Jupiter Industries Ltd., an established chemical manufacturer based in Vadodara, Gujarat, is listed on both the BSE and NSE. The company produces a…

Jupiter Industries Ltd., an established chemical manufacturer based in Vadodara, Gujarat, is listed on both the BSE and NSE. The company produces a variety of industrial chemicals and is a multi-faceted entity. M/s Pinnacle & Associates, a Chartered Accountants firm, was appointed to conduct the statutory audit for F.Y. 2024-25. CA Rishi was the engagement partner for the said assignment. He noticed that those charged with governance in the company are also involved in managing the entity. During the ongoing audit engagement, M/s Pinnacle & Associates had already issued the Limited Review Reports for the first and second quarters (Quarter 1 and Quarter 2). Before commencing the review for the third quarter (Quarter 3), the management informed CA Rishi that they would not provide access to a critical overseas subsidiary's books and records, citing confidentiality agreements with a joint venture partner. This imposed a scope limitation on the audit. CA Rishi considered this limitation likely to result in the need to express an opinion modification on the full-year financial statements and accordingly, he requested management to remove such limitations. However, the management refused to remove the said limitation. After following the due procedures applicable in the circumstances, finally, CA Rishi with his engagement team, concluded that the possible effects on the financial statements of undetected misstatements, could be material and pervasive so that a qualified opinion would be inadequate to communicate the gravity of the situation. Accordingly, he proposed to withdraw from the engagement after consulting with the senior partners of the firm as on 25th November, 2024. In its resignation letter, the firm mentioned professional pre-occupation as the reason for the resignation. Based on the above facts, answer the following: