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ACC300 Auditing and Assurance Assignment - Question Answers

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Auditing and Assurance (ACC300)

   

Added on  2020-05-28

ACC300 Auditing and Assurance Assignment - Question Answers

   

Auditing and Assurance (ACC300)

   Added on 2020-05-28

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Running head: AUDITING AND ASSURANCEAuditing and AssuranceName of the StudentName of the UniversityAuthor’s Note
ACC300 Auditing and Assurance Assignment - Question Answers_1
1AUDITING AND ASSURANCETable of ContentsAnswer to Question 1......................................................................................................................1Requirement [a]...........................................................................................................................1Requirement [b]...........................................................................................................................1Requirement [c]...........................................................................................................................2Requirement [d]...........................................................................................................................2Answer to Question 2......................................................................................................................3Requirement [a]...........................................................................................................................3Requirement [b]...........................................................................................................................4Requirement [c]...........................................................................................................................4Answer to Question 3......................................................................................................................5Requirement [a]...........................................................................................................................5Requirement [b]...........................................................................................................................5Requirement [c]...........................................................................................................................6References........................................................................................................................................7
ACC300 Auditing and Assurance Assignment - Question Answers_2
2AUDITING AND ASSURANCEAnswer to Question 1Requirement [a]From the provided situation, it can be seen that Berowra Accountants are providing theguarantee of tax refund to their client thorough special advertisement. In this case, it is requiredto know the concept of tax refund. Tax return refers to the difference between tax paid and taxowed. More specifically, companies can get tax refund when the amount of tax liability of thecompanies is less than tax paid. Whether a company will get tax refund or not totally depends onthe income, profit and tax expenses of the companies (Galit and Metaban 2012). It is not possiblefor the auditors to make the guarantee of tax refund. On the other hand, the main responsibilityof the auditors is to examine the financial accounting of the companies in order to find materialmisstatement and to do compliance check. Thus, it would be non-audit service in case of taxrefund. For this reason, as per APES 110 Code of Ethics for Professional Accountants, Section130, this act of Berowra Accountants has breached the principle of Professional Competenceand Due Care (Han Fan, Woodbine and Cheng 2013). As per this act, an auditor can make clientby knowing the limitations of the professions and Berowra Accountants has failed to do so.Requirement [b]According to the provided case study, Jamie Harvey, an auditor of a charter accountingfirm has been asked to be the treasurer of the local club. In addition, Jamie Harvey only does theaudit of large public corporations. It needs to be mentioned that athletic clubs are considered asnot-for-profit societies. According to APES 110 Professional Appointment, Section 210, at thetime of accepting a new client appointment, the auditors are required to determine whether theacceptance of the appointment would affect the compliance of fundamental ethical principles ofaudit (Ottaway 2014). In this case, if the auditor accepts the proposal to be the treasurer, there
ACC300 Auditing and Assurance Assignment - Question Answers_3

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