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Auditing and Assurance - ACC300

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King's Own Institute (KOI), Australia

   

Auditing and Assurance (ACC300)

   

Added on  2020-03-07

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In this document, we will discuss two questions about ethical requirements whether they are or are not a breach of the ethical principle. The second question covers the management which has been excluded from the financial reporting about a contingent liability.

Auditing and Assurance - ACC300

   

King's Own Institute (KOI), Australia

   

Auditing and Assurance (ACC300)

   Added on 2020-03-07

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T117 ACC300 GROUP ASSIGNMENT1
Auditing and Assurance - ACC300_1
Table of ContentsT117 ACC300 GROUP ASSIGNMENT........................................................................................1Question 1....................................................................................................................................3Question 2....................................................................................................................................6References....................................................................................................................................82
Auditing and Assurance - ACC300_2
Question 1(a)The ethical requirements of APES 110 have been breached in this scenario as theprofessional ethics does not allow the practicing firm to disclose the information collectedduring the audit and assurance procedure about the client without taking prior permissionfrom him. Mortdale accounting firm has conducted audit of several public companies from where hehas collected working papers of the client. He has shared the information collected during theassurance procedure to peer reviewer Penshurst accountants for carrying out the assuranceactivity of mortdale. Although the information given was to conduct the working procedureof the firm and to check that all the procedure necessary for carrying out audit is beingfulfilled but it should not be shared without the permission of the clients. Therefore mortdale should have taken prior permission from his clients before providing theworking papers to his peer reviewer.(b)Yes, the ethical requirements of APES 110 have been breached by the CPA as well as by theaccounting firm. The accounting firm should not wholly rely on the words of the candidateapplying to the entity rather should try to collect information about his past engagements. Itis also important to know whether his interests are not in conflict with the objectives of theorganization. In this scenario the local accounting firm should have made research about Jan Dungog, aCPA before providing him job in the organization. The firm should have tried of takinginformation from his previous employer for the reasons about leaving his past job. Bycollecting this information the firm should have been able to get information about the truereasons for the dissociation of the person with his previous job and get to know about thestrength and weakness. So, the firm should have contacted the previous employer before employing Jan for theposition.(c)The practicing accountant has breached the ethical requirements of the standards as he is notallowed to solicit its clients about his other engagements and advertising about the other formof services he is providing. A professional accountant should be independent of hisobjectives and opinions. He should not be influenced by any factors while conducting his3
Auditing and Assurance - ACC300_3

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