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The Ethical Requirements of APES - Case Study - ACCT19061

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CQUniversity Australia

   

Advanced Financial Accounting (ACCT19061)

   

Added on  2020-03-02

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ACCT19061 - The paper analyses various situations provided as case study in relation to the ethical requirements of APES 110. The content identifies each situation as a breach of the codes of conduct set by APES 110 or determines the situation as a standard situation without a breach of the codes of conducts. The breach to be determined is also known as failure to meet the set principals as discussed below.

The Ethical Requirements of APES - Case Study - ACCT19061

   

CQUniversity Australia

   

Advanced Financial Accounting (ACCT19061)

   Added on 2020-03-02

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Management Accounting1MANAGEMENT ACCOUNTINGStudent by (Name)Professor’s (Name)CollegeCourseDate
The Ethical Requirements of APES - Case Study - ACCT19061_1
Management Accounting2MANAGEMENT ACCOUNTINGIntroduction There are various ethical requirements outlined within APES 110 which provides moralbase for auditing and accounting practices. Auditors and accountants therefore, have anobligation to adhere to the required standard by meeting the ethical requirements of APES 110.N some instances various accountants and auditors fail to meet the set standards leading to abreach of the APES 110 ethical requirements. The content of this paper analyses varioussituations provided as case study in relation to the ethical requirements of APES 110. Thecontent therefore identifies each situation as a breach of the codes of conduct set by APES 110 ordetermines the situation as a standard situation without a breach of the codes of conducts. Thebreach to be determined is also known as failure to meet the set principals as discussed below.Question 1 Ethical requirements of APES 110Auditors and accountants are required to observe professional ethics and uphold variousprinciples prescribed by APES 110. In this first situation, it is evident that the team of auditorsinvolved breached the professional ethical requirements of APES 110.The Mortdale Accountingfirm according to the prescribed ethics was supposed to provide information and audit serviceson various audit reviews (Martinov-Bennie and Mladenovic 2015). The Mortdale accountingfirm before handing over the documents to the firm performing reviews, was supposed to offeradvice to its clients of these reviews. The principle breached in this case is the principle ofprofessional behavior which demands that members should comply with the law and avoid any
The Ethical Requirements of APES - Case Study - ACCT19061_2
Management Accounting3omission which may bring discredit to the profession. The third party should be reasonablyinvolved and informed and in this case the firm should have informed both the client and thefirm conducting the reviews.The second situation as provided within the case study indicates a breach of the codes ofconduct. An accountant is required to be transparent in every action he or she takes, JanDungog,a CPA was therefore, required by section 110.1 to be transparent to both employees.The principle breached in this case is the principle of integrity, which according to section 110.1of APES 110 requirement is mandatory for every accountant (Han Fan, Woodbine and Cheng2013). Principle of integrity requires all members to be honest and truthful in every action theytake, and failure to adhere to this obligation results to a breach of ethics of conduct.In this situation Wendal Sailor is in breach of the APES 110 ethical requirements as theirinterest in offering other services may compromise their audit judgment since they have notissued their final opinion to the client firm. The principle breached in this situation is theprinciple of objectivity in section 120 (Han Fan, Woodbine and Cheng 2013). The principle ofobjectivity imposes a mandate on all members not to be involved in situations which may resultinto conflict of interest as witnessed in this situation.Since Judith Durham is the partner on a nonprofit making audit charitable organizationand She is also a member of the Board of Directors whose position is honorary and does notinvolve her performingany management function, there is no breach of APES 110 ethicalrequirement since there is lack of personal interest or gain by her while conducting the exercise.Ernie Dengate has in this case breached the professional requirements of APES 110 byselling his accounting practice which includes bookkeeping, tax as well as information obtained
The Ethical Requirements of APES - Case Study - ACCT19061_3

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