Question Tag: ICAN Code of Conduct

Nash Investigations Limited specializes in conducting investigations for corporate clients. It employs ex-police officers, security consultants, IT, and fraud specialists. Nash Investigations recently dropped its firm of auditors and has approached your firm to participate in a tender process for selecting the new auditor. You are a manager in the audit firm and will be working with a senior auditor on this assignment. The senior auditor has never been involved in a tender process or appointment of a new auditor. You have been provided with the following information:

1. Nash Investigations is a major service provider to your firm, particularly in the provision of IT and fraud consultancy.
2. Nash Investigations has acrimoniously dropped their previous auditors and is withholding fees, pending the resolution of a number of issues, particularly accusations concerning the auditors’ competence.
3. Nash Investigations is currently facing a hostile takeover bid from Technical Investigations Group, a company also audited by your firm.
4. Media reports of a fraud allegation have been leveled against one of the directors of Nash Investigations.
5. One of the partners in the audit firm is also a director of Nash Investigations.

Required:

Prepare briefing notes to explain the following matters to the audit senior:

a. The audit tendering process in terms of the stages that the audit firm will go through should it decide to participate in the tender.
(5 Marks)

b. The requirements of the ICAN Code of Conduct on advertising and publicity.
(5 Marks)

c. The requirements of the ICAN Code of Conduct on fees.
(5 Marks)

d. The impact of each additional piece of information provided above and how this information would influence your decision to participate in the audit tender for Nash Investigations.
(5 Marks)