You are a manager in Neeson & Co, a firm of Chartered Certified Accountants, with three offices and 12 partners.

About one third of the firm’s clients are audit clients, the remainder are clients for whom Neeson & Co performs tax, accounting and business advisory services.

The firm is considering how to generate more revenue, and you have been asked to evaluate two suggestions made by the firm’s business development manager.

(i) An advertisement could be placed in national newspapers to attract new clients. The draft advertisement has been given to you for review:

Neeson & Co is the largest and most professional accountancy and audit provider in the country.

We offer a range of services in addition to audit, which are guaranteed to improve your business efficiency and save you tax.

If you are unhappy with your auditors, we can offer a second opinion on the report that has been given.

Introductory offer: for all new clients we offer a 25% discount when both audit and tax services are provided.

Our rates are approved by ACCA.

Required:

Evaluate each of the suggestions made above, commenting on the ethical and professional issues raised. (8 marks)