ACC300 Assignment on Auditing & Assurance Services
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Auditing and Assurance (ACC300)
Added on 2020-05-28
ACC300 Assignment on Auditing & Assurance Services
Auditing and Assurance (ACC300)
Added on 2020-05-28
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Running head: AUDITING AND ASSURANCE SERVICESAuditing and Assurance ServicesName of the StudentName of the UniversityAuthor’s Note
1AUDITING AND ASSURANCE SERVICESTable of ContentsIntroduction......................................................................................................................................2Question 1........................................................................................................................................2Situation [a].................................................................................................................................2Situation [b].................................................................................................................................3situation [c]..................................................................................................................................3Situation [d].................................................................................................................................4Question 2........................................................................................................................................5Situation [a].................................................................................................................................5Situation [b].................................................................................................................................5Situation [c].................................................................................................................................6Question 3........................................................................................................................................6Situation [a].................................................................................................................................6Situation [b].................................................................................................................................7Situation [c].................................................................................................................................7Conclusion and Recommendations..................................................................................................8References......................................................................................................................................10
2AUDITING AND ASSURANCE SERVICESIntroductionAuditing refers to the process of inspecting the financial accounts of the businessorganizations in order to ensure the fact that they are free from material misstatements (Louwerset al. 2015). In this process, auditors have the responsibility to ascertain the level of materialitythat will be harmful for the companies. At the time of conducting the audit operations of thebusiness organizations, it is the responsibility of the auditors to comply with the code of ethics ofAccounting Professional and Ethical standards 110 (APES 110) issued by AccountingProfessional & Ethical Standards Board Limited (APESB) (apesb.org.au 2018). According tothis standard, the auditors are required to maintain the integrity of auditing principles and theyneed to be honest in this process. In addition, it is the responsibility of the auditors to beindependent from the any kind of interest in the property of audit client (Arens, Elder and Mark2012). It also states that the auditors are required to provide appropriate audit opinions aftercarefully analyze various audit matters. This report takes an honest attempt to analyze varioussituations related with auditing ethics, auditing independence and auditing opinions. Lastly, somerecommendations are provided based on the whole analysis.Question 1Situation [a]In the provided situation, the assurance of getting tax refund to the audit clients can beseen from Berowra Accountants through a special advertisement. The difference between taxpayment and tax owned is regarded as tax refund. Companies can avail tax benefits in case taxpayment is more than tax liability (Mendenhall et al. 2012). In companies, income, profit andtaxation are responsible for tax refund and the auditors have not role to play in tax refund. The
3AUDITING AND ASSURANCE SERVICESduties of the auditors do not include the guarantee of tax refund as the auditors are responsiblefor determining whether there is any material misstatements in the financial statements or not.The assurance of tax refund would breach the code of ethics of auditing. Thus, according toAPES 110 Code of Ethics for Professional Accountants, Section 130, this particular action ofBerowra Accountants has violated the principle of Professional Competence and Due Care inwhich the auditors has crossed the limit of audit profession (Han Fan, Woodbine and Cheng2013).Situation [b]According to the case study, Jamie Harvey conducts the audit operations of large publicfirms and has been asked to hold the position of treasurer of the local club. Athletic clubs fallunder the category of not-for-profit societies. APES 110 Professional Appointment, Section 210states that the auditors should determine that whether their new client appointment can harmauditing fundamental principles of ethics (Ottaway 2014). In regards to this particular case study,it is required to be mentioned that that Jamie Harvey will not violate any of the auditingfundamental principle of ethics by accepting the offer for the treasurer of local athletic club. Themain reason is that Jamie Harvey’s holding of treasurer position has no relation with his auditworks of large public companies. In addition, the appointment in any not-for-profit societies doesnot affect the fundamental ethical principles of auditing. For all these reasons, no ethicalprinciple of auditing will be violated in this case.situation [c]As per the provided situation, Monlec Ltd indicates to Pymble Accountants that theirpayment will be dependent on the delivery of appropriate audit report. This situation indicatestowards the Monlec Ltd’s demand of favorable audit report from Pymble Accountants. The
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