Acceptance of Audit Engagement

During the financial year 2020/2021, you are one of the audit partners with Summit and Associates CAs, a large and experienced audit firm. You have been approached to accept the audit of Chem Safe Ltd (Chem Safe), a medium-sized chemical manufacturer. The manufacture of the chemicals results in highly toxic waste and Chem Safe is currently under investigation by the Environmental Protection Agency for a significant spill of toxic chemicals into a nearby river. The media have reported that senior employees were allegedly involved in trying to cover up the spill. Required: Identify and explain the key ethical matter regarding Chem Safe and its management that you should consider before making the decision to accept the engagement.