Part (c) Discuss whether your firm could comply with Bruce’s request that you write a letter to SARS in an attempt to persuade SARS to waive the penalties and interest on the late payment of provisional tax.
ANSWER
The audit firm must refuse Bruce's request because he wants them to lie to SARS.
Lying is unethical: It violates the auditors' professional duty of integrity and honesty.
Conflict of interest: Writing the letter would make the auditors an advocate for the client, compromising their independence and objectivity.
Reputation risk: Lying to a tax authority is unlawful and would severely damage the firm's reputation and credibility.
There are no acceptable ways to fulfill this request; the firm must decline.
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