Audit firm from accepting the engagement

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Reference no: EM13184347

Clements & Partners are the audit firm of Manufacturing Co. and have been for 3 years. The audit firm is considering if there are any ethical or legal requirements that would prevent them from accepting the audit engagement of Manufacturing Co. again this year. The audit partner has noted the following information which may be relevant to this decision.

I. One of the junior staff members of the audit firm is related to a supervisor at Manufacturing Co.

II. One of the audit partners owns 100 shares in Manufacturing Co.

III. Clements & Partners provided taxation services to Manufacturing Co. in the last financial year.

IV. Frank Thomas, one of the audit partners at the firm, is the Uncle of one of the new directors of Manufacturing Co.

V. The audit partner on this engagement for the last 3 years has been James Underwood.

Identify if any of the above would prevent the audit firm from accepting the engagement.

Reference no: EM13184347

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