Scenario based Question Michael Fox is a promising senior manager beginning his tenth year at his audit rm. Michael has been a steady performer during his career and is known for his technical and personal skills. However, not all of the firms partners are enthusiastic about Michael. i-ils tra cl: record for bringing In new clients has been marginal. This weakness has not stopped Michael from moving up the ladder, but slow expansion in the client base has meant that the firm has not made a new partner for three years. Michael is well aware that his ability to bring in new clients ls critical to his aspirations to become a partner. Ffl Manufacturing Ltd lPRi, a large stationery manufacturer, has decided to put its audit and related accounting services out for tender. Fft's current auditor performs signicant non-a udit services. In fact, fees for non-audit services are well In excess of the audit fee. Michael has been given primary responsibility for developing and presenting the tender to Fan's board of directors. He has nearly completed preparations for the presentation and has discussed all the specifics with two partners who will have a signicant involvement in servicing the audit and related service needs of Pit, should the film be successful In Its tender. As required by the board of PQFI, a detailed outline of the proposal presentation and itemised preliminary budget were submitted four weeks In advance of the presentation. [in the Thursday evening before the presentation, Michael's wlfe receives a call from her sister, Sandra. Sandra's flat mate, Suzanne, Is the secretary of F's managing director. Suzanne had noticed that one of the proposal presentations was going to be done by someone named Michael Fox and asked Sandra whether it was the same Michael Fox who was married to Sandra's sister. Sandra had said that It was, and Susan ne had begun to tell her about some of the proposals. Suzanne had said that she had noticed severalthings about the managing director's evaluation of the proposal submitted by Michael's firm. Firstly, the bid was significantly higher than one of the other bids. Secondly, the managing director had mentioned two Items of major importance that had been left out of the proposal. Suzanne could not remember what these two items were off the top of her head, but she told Sandra that she would be willing to run off a copy of the memo if Sandra wanted her to. Michael's wife tells him about the call from Sandra at dinner that evening