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Auditing and Assurance Services: Doc

   

Added on  2021-02-20

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Auditing and AssuranceServices
Auditing and Assurance Services: Doc_1
Table of ContentsMAIN BODY.......................................................................................................................................3Question 1.............................................................................................................................................3a. Identifying ethical issues being faced..........................................................................................3b. Safeguards procedures available to offset threat.........................................................................3Question 2.............................................................................................................................................4a. Threats and action affecting firms' independence........................................................................4b. Response to managing director of Rodney Ltd...........................................................................5REFERENCES.....................................................................................................................................6
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MAIN BODYQuestion 1.a. Identifying ethical issues being faced.Ethics is related with the moral values, beliefs and principles which has been made in thecontext of better performance of every professional engaged in the business of renderingprofessional services. Being an auditor, it is duty to perform audit function in the interest of thefirm. The ability and willingness of auditor in identifying fraud, mistakes and errors in the financialstatements is considered as one of the most important ethical as well as professional factor. It isrequired on the part of auditor to deliver reliable, proper and clear picture about the financialposition of the company related to a particular time period. As per the auditor's profession, it is essential to comply with all the professional code ofconduct as laid down by the authorities. Ethical issues can be related to number of factors whichincludes – professional judgement made in inappropriate manner with self interest motive, failure inmaintaining objectivity, materiality as well as independence aspect while preparing financialstatement of the company etc. For mitigating ethical issues being faced, auditors are required toadopt the following ethical principles:1.Imperative principles – As per this principle, it helps the auditor with the opportunity ofdirecting the process of decision making and should behave in the manner as prescribed andin accordance of ethical regulations (Ojasoo, 2016). With the help of this principle, theauditor of Airedale Ltd is having option to monitor all the business processes andtransactions as undertaken during an accounting period. It helps company in identifying itserrors and frauds committed while recording such procedures.2.Utilitarianism – In accordance with this principle, focus is made on determining theconsequences of applying such principle in-spite of following number of different ethicalrules and regulations. b. Safeguards procedures available to offset threat.It is the duty of every professional individual to assess every type of threat associated withthe business of which the auditor is having full information about it. The self – interest threatbasically arises from the act of auditor as undertaken by them in their own interest and benefit. Interms of self interest it mainly includes interest of auditor related to emotional, personal as well asfinancial nature. It is also related with the review provided by the auditors about its own as well as
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