(c)

Homer Winslow Co
– Conflict of interest due to auditing Homer Winslow Co and Pissarro Co
– Normal to audit firms in the same industry
– Threat to objectivity
– Confidentiality threat
– Full disclosure to both clients
– Possible safeguards (½ each, 1 max)
– Consideration of resources available
– Possible resignation from one audit
Maximum marks 6
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