Auditing Standards and Ethical Behaviour in Firms
Added on 2020-02-24
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Running head: AUDITING THEORY AND PRACTICEAUDITING THEORY AND PRACTICE Name of the StudentName of the UniversityAuthor’s Note
1AUDITING THEORY AND PRACTICE Executive SummaryThe main evaluations of the study have been able to address the legal and the ethical issuesassociated to the audit division at Miller Yates Howarth (MYH). The main considerations of thestudy will consider the application of AAA decision model which explains the ethical issuesconsidered in the study. It various types of the important considerations made in the study hasbeen taken into account by the use of this model. The latter part of the study has been seen toapply the appropriate case law with the recommendations of the managing partners of MYH. Thevarious types of the findings are seen to be based on the “APES 110 Code of Ethics forProfessional Accountants”. The value comparison is considered as per “APES 110 Code ofEthics for Professional Accountants”, this consideration has been further based on “Section 310conflicts of interest” vs. “AASB 102 on valuation of inventories”. The application of the casestudy has been considered with Esanda Finance Corporation Ltd v Peat Marwick Hungerfords(1997). The main legal issue has been seen with overvaluation of the inventory as per the incomeneeds and the gross profit. The overvaluation of the retained earnings has been furtherconsidered as per the statements needed to be valued appropriately.
2AUDITING THEORY AND PRACTICE Table of ContentsIntroduction......................................................................................................................................3Answer to Question1.......................................................................................................................3Answer to Question 2......................................................................................................................6Conclusion.......................................................................................................................................8References......................................................................................................................................10
3AUDITING THEORY AND PRACTICE Introduction“American Accounting Association (AAA)” has been founded in 1916 and is seen to behaving a rich and reputable history for holding premier community of academicians in Australia.The diversity among the membership has been further able to create environment withappropriate collaboration and innovation.The report has intended to address the legal and the ethical issues associated to the auditdivision at Miller Yates Howarth (MYH). The main considerations of the study will consider theapplication of AAA decision model which explains the ethical issues considered in the study. Itvarious types of the important considerations made in the study has been taken into account bythe use of this model. The latter part of the study has been seen to apply the appropriate case lawwith the recommendations of the managing partners of MYH. Answer to Question1AAA ModelDetermination of FactsAs per the given study it has been discerned that MYH accounting firm, mainly operatesin NSW and Queensland. Morgan Fertilisers Pty is recognized as a long standing client with theoperations in Tamworth and Toowoomba. Morgan Fertilizers has been seen to recently changethe contractor for waste management for Dumparound Ltd. Jacqui who is one of the seniorauditors is aware of the community activities and local council information for the investigationsmade in terms of the Dumparound Ltd. toxic level in one of the sites (Baikovs & Zariņš, 2013).
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