Assume that you are an independent auditor whoruns your own auditing firm. Majan Company wasyour client last year who engage anotherindependent auditor this current year because ofsome independence issues with your firm. Lastyear, you know that Majan Company was havingless profit because of competition with a newlyestablished company ·the Teejan Company which--is now selling their business. Because of thisreason, Majan wants to offer to buy Teejan. Twomonths ago, Home Depot Company became yournew client. Home Depot Company's managingdirector came to you to discuss that they intend tobuy Teejan Company. They know that there isanother company who wants to buy Teejan too, butthey are not aware that it is Majan Company. Theyalso don't know that you were Majan's previousauditor. You are aware of Majan's problems andyou know it will help them to recover profits ifMajan will be the one to acquire Teejan Companyinstead of Home Depot. Which ethical principleswill be least affected in this situation.a. Integrityb. Professional Competencec. Confidentialityd. Objectivity

The professional accountants need to follow the Code of Ethics at the international level released…

another company who wants to buy Teejan too, but they are not aware that it is Majan Company. They also don't know that you were Majan's previous auditor. You are aware of Majan's problems and you know it will help them to recover profits if Majan will be the one to acquire Teejan Company instead of Home Depot. Which ethical principles will be least affected in this situation.

another company who wants to buy Teejan too, but they are not aware that it is Majan Company. They also don't know that you were Majan's previous auditor. You are aware of Majan's problems and you know it will help them to recover profits if Majan will be the one to acquire Teejan Company instead of Home Depot. Which ethical principles will be least affected in this situation.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle.

Section: Chapter Questions

Problem 19RQSC

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