A Report on Ethical Standards: University Accounting Module

This report examines ethical standards in accounting, specifically focusing on adherence to APES 110. It analyzes five scenarios, each representing a potential breach of ethical principles. The report identifies violations related to confidentiality, professional behavior, integrity, and objectivity, providing detailed explanations for each case. The analysis includes discussions on the unauthorized sharing of audit documents, hiring practices, auditor influence, potential conflicts of interest within audit teams, and data security. The report references relevant literature to support its findings and provide context for the ethical considerations within the accounting profession, highlighting the importance of ethical conduct in maintaining trust and integrity.

Running head: A REPORT ON ETHICAL STANDARDS
A Report on Ethical Standards
Student’s Name:
University Name:
Author Note

1A REPORT ON ETHICAL STANDARDS
Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................2
Question 3........................................................................................................................................2
Question 4........................................................................................................................................3
Question 5........................................................................................................................................3
References........................................................................................................................................4

2A REPORT ON ETHICAL STANDARDS
Question 1
The situation presented in the question is that the concerned firm named Mortdale
Accounting firm did execute many auditing procedures of the companies that are public in nature
in the last accounting year. The issue lies in the fact that the firm now provided these documents
of audit to Penhurst Accountants because they were performing a task of conducting a quality
review of the auditing procedures executed by Mortdale Accounting, but the firm did not
previously inform the clients of this happening. This definitely does not meet with the ethical
requirements of APES 110. The ethical principle of Confidentiality has been breached. This is
because Mortdale Accounting should have never provided the document of audit without taking
prior permission from its clients (Townsend 2014).
Question 2
The situation presented in the question is that Jan Dungog does apply to a local public
accounting firm of Chartered Accountants in the want of a position but the issue lies in the fact
that it requests the accounting firm in which she applies to refrain from contacting her current
employer and then the situation becomes such that she is hired by the accounting firm without
contacting her current employer. This definitely does not meet with the ethical requirements of
APES 110. The ethical principle of Professional Behavior has been breached. This is because Jan
should have been hired after providing relevant information to her employer (Townsend 2014).
Question 3
The situation presented in the question is that Wendal Sailor conducts audits of firms and
in the due process often connects with the firms whose audit is being executed suggesting of the

3A REPORT ON ETHICAL STANDARDS
other required services before establishing the audit opinion finally. This definitely does not meet
with the ethical requirements of APES 110. The principle of Integrity has been breached. This is
because the firm does not follow a true and fair method for auditing the firms, instead it
influences the client firms to commit fraud (Townsend 2014).
Question 4
The issue presented in the situation is that Judith Durham is a part of the audit team of a
non-profitable charitable organization and is also associated with the Board of Directors of the
same organization but it’s a honorary position and she is not consulted in any kind of functions
related to management. This is not a breach of the ethical requirements of APES 110 until and
unless Judith provides certain crucial information or influences the result of audit. If she does
that then surely it would be a breach of the principle of Objectivity. This is because the audit
results would not reflect a fair view of the financial condition of the organization (Martinov-
Bennie, and Mladenovic, 2015).
Question 5
The situation presented in the question is that a certain firm of chartered accountants
keeps its records stored in various computers of its office. In order to accommodate the obtained
records of the Branch company it uses the computers in its office that is a certain portion of the
accounting records of the Branch company are maintained in the computers of All good
Chartered Accounting firm. This definitely does not meet with the ethical requirements of APES
110. The principle of Confidentiality has been breached as the crucial information of the client is
not safeguarded and maintained without proper security (Martinov-Bennie, and Mladenovic,
2015).

4A REPORT ON ETHICAL STANDARDS
References
Townsend, S.R., 2014. The regulation of auditor ethical behaviour in Australia: the problem of
conflicts of interest and proposal for structural reform.
Martinov-Bennie, N. and Mladenovic, R., 2015. Investigation of the impact of an ethical
framework and an integrated ethics education on accounting students’ ethical sensitivity and
judgment. Journal of Business Ethics, 127(1), pp.189-203.