Department of Revenue

I would accept the engagement since as much as I had already cut all ties with the Department of Revenue, conducting the tax audit would give me a good chance of building good relationships with other clients who may be of great benefit to my private firm. It is also more ethical to build more good relationships with other clients since they are most likely to consider your expertise when it comes to conducting other similar business deals. Another ethical issue that I would consider by accepting the engagement is the need to serve mutual interests. From the details of the new engagement, I stand to gain much since I would be appreciated by 25 percent of additional collected amounts in property tax audits plus 50 percent of all first year tax penalties. The Department of Revenue will also benefit from my expertise; therefore, the new engagement will serve mutual interests. 

Client-related ethics and issues also enhances my choice to accept the engagement since by now it is evident that the Department of Revenue trusts my loyalty and expertise as much as tax accounting is concerned ( Bobek, Hageman & Radtke, 2010). To add on that, I would be least affected by the issue of client pressure since I had initially worked with the client for a period enough to know what they expect from my expertise. My credentials as a tax practitioner also encourages me to accept the engagement since I will not have to deal with the issue of whether to minimize the taxes or to prepare an accurate tax returns for the Department of Revenue. Since the engagement is lucrative, the urge to minimize tax returns in favor of individual clients will be minimal hence fostering the ethics and standards of my profession. Conducting a good tax audit would be of benefit both to my profession and to the Department of Revenue and this would open up other similar engagements from the client as I separately operate my tax accounting firm. 

References  

Bobek, D. D., Hageman, A. M., & Radtke, R. R. (2010). The ethical environment of tax professionals: Partner and non-partner perceptions and experiences. Journal of Business Ethics, 92(4), 637-654.