Audit Assignment: Ethical Issues and Auditor Independence

Audit Assignment

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By student name
Professor
University
Date: 7th Sep 2018.
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Contents
Question 1...................................................................................................................................................3
Question 2...................................................................................................................................................5
References.................................................................................................................................................10
Question 1
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The APES110 states the ethical principles that the auditor should follow while discharging
his duties for his clients. The ethical principles include integrity, congeniality, professional
conduct and maintaining the highest level of professional judgement while conducting their
duties (Sithole, et al., 2017). In the given assignment few cases have been discussed that
highlights the ethical issues that the auditor might have gone through and same has been
highlighted below.
a) In the given case it be Peter has been offered tickets at 25 percent discount due to his long
association with the company, in this case Peter should not accept the tickets due to the
competency of him being the auditor of the company from past 6 six years. This is
against his professional conduct and is an ethical miss compliance of the principal of
Professional behaviour that states that the auditor should not do any such thing that might
bring disgrace to the profession. And thus, he should not accept the tickets at discounted
price because he is the auditor of the company.
b) Jana has been hired as an auditor for the audit of Gerona Company and he has been
working as the auditor for the past three years in the same industry. This is not a violation
of the ethical principles as an auditor can work for the audit of the company who is in the
same industry even if he has been working in the same industry for many years (Choy,
2018). The auditor just needs to maintain the confidentiality and integrity that should not
hamper the position of the companies that he has audited before (Jefferson, 2017).
c) In the given case Jack Deck has no prior experience in installation of computerised
machinery and he has taken help from an outside computer inventory consultant to do
the work of the client and has also not checked his work due to tight deadlines and
gives the cue for the installation of the machinery (Erik & Jan, 2017). In this case it
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