In the provided situation, it can be seen that Mortdate Accounting firm has provided all the papers related to the audit of many public companies to Penshurts Accountants. APES 110, Confidentiality, 140 states that it is the obligation on the auditors that they cannot disclose the confidential information of the audit clients acquired at the time of providing professional services. For this reason, by providing the audit papers of their clients, Mortdate Accountants have violated the ethical principle of confidentiality (Houghton and Campbell 2013).
It is the responsibility of the auditors to determine that whether his/her new professional contract has negative effect on the fundamental principles of auditing. According to the provided situation, Jan Dungog applies to a local firm by not informing her current employer and the local firm appoints het by not informing her employees. This particular action of Jan Dungog has violated the fundamental principle of auditing and poses discredit to the same. Thus, as per APES 110, Professional Behavior, 150, this particular action of Jan Dungog has breached the professional behavior principle of auditing (William Jr, Glover and Prawitt 2016).
According to APES 110, Professional Behavior, Section 150, it is the responsibility of the auditors to comply with the required laws and regulations related to auditing. APES 110 states that the auditors are not allowed offer any kind of additional services to the audit client apart from the auditing services. Thus, as per APES 110, in this particular situation, Wendel Sailor have breached the ethical principle of professional behavior with his particular action (Houghton and Campbell 2013).
As per the principles of APES 110, auditors are required to determine whether their new contract has any negative effect on the audit principles or not. In the provided situation, it can be seen that Judith Durham is the member of Directors but does not involved in any kind of management function. Thus, as per APES 110, this action of Judith Durham has not violate any ethical principle of auditing (William Jr, Glover and Prawitt 2016).
According to APES 110, Confidentiality, Section 140, the obligation is one the auditor not to disclose the acquired information of the audit clients obtained while performing the audit operations. In the provided situation, it can be seen that Ernie Dengate sells all of this accounting papers containing information about the clients to Jago. Thus, this particular action of Ernie has violated the confidentiality principle of auditing as per APES 110 (Marchetti et al. 2013).
According to APES 110, the auditors are not entitled to provide any kind of additional services to the audit clients apart from pre-determined audit services. As per the provided situation, Fred Nerk is providing different types of services to his audit clients. Thus, this particular action of Fred Nerk has breached the integrity principle of auditing as per APES 110, Integrity, Section 110 (Everett and Tremblay 2014).
As per APES 110, Confidentiality, Section 140, the auditors are required to keep the audit information in such a manner that the confidentiality of the information can be maintained. In case of Allgood Chartered Accounting firm, it can be seen that they maintain the audit records in a haphazard manner and it can affect the confidentiality of the information. For this reason, the action of this company has breached the confidentiality principle of auditing as per APES 110 (Marchetti et al. 2013).
According to APES 110, Professional Behavior, Section 150, it is the responsibility of the auditors to maintain the professional behavior with the audit clients. In this case, it can be seen that James Jameson’s actions are against the audit professional behavior. In addition, due to this, his audit license had been suspended. Thus, this action has violated the professional behavior principle of auditing as per APES110 (Everett and Tremblay 2014).
At the time of auditing, it is required for the auditors to obtain sufficient information before issuing the appropriate audit opinion. In this situation, it can be seen that the auditors was not able to obtain confirmation about eight major clients that has created obstacle for the audit process. Thus, the auditor will issue Qualified Audit Opinion (Habib 2013).
It is the responsibility of the organizations to provide the auditors with all the required access necessary for audit operation. In this case, it can be seen that the auditors are not able to verify certain assets due to the client’s restriction. Thus, the auditor will issue Disclaimer of Audit Opinion (Foroghi and Shahshahani 2012).
In this case, it can be seen that the management of the company has not done necessary disclosure about a contingent liability that can have material effect on the financial statements. Due to this action, the auditor will issue Disclaimer of Audit Opinion due to lack of evidence (Habib 2013).
In this case, it can be seen that the auditors cannot do anything verify the basis of sales due to the fault in internal control. Thus, in the lack of evidence, the auditor will issue Disclaimer of Audit Opinion (Foroghi and Shahshahani 2012).
In this particular case, it can be seen that the audit client has bared the auditor from obtaining the opening balance of the accounts that can have material effect on the financial statements. Thu, the auditor will issue Disclaimer of Audit Opinion in this case (Blankley, Hurtt and MacGregor 2012).
Companies are required to follow the required accounting standards for developing and presenting the financial statements. In this case, it can be seen that the company has not followed the Australian Accounting Standards and thus, the auditor will issue Adverse Audit Opinion (Carson et al. 2012).
In this case, it can be seen that the effects of following the disallowed LIFO method can only be seen on the inventory and it has no effect on other accounts. Thus, the auditor will issue Qualified Audit Opinion by adding the reason of not being unqualified (Blankley, Hurtt and MacGregor 2012).
Auditors are only required to find out the material misstatements in the financial statements and they do not have any responsibility on commenting on the going concern status. Thus, the auditor will issue Unqualified Audit Opinion due to have no material misstatements (Carson et al. 2012).
References
Blankley, A.I., Hurtt, D.N. and MacGregor, J.E., 2012. Abnormal audit fees and restatements. Auditing: A Journal of Practice & Theory, 31(1), pp.79-96.
Carson, E., Fargher, N.L., Geiger, M.A., Lennox, C.S., Raghunandan, K. and Willekens, M., 2012. Audit reporting for going-concern uncertainty: A research synthesis. Auditing: A Journal of Practice & Theory, 32(sp1), pp.353-384.
Everett, J. and Tremblay, M.S., 2014. Ethics and internal audit: Moral will and moral skill in a heteronomous field. Critical Perspectives on Accounting, 25(3), pp.181-196.
Foroghi, D. and Shahshahani, A.M., 2012. Audit firm size and going-concern reporting accuracy. Interdisciplinary Journal of Contemporary Research in Business, 3(9), pp.1093-1098.
Habib, A., 2013. A meta-analysis of the determinants of modified audit opinion decisions. Managerial Auditing Journal, 28(3), pp.184-216.
Houghton, K. and Campbell, T., 2013. Ethics and auditing (p. 354). ANU Press.
Marchetti, D., Spagnolo, A., Cicerone, M., Cascini, F., La Monaca, G. and Spagnolo, A.G., 2013, September. Research ethics committee auditing: The experience of a university hospital. In HEC forum (Vol. 25, No. 3, pp. 257-268). Springer Netherlands.
William Jr, M., Glover, S. and Prawitt, D., 2016. Auditing and assurance services: A systematic approach. McGraw-Hill Education.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download