Craig Thorne works in a public accounting firm and hopes to eventually be a partner. The management of Allnet Company invites Thorne to prepare a bid to audit Allnet's financial statements. In discussing the audit fee, Allnet's management suggests a fee range in which the amount depends on the reported profit for Allnet. The higher the profit, the higher the audit fee paid will be to Thorne's firm.
What are the ethical factors in this situation? Explain.