1. You are working as an auditor at Boren Ltd. You have been asked to issue a report regarding an audit client, Storey Co, which is trying to be listed on the stock exchange market in December 2023. Storey Co, for the past nine years, has been an audit client of Boren Ltd, also preparing financial statements to 31 December 2021. 
2. During the past nine years, the senior partner at your firm, Walter Stevens, has taken much Q P - A S R - 0 0 1 | R e v 0 0 0 E f f D a t e: 1 7 - 0 5 - 2 0 2 1 responsibility for the audit, thereby increasing the total fee income from the client to the level where it became 20 % of Storey Co total fee income as compared to 17 % in the previous year. Apart from performing audits on annual basis, your company, Boren Ltd also provides bookkeeping and accounting services to Storey Co. 
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4. The accounting service, as well as the bookkeeping services, includes duties such as the preparation of weekly and monthly payroll for Storey Co and thereby maintaining all those financial records available. In preparation for the process of getting listed on the stock exchange, the managing director of Storey Co has approached your firm and asked for your assistance in the preparation of the share prospectus document that will have to be used in the support of the company’s flotation. Your wife, Mary is also one of the individuals that are working in the accounts department for Storey Ltd as the payroll and accounts clerk. 
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6. The contents of the prospectus will include the following elements: -Previous financial statements prepared up to December 2021 -Forecasts of profit levels for the next 5 years -A brief list of key risks of the business Currently, Storey Co is reviewing the audit appointment and therefore is looking for an audit firm that will be capable of assisting them to take them through the process of listing and also to provide them a wide range of services in the future. 
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8. Required: 
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10. a. Identify and comment on the ethical and professional issues that may arise as a result of Boren Ltd agreeing to provide services to Storey Co. 
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12. b. Suggest the safeguards that can be put in place by Boren Ltd to cater for the issues that you identified and commented above.

Answer rating: 100% (QA)

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