You are an audit partner with R David & Associates, a large and experienced audi

Question

You are an audit partner with R David & Associates, a large and experienced audit firm. You have been approached to accept the audit of Darwin Pharmaceuticals Pty Ltd (DPPL), a medium-sized chemical manufacturer. The manufacture of the chemicals results in highly toxic waste and DPPL 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 DPPL and its management that you should consider before making the decision to accept the engagement.

Explanation / Answer

Following are the Key ethical matters regarding the decision to accept the engagement.

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