Auditing Theory and Practice

Running head: Auditing Theory and Practice

Auditing Theory and Practice 1
Contents
Answer to Q1.(a).........................................................................................................................................2
Answer to Q1.(b).........................................................................................................................................2
Answer to Q1.(c).........................................................................................................................................2
Answer to Q1.(d).........................................................................................................................................2
Answer to Q1.(e).........................................................................................................................................3
Answer to Q1.(f)..........................................................................................................................................3
Answer to Q1.(g).........................................................................................................................................3
Answer to Q1.(h).........................................................................................................................................3
Answer to Q2.(a).........................................................................................................................................4
Answer to Q2.(b).........................................................................................................................................4
Answer to Q2.(c).........................................................................................................................................4
Answer to Q2.(d).........................................................................................................................................4
Answer to Q2.(e).........................................................................................................................................4
Answer to Q2.(f)..........................................................................................................................................5
Answer to Q2.(g).........................................................................................................................................5
Answer to Q2.(h).........................................................................................................................................5
References...................................................................................................................................................6

Auditing Theory and Practice 2
Answer to Q1.(a)
Mordale Accounting firm has clearly violated the ‘Principle of Confidentiality’ as per Section
140 of APES 110 Code of Ethics for Professional Accountants. This principle states that the
members should restrict themselves from disclosing the professional information outside the firm
or to the third parties without a specific or proper approval from their clients (Martinov-Bennie
and Mladenovic, 2015).
Answer to Q1.(b)
As per the given situation, Jan Dungog a CPA has been appointed by a local accounting firm
without informing her previous employer. As per section 120 ‘Objectivity ‘ of APES 110 Code,
the members should not compromise their business or professional judgment due to bias, undue
influence of others or conflict of interest.
Answer to Q1.(c)
As per the given situation, Wendell Sailor has violated section 110 ‘Integrity’ of APES 110 Code
which imposes the obligations on the members that they should be honest and straightforward in
all their professional and business relationships.
Answer to Q1.(d)
As per the given case, Judith Durham has violated the principles of Section 220 ‘Conflict of
Interest ‘ of Part B of APES 110 Code. It states that the members in public practice should take