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Sally is a Chartered Accountant who works at City Slickers, a firm of public practice accountants. One of her new clients has requested Sally's assistance in relation to a complex taxation arrangement. Sally has no experience in this type of work but has accepted the engagement on behalf of City Slickers in order not to disappoint the client. She has decided to obtain assistance from John, one of Sally's friends who is also an accountant. John has his own accounting practice and has undertaken this type of work before. Sally is confident of John's professional skills, but she will not be able to review his work due to the highly technical nature of the engagement.
The City Slickers practice has a long-standing informal arrangement with John each retains 10% of any work that is referred to them by the other. These arrangements are strictly confidential and are not disclosed to the relevant clients.
Required:
Problem 1: Identify and discuss the ethical issues that relate to Sally, John, and City Slickers. Your discussion should include relevant references to APES 110 and an evaluation of the appropriateness of their behaviour.
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