Murphy Tymshare Inc - 1343 Words

Auditors don t particularly favor to turn down current or prospective clients, especially when they own stock % in the company or if it is well-known company like Shell however being worried about their reputation and future works, they try not to audit dishonest clients, because it can have dire consequences for the auditor. In the case if auditor becomes involved with bad clients, it is necessary to weigh revenues earned from desirable clients against potential problems. The most important aspect in client acceptance is client s integrity. Before getting involved with the client, an auditor needs to learn about the business, environment of the business, management of the company, and any other things related to an acceptance of a†¦show more content†¦The tax firm can provide us information about client s business, financial stance, and on top of that information about major stock owner. Even though their perception may be somewhat different from reality, it is in some way hampers opinion of our audit firm. Integrity has been the most powerful weapon in any company, most important and oft-cited of virtue terms. The main owner of MTS can be described as impulsive with strong character. He has been party to many lawsuits, but of course we don t know for what reasons. However, as he holds 51% of the company s shares, we can t with certainty say that he possesses adequate integrity, as being given background information about his behavior, well it definitely draws attention/caution. Not only he is majority stockholder in MTS but also in MIC, that in turn gives even more information about deeds of MIC, it has been disciplined for misrepresenting its policies to consumers, violating reserve requirements and failing to file reports on time. Company s staff integrity is doubtful, however it can not be discussed any further, unfortunately we do not possess more of this type of information. Reputation and image is also crucial to the company as it creates automatically first impression of the f irm to current and prospective clients. As I mentioned before, MIC has already proved not to have a good reputation and image, because it mistreated its