Accounting Principle Letter 2022

Running head: ACCOUNTING PRINCIPLE
Accounting principle
Name of the student:
Name of the university:
Authors note:

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ACCOUNTING PRINCIPLE
MEMORANDUM
To: The director
From:
CC:
Subject: Maintain APES 110 Code of ethics in profession.
Date: 26th September 2019
This memorandum is based on APES 110 code of ethics and relate to the professional
accountants and other professional accounting code. According to APES 110 code of Ethics
of professional Accountants, an accountant needs to follow a proper code of ethics while
performing audit work that influences a positive effect in the professional judgements.
According to the law of ethics, a professional need is there to expertise in his performance
while performing his duties. Julia, the expert investment decision provider, should handle this
issue by keeping in mind the “fundamental principles of professional ethics”.
By the provisions and principles that are issued under APES 110 code of ethics the
Fundamental principles of a professional are as follows:
Integrity: According to subsection 111, it is generally implied that an accountant needs to be
straightforward as well as honest in his performance. While performing his duties and
responsibilities, he should not allow any biasness on individuals. A professional shall not
wittingly be related to returns, reports, communications or different info wherever the Clients
believe that the information is Contains a significantly false or dishonest statement, Contains
statements or info provided recklessly and obscures needed information wherever such
omission would be unfair.

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ACCOUNTING PRINCIPLE
Objectivity: According to subsection 112, while performing the duties, an accountant should
disallow his personal feelings or prejudices, which is probably can make some negative
impacts on his performances. To effect proper professional judgments, an accountant needs to
reject the conflict in interest for decision impairment process. A business person shall need to
adjust the proposition of perspicacity, which is requires to be not to understanding a skilled or
organization judgment attributable due to any bias, conflict of interest or undue influence of
others. He shall not undertake knowledgeable Activity if a circumstance or relationship
unduly influences the professional judgment concerning that Activity.
Professional competence: According to the subsection 113, maintenance of knowledge and
skills as per requirements of professional bodies, continuation of education and experience of
work, being up to date with respect to regulation and standard.As per, with the principle of
professional competence a member should comply with a care. Member has the requirements
for maintenance of professional knowledge as well as level of skills to make sure that client
has received with professional activities those are competent. On the basis of current
technical as well as professional standards and also with respect to legislation that is relevant.
Confidentiality: According to subsection 114, the limit for disclosing into to outside people
of workplace understood as an impact of employment disallowed to use info that is
confidential as per other person advantages. With the principle of confidentiality accountant
should be complying with that has a requirement for respecting the privacy by accountant for
information gained due to professional as well as businesses relationship. For the possibility
related to inadvertent disclosure inclusion of social environment and business associate to
very close to the family of accountant in that case accountant should be alert. Accountant is
needed to maintain further information confidentiality within the organization. An accountant
also required to maintain the confidentiality of the information disclosed by a prospective
member or operating business.

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ACCOUNTING PRINCIPLE
Professional behavior: According to the subsection 115 it is required to deal with rules and
regulations without harming profession’s reputation, remain honest with respect to
representation for current clients, not undermining reputation or work quality which is
produced by others, not to claim for providing services that cannot be provided by them or
qualification which they do not have.
The general situations in which the members are conducting their operations might be
create threats in accordance with the essentials principles. As per the section 120, the
members are required to maintain the conceptual framework along with the fundamental
principles that comply with the public interest. Normally such conceptual framework
specifies certain approaches that relate to the recognition of probable warning along with the
essentials principles. The need to evaluate the warning also provide some address to
eliminating the probable threats.
A new client who is approaches to Julia for advise him about the investment in a start-up
business. Such business is coincidentally belongs to Julia’s husband, Daniel Brady.
According to the APES 110, Julia should advice that person in a professional way and
without any biasness and with maintains the ethical principles. First of all, the new client
should go through the background of a start-up business. The client should follow such
factors while evaluating the investment; about the size of the market, team of the start-up
business, Product that will manufactured and the demand of such product, the valuation and
price estimation of such product, the probable competitors, market conditions, publics
demands etc.
In fundamental principles, the professional accountants are operating a specific threat
which is compliance by the circumstances. It is unbearable to define the each and every
situation that creates and warning to accordance with in the specify appropriation and

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essential principles. According to the, work assignments and the nature of appointment may
consequently, and differ, the different warning are maybe also created and required to the
different types of application of safeguards. Therefore, the APES 110 code of ethics accepted
the conceptual framework that is needed for the member of evaluate, address threats, and
identify to compliance the essential principles. So, the APES 110 code of ethics approach the
conceptual framework and assists the member to comply the ethical requirements of the
APES 110 code of ethics, and their responsibility is an act to the public interest.
As well as the threats are identified the risks and compliance by the essential principles
and based on the evaluation of that warning, were acceptable level are determines. So, the
clients are determined and appropriate by the safeguards are also available, and they can
apply to eliminate and warning them to an adequate level. In addition, the clients shall
exercise the professional judgment and make into the account were a piece of reasonable
information is available. So at the time of clients, could be likely to conclude the warning that
could be removed by an acceptable level. Such as those compliances are the fundamental
principles, and it is not compromised.
According to the Apes 110 code of ethics, an accountant needs to perform his duties
along with some proper code of ethics. In case of conduct his performance an accountant
need to be expertise in such operations. In the other words while an accountant is performing
his duties he needs to know every accounting principle accordingly so that he could able to
perform his operations diligently. In accordance with the same manner a professional who is
expertise in providing investment decisions need to operate particularly such types of
operations only. However it is not mandatory that only the expertise can only able to perform
such operations, it only implies that the professional who will conduct the operations must
consisting some ideas relating to this particular field.

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Under the same code of ethics, an accountant is not required to express any biasness
while performing his duties. Here Julia is expertise in providing investment decisions; in such
case, it would be better for her clients to take required business decisions from her. However,
there are several numbers of expertise, which exist in that audit firm but for providing the
relevant investment decision purpose Julia, are the only expert who belongs to particular
expert quality in business investments purpose.
It can be concluded from the above discussion that while performing any business
decisions an accountant need to follow proper code of ethics as per Apes 110. The important
factors that was mentioned in such ethics report, is required to follow by an accountant in
case to perform his duties. Such ethical factors are not providing any biasness or unethical
elements that influenced the performance of an accountant negatively.
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