The auditor virtue should play a neutral role in this case that is to neglect personal consequences of the decisions and remain lawful to the profession by fulfilling obligations. The auditor should try to minimize the threats by establishing those possible threats which obstruct orthodoxy. Integrity should not be compromised if the auditor is virtuous and he should try to eliminate any kind of bias regardless of the worth of client. The relationship with the client whether its personal or professional should in no way disturb the course of action taken by auditors i.e. his decisions should remain unbiased. If the client is trying to force him to alter his expert judgments then the auditor should simply terminate the relationship rather than making compromise on the business ethics.
If the client firm defaults on the bank loan it will hurt the credibility of Positive Accounting Solutions and will bring troubles for the name of company. A strong determination for the protection of rules and regulations of accounting principles is required on the auditor’s part. The biased behavior of auditor will result in the discredit of expertise of accounting profession. If the client actually puts up the contract on bid then the auditor should try to gain facts about the client confidentially. All these things should be done confidentially without providing any information to the outside parties unless until it is beneficial for the auditing firm, but in this case too legal mandate to protect the information must be provided by the other party . The warranty to protect major sections that must be kept in view by the virtuous auditor includes section 110, 120, 130, 140 and 150. The auditor should remain determined and should try hard in order to avoid any possible intimidation from the CEO of Global Contractors. The CEO seems to be ready to go up to any extent and might do any unlawful thing to make auditor’s stand weak and to motivate him for the misrepresentation of financial statements. So in this scenario courage and determination of the auditor is of prime importance in order to tackle the issue successfully.