a) the contentions that help the choice to acknowledge Tierra collaboration as a customer are the

accompanying:

**In evaluating some commitment may include more danger than others, in such a circumstance,
reviewers could face further challenge by planning a nittier gritty review program. For this, inspected
would raise the review charge in like manner.

**Auditor ought not deny tolerating a commitment only on the grounds that it is an extreme one.

**Lewis Edmond conceivably has sufficiently developed to have a conclusion where he would not
include in sketchy exercises.

#Second step

b) the contentions against acknowledge Tierra adjustment as a review customer are followings.

**When the inner income administration (IRS) demonstrates that Edmond needs satisfactory
uprightness then it is on the whole correct to connect him with this organization.

**For an examiner, an administration misrepresentation is very hard to identify by a normal review

#Third step

c) As we would see it the choice to acknowledge customers commitment just relies upon the degree or
level of the firm is happy to acknowledge. since all the data identified with at the Edmond shows that he
is a man of honesty, we can acknowledge the review commitment and increment the review techniques
in like manner, on the off chance that it appears to be high danger it is engaged with this. in the event
that the principal level shows in suitable conduct from Edmond which doesn't uphold the review, at that
point it is smarter to leave the review commitment.
a. Present arguments supporting a decision to accept Tierra Corporation as an audit client.
The arguments supporting a decision to accept Tierra Corporation as an audit client are:-
1) In auditing the auditor has to take various risks and these risks varies with the type of
engagement. In such situations the auditor has to thoroughly study all the documents related to
the business to this he/ she can charge substantially.
2) Auditors should not say no to the risky engagement. For the growth of the firm he/she has to
take a substantial amount of risk and would gain some experiences so that it can be dealt in the
future if some similar situation will come.
3) The information about Lewis Edmond indicates he is a man of integrity and would not be
involved in questionable activities.
a.

Eventhough the IRS auditor disallowed the loss and Edmond was assessed a civil fraud penalt
10 years ago as given in the case, Presently, Tierra Corporation is successful, profitable, and
committed to growth. Also, Tierra Corporation was highly regarded by its banker and its
attorney, and the Dun & Bradstreet report on the corporation reflected nothing negative. So
there is nothing problematic in accepting Tierra Corporation as an audit client.

b.

Althogh Tierra Corporation was highly regarded by its banker and its attorney, and the Dun &
Bradstreet report on the corporation reflected nothing negative & though Tierra Corporation is
successful, profitable, and committed to growth, the fact that IRS auditor disallowed the loss and
Edmond was assessed a civil fraud penalt 10 years ago as given in the case cant be ignored for
the sake of maintaining Integrity & Independence as an auditor.

It would be a wise decision for Tower & Tower to not accept audit concerning the uncertain
future course of action if any by Lewis Edmond which may possibly result in compromising
Integrity, Independence & Accountability as an auditor.

c.

Since Presently, Tierra Corporation is successful, profitable, and committed to growth. Also,
Tierra Corporation was highly regarded by its banker and its attorney, and the Dun & Bradstreet
report on the corporation reflected nothing negative. Accepting the audit of Tierra Corporation
(Lewis Edmond) will not be a problematic if audit is performed on the basis of professional
skepticism considering the 10 year ago civil fraud penalty. Each & every transactions must be
observed adequately by applying standard & quality audit procedures on each and every aspect
without compromising Integrity, Independence & Accountability as an auditor.
a. Accepting Tierra Corporation as an audit client

1. Lewis Edmond and his business Tierra Corporation can be trusted as he is the
chairman of the board of a local civil organisation and holds a high repest among the
memebers of the community
2. Tierra Corporation sounds to be successful, profitable and committed to growth.
3. By auditing such a high profile client, Tierra Corporation can get a substantial audit
fee.
4. Tierra Corporation was highly regarded by its banker and its attorney, and the Dun &
Bradstreet report on the corporation reflected nothing negative.
5. Edmond would have probably matured to a point where he would not engage in any
unethical and illegal activities after reaching such a high profile.

b.Not accepting Tierra Corporation as an audit client

1. Tammy porter is a new partner with the regional CIA firm Tower & Tower and taken
up the responsibility as one of the board of directors of a local civic organization. With
such a strong professionally responsible profile, Porter should not recommend Tower &
Tower to accept the audit proposal.
2. Edmond’s former tax accountant, Bill Turner's opinion about Tierra Corporation is not
positive pointing to the earlier IRS audit. As a former tax accountant of Edmond, turner
will know the ways by which Edmond will evade taxes and policies.
3. Edmond was assessed a civil fraud penalty which shows his business ethics.

c.Conclusion

Though Edmond holds great respect in the society, his previous tax evading activity and
the following civil fraud penalty paid by him shows that he is not a person to be trusted
for the audit proposal. So it is better for Tierra corporaion to decline the audit request
made by Edmond.
a. Present arguments supporting a decision to accept Tierra Corporation as an audit client.

The arguments supporting a decision to accept Tierra Corporation as an audit client are:-

1) In auditing the auditor has to take various risks and these risks varies with the type of engagement. In
such situations the auditor has to thoroughly study all the documents related to the business to this he/
she can charge substantially.

2) Auditors should not say no to the risky engagement. For the growth of the firm he/she has to take a
substantial amount of risk and would gain some experiences so that it can be dealt in the future if some
similar situation will come.

3) The information about Lewis Edmond indicates he is a man of integrity and would not be involved in
questionable activities.