Auditing and Professional Practice

Running head: AUDITING AND PROFESSIONAL PRACTICE
Auditing and Professional Practice
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1AUDITING AND PROFESSIONAL PRACTICE
Table of Contents
Question 1:.................................................................................................................................2
Question 2:.................................................................................................................................3
Question 3:.................................................................................................................................4
Requirement (a):.....................................................................................................................4
Requirement (b):....................................................................................................................4
Requirement (c):.....................................................................................................................4
Requirement (d):....................................................................................................................5
Requirement (e):.....................................................................................................................5
Requirement (f):.....................................................................................................................5
Requirement (g):....................................................................................................................6
Requirement (h):....................................................................................................................6
References:.................................................................................................................................7

2AUDITING AND PROFESSIONAL PRACTICE
Question 1:
Scenario Threat Explanation
1 Intimidation According to “Paragraph 100.12(e) of APES 110”, if any
client pressurises an auditor for providing favourable results,
it leads to intimidation threat. In this case, the CEO has
threatened the auditors to issue unqualified opinion.
2 Familiarity “Paragraph 100.12(d) of APES 110” states that if audit team
members have close relationship with the audit client, they
would act to meet the interest of the latter party. In this case,
the audit team members receive holiday cruise as gift from
the client, which would affect audit opinion (Apesb.org.au,
2019).
3 Self-Interest In accordance with “Paragraph 100.12(a) of APES 110”, if
an auditor has financial or other interest with the audit client,
there would be probable effect on behaviour and judgement
like holding shares of a client organisations in this case.
4 Familiarity Due to the blood relationship between the audit partner and
director of the client organisation, familiarity threat is
inherent.
5 Advocacy “Paragraph 100.12(c) of APES 110” mentions that when an
audit member promotes the position of a client, there would
be advocacy threat, as the audit firm is promoting new share
issuance for the client.
6 Advocacy Since the auditor is acting as the mediator of the client for