Auditing Theory and Practice Assignment Sample
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Added on 2021-04-17
Auditing Theory and Practice Assignment Sample
Added on 2021-04-17
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Running head: AUDITING THEORY AND PRACTICEAuditing theory and practiceName of the studentName of the universityStudent IDAuthor note
1AUDITING THEORY AND PRACTICEQuestion 2Table of ContentsQuestion 1..................................................................................................................................2Question 2..................................................................................................................................6Reference....................................................................................................................................9
2AUDITING THEORY AND PRACTICEQuestion 2Question 1APES 110 on code of ethics for the professional accountants had been released byAPESB (Accounting Professional & Ethical Standard Board and the code is effective from 1stJuly 2011. As per the code, the fundamental principles under professional ethics for themembers and it offers conceptual framework for the members that is applied to –Identifying the threats for complying with the fundamental principlesEstimating consequences of the threats identifiedApplying the safeguards for eliminating threats or reducing tem to the level that isacceptable. However, the members shall apply the professional judgement while applying theabove mentioned conceptual framework (Accounting Professional & Ethical Standards Board2018).Answer aAudit working papers that is the documents that records all the audit evidencesobtained while auditing the financial statements, auditing of information systems, auditing ofinternal management and investigation (Accounting Professional and Ethical StandardsBoard (APESB) 2013). However, the auditing papers solely belong to the auditors and withhis own discretion he can make available part of the working papers to the outsiders. Further,for disclosing the working papers to any third party prior permission of the client must beobtained. Moreover, the auditor must comply with general law duty with regard to theconfidentiality of the client. As per the given circumstance, Penshurst Accountants was notadvised to carry out the peer review by Mortdale Accounting and the peer review is carried
3AUDITING THEORY AND PRACTICEQuestion 2on its own discretion. Further, the prior permission from the client has not been taken beforeproviding the working papers to third party. Therefore it violated the ethics as per APES 110.Answer bIf the employer considers a person to engage into his firm or organization beforeengaging he must made some routine enquiry regarding the potential candidate. The inquirymay include the matters like his behaviour, work experience, integrity, objectivity andprofessional approach. Further, ha may contact the previous employer of the applicant toenquire as to whether any professional or any other reasons are there that the appointmentshall not be made (Krupenye et al. 2018). Therefore, if the employer employs the personwithout contacting the current employer or any other person on request of the applicant it willviolate the professional approach and breach the ethics of APES 110. Answer cThe member from the public practices are not allowed to advertise their work throughany means like personal call, online marketing as it violate the ethical principle of APES 110.Under given circumstances, Wendal Sailor, the chartered accountant, during audit used to callfrequently in the client office to take up services for his superannuation and insurancebusiness (Accounting Professional & Ethical Standards Board 2018). Further, they did sobefore delivering the final opinion regarding audit. Under such circumstances, the selfinterest threat is created as the auditor suggested availing their services through inconsistentway. Therefore, it is the violation of ethics under APES 110.Answer dA member under public practice must determine while offering professional servicewhether any threats are there with regard to the compliance of fundamental principle
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