10 Feb You are a sole practitioner who used to provide a
You are a sole practitioner who used to provide a range of accountancy services for a smallcompany (Company A) that owns a hardware shop in the town where you practice. Following abrief retendering process, the client chose to engage an alternative firm of accountants. Bothyou and the other firm had been asked to tender for a range of services, including thepreparation of year end accounts, tax compliance work, and a due diligence exercise in respectof the intended purchase of a small hardware business in the neighboring town. You believethat you were unsuccessful in the tendering process on the basis of cost alone, as Company Ais not very profitable, and suffers from the competition of the other hardware business that itintends to acquire. You are the continuity provider for another local sole practitioner. Twomonths ago he suffered a heart attack, and so you are currently acting for a number of hisclients. He is not expected to resume practicing for another two months. One of the clients ofthe incapacitated practitioner (Company B) operates a shop selling electrical goods. Thedirector and majority shareholder has called you to arrange a meeting to discuss a businessventure that he is considering. At the meeting, the client explains that he intends to make anoffer for the same small hardware business that Company A is seeking to acquire. He is awarethat there is another bidder for the business, but is unaware that it is Company A, or thatCompany A used to be your client. When the meeting is over, you start to feel uneasy. You wantto help Company B and provide a valued service on behalf of the practitioner for whom you arethe continuity provider. But you realize that you are also in possession of confidentialinformation concerning the plans of your previous client. You are aware of Company A’sproblems and its motivation for wishing to acquire the business.Required in resolving ethical dilemmasThis case study is compatible with the ethical codes of the CCAB member bodies, which arederived from the Code of Ethics for Professional Accountants issued by the International EthicsStandards Board for Accountants (IESBA).The case study illustrates the application of the conceptual framework’ approach to resolvingethical dilemmas. Based on the case, please provide the following fundamental principles of:? integrity,? objectivity,? professional competence and due care,? confidentiality, and? professional behaviorAfter providing information based on the that fundamental principles, answer the following:? What/who are the considerations in this case?? What could be the possible course of action in this case?