Teresa is the audit manager assigned to the audit of Recreate, a large quoted company. The audit has been on-going for one week. Yesterday, Teresa's husband inherited 1,000 shares in Recreate. Teresa's husband wants to hold on to the shares as an investment.
The Stewart Brice & Co pension scheme,which is administered by Friends Benevolent, an unconnected company, owns shares in Tadpole Group, a listed company with a number of subsidiaries. Stewart Brice & Co has recently been invited to tender for the audit of one of the subsidiary companies. Kermit Co. Stewart Brice has been the auditor of Kripps Bros. a limited liability company, for a number of years. It is a requirement of Kripps Bros' constitution that the auditor owns a token $1 share in the company.
Comment on the ethical and other professional issues raised by the above matters.