimated costs. After discussion of the scheme, and recognizing the need to move quickly if the work is to be carried out during the summer vacation, the builder member in the council offers to do the work at a competitive price and the other members on the committee are minded to accept the offer. However, although the offer has been made, the council members are not considering the use of a formal tender process or making any reference to governance arrangements that could exist for tenders. As a professional accountant you are concerned that the college council is unable to demonstrate reasonable decision making, stewardship of public money and reputational risk. You are required to: a) Analyse the scenario, state the most applicable ethical principles for professional accountants and comment on their relevance to the context. b) Discuss the best possible course of actions