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Please be detailed in your answer. You are one of three partners who own and operate Marys Maid Service. The company has been operating for seven years. One of the other partners has always prepared the companys annual financial statements. Recently, you proposed that the statements be audited each year because it would benefit the partners and prevent possible disagreements about the division of profits. The partner who prepares the statements proposed that his uncle, who has a lot of financial experience, can do the job at little cost. Your other partner remained silent. Required: What position would you take on the proposal? What would you strongly recommend? Solution The proposal should be opposed and not to be accepted. The proposal should be strongly protested, since the auditor is a relative of a partner and the auditing work could have been biased. An independent auditor having no interest on the firm should be recommended for appointment. Otherwise the conspiracy or embezzlement may happen. .

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