Auditing and Assurance Services: Compliance with APES Standards

Running head: AUDITING AND ASSURANCE SERVICES
Auditing and Assurance Services
Name of the Student
Name of the University
Author’s Note

1AUDITING AND ASSURANCE SERVICES
Table of Contents
Introduction......................................................................................................................................2
Question 1........................................................................................................................................2
Requirement A.............................................................................................................................2
Requirement B.............................................................................................................................2
Requirement C.............................................................................................................................3
Requirement D.............................................................................................................................3
Requirement E.............................................................................................................................3
Requirement F.............................................................................................................................4
Question 2........................................................................................................................................4
Situation 1....................................................................................................................................4
Situation 2....................................................................................................................................5
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

2AUDITING AND ASSURANCE SERVICES
Introduction
Auditing refers to the process to examine and inspect the financial statements of the
business entities in order to make sure that they are free from material misstatements. At the time
of conducting the audit operations, it is the obligation on the auditors to comply with the ethical
principles of auditing in order to avoid the violation of audit ethics and audit independence.
Question 1
Requirement A
The auditing principle APES 110, Section 260, Gifts and Hospitality states there can be
the potential violation of the fundamental principles of auditing ethics in case the audit clients
offer the auditors with any gift, monetary offers or hospitality (apesb.org.au 2018). More
specifically, threat to audit objectivity will be created in case the auditors accept the offers or
gifts or hospitality from the clients. Thus, as per this principle of APES, it is the obligation on
Jenny Wang of not accepting the specific offers from Panania Cars Pty Ltd as there will be the
creation of the audit Objectivity threat in case she accepts the offer (William Jr, Glover and
Prawitt 2016).
Requirement B
According to APES 110, Section 260, Gifts and Hospitality, there will be the treat to
non-compliance with the ethical principles of auditing if the auditors accept any financial or non-
financial gift from the clients as this situation can end up in the creation of self-interest threat to
audit objectivity (apesb.org.au 2018). Thus, the auditors are required to analyze the level of this
threat. In light of the above-discussed principle of APES, Katrina Wearne has the obligation of