Explain the ethical issues arising for the audit firm

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Ronnie San, a trainee ISCA Chartered Accountant, is working on the external audit of Persow Ltd (Persow). Ronnie previously worked on the external audit of Majin Ltd (Majin), a car fleet management company. Persow is searching for a new car fleet management supplier and Ronnie has proposed that his audit firm recommends Majin to Persow in return for a fee from Majin for the introduction.

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Problem 1: Explain the ethical issues arising for the audit firm in respect of Ronnie's proposal.

Reference no: EM132774704

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