this is not required reference

Answer
Question 1
Quality Control Issues
The first issue at this point with respect to quality control is the method in which the audit has been conducted post the refusal of the company to agree to the incremental audit fees respectively. It is fundamental for every service provider to be compensated in a fair manner for the respective services that they render to an organisation. It would be under a very logical construct to assume that an unfair compensation to a service provider may lead to a reduction in the quality of the services thus offered by him / her respectively. However, in case of auditors along with them exercising their professional acumen they need to follow in the name of ethics as prescribed by the Accounting Professional and Standards Boards. According to section 290.220 the fees to be paid to the auditor will be commensurate with the size of the operations which is not the case in this particular scenario as the company ahs refused to increase the fees with the expansion of audit scope. However, this gives the right to the auditors namely Zara and company to refuse the engagement as auditors of the coampny offering a notice for termination of professional relationship. The conduct of audit in a manner that leads to deficit of porcedures in order to save cost does not comply with the auditors ethical standards of offering complete services that offer a true as well as fair view of the financial statements to all of the stake holders. Secondly, the movement of certain work to the less expensive task to off shore offices in other countries is not against the woring ethics per se. However this should not be resulting in compromise of data security related aspects woing to the transmission across the globe. Hence, the coapny could assign portions of the work to off shore offices without impacting either the quality of work or the confidentiality related clauses pertaining to the agreement executed with the client respectively. Hence, the process of outsourcing as long as to resulting in breach of the contract terms with the Clint as well as compromise of audit quality would not be a violation of professional code respectively. Finally in case of the finance director of Simpson and company joining Zara team, the appointment firstly needs to be in a non-violate manner of service agreement that he had been holding with the worst while former company. Similarly an interest party in a company namely a stake holder / person holding an influential position cannot act for a third party under any capacity as he is in a position to influence the company in a manner that is detrimental to the other stake holders according to section 290.27 of the act. This fact need to have been reviewed before offering him employment and he need to have sold the shares before joining Zara as a professional.
Question 2:
There are several remedial measures those could be adopted in...