Identify what ethical issues are involved

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Reference no: EM133209450

Daniel is a senior auditor and a member of the team auditing a long-standing client, the listed public company Pharmacy Ltd. Pharmacy Ltd has just announced a takeover bid for Subway Ltd. Daniel's wife has a substantial shareholding in Subway through her self-managed investment fund. Daniel did not know about the takeover bid until he read it in the newspaper over breakfast one morning. Daniel's wife is very worried and asks him if he will be dismissed because of this.

Ruby, the managing partner of the auditing firm, has found that Pharmacy Ltd has not paid its audit fees for two years despite numerous discussions between the auditing firm and the management of the client. Pharmacy Lt's management promised the fees would be paid before the audit report for this year was issued. Ruby rang Daniel this morning to ensure that the audit report was not issued.

1. Identify what ethical issues are involved. Explain why.

2. Advise the options available and what can be done.

Reference no: EM133209450

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