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Question - Azwan, an audit senior at Johan, Aidil & Partners is assigned to audit a new client in Sarawak. The client operates a resort in Kuching, Sarawak and is listed in the Main Board of Bursa Malaysia. Azwan is not familiar to audit hospitality business. He is not sure of specific risks involved for the business. However, he is reluctant to seek advice from his manager because he fears it may affect his performance appraisal.
During his audit with this client, he noticed that the managers of the resort often have lunch in the restaurant at the resort. The managing director of the client informed Azwan that he can also have his lunch there for free as he desired. Azwan also discovered that one of the firm's staff owns 10,000 shares (10 lots) in the client company. This staff is not in the steam to audit the company. In addition, Azwan also notice that one of his team members plans to disclose some of the clients' information to his friend, a competitor in the hospitality business in Kuching. The clients are showing profitable trend for the past five years.
Required - Discuss the ethical and professional issues raised in the above case.
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