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Hi Mike. i am here with another question.
Mike please tell me in detail what are the commercial issues. because some times examiner use this requirement:
Identify and discuss the ethical, commercial and other professional issues raised, and recommend any actions
that should be taken .
Question is Raven Co from june 2012Commerce is defined as “Exchange of goods or services for money or in kind, usually on a scale large enough to require transportation from place to place or across city, state, or national boundaries”
In the context of a P7 question, I think we can take it as being synonymous with “business” or even “profitable”
Wasn’t this a question of considering the trade-off of continuing as auditor or giving that up and instead providing no-audit services
So can we accept “commercial” as being money-orientated?
itx means commercial issues are those which have a financial effect on the firm. means which affect revenue of firm. ????
As in question Raven, in Grouse co. case, commercial issue will be: if audit firm entered in business relation with customer (formation of accounting and tax software) then firm should resigned from audit services of that client in that case firm will lose its significant customer and hence a financial loss occur. Mike please tell me my understanding is correct????
“As in question Raven, in Grouse co. case, commercial issue will be: if audit firm entered in business relation with customer (formation of accounting and tax software) then firm should resigned from audit services of that client in that case firm will lose its significant customer and hence a financial loss occur.” …..
….. and that loss should then be balanced against the income from the accounting and software development
Those would be the two sides of the same commercial issue
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