APES 110 Accounting Assignment Sample
Here’s the best sample of APES 110 Accounting Assignment, written by the expert.
Question 1
- In the scenario, the ethical requirements of APES 110 have been breached where the practicing firm cannot disclose the collected information regarding the clients during the assurance process and audit with their permission (Martinov-Bennie and Mladenovic, 2015). According to this scenario, Mortdale accounting firm has collected working papers of clients during conducting the audit of different public companies. In addition, the collected information was also shared by the company during the assurance process to Penshurst accountants to carry out the assurance activities. In this, the fundamental principle of confidentiality is breached by the firm.
- In the scenario of Jan Dungog, the ethical requirements of APES 110 has breached both by CPA and by the accounting firm. The accounting firm should contact her current employer because the current employer has right to know about new employee who will be work under him (Han Fan et al., 2013). As well as, Jan Dungog should also contact with the current employer to tell about the other referees to know about the new hired employee is good or not. In this, the principle of professional behaviour has breached.
- As a chartered accountant, Wendal Sailor provides advises about the other services of the firm. In this scenario, the ethical requirements of APES 110 has not been breached by Wendal Sailor because it is essential for the company to provide their service details prior to provide the final audit opinion (Dal Pont, 2014). So, it can be said that the CA has not breached any ethical principle in this scenario. Although it is identified that all the information given by company do not fulfills the ethical requirements of APES 110. During audits, Wendal Sailor contacts the firms to provide advice of the company’s services to provide the final Audit opinion.
- The ethical requirement of AEPS 110 has been breached in this scenario. It is because Judith Durham is an honorary position in a charitable organisation but she is not performing in any management function. She should perform in the management functions because she is board of director. In this scenario, the principle of professional competence and due care has been breached by Judith Durham.
- In this scenario, the ethical requirements of APES 110 have been breached by Erine Dengate because the professional ethics does not allow a person to sell his accounting practices like bookkeeping, tax and auditing (George et al., 2014). If he want to sale these papers then it is essential to take permissions to the accountant. In this scenario, Erine Dengate has breached the fundamental principle of Integrity in ethical principle. As per the accounting ethics, the accounting practices of the company should not sell or buy because the accounting books may misuse by the people.
- In the scenario of Fred Nerk, all the ethical requirements of APES 110 has not been breached because according to ethical principle the same person can provide different kind of services to the clients such as providing tax services management advisory services as well as audit. According to the section 28 of APES 110, a member in public practice is independent to provide different services at a time. So, the ethical principle of the APES 110 has not been breached in this scenario.
- The Allgood Chartered Accounting maintains the accounting records on the several computers but these computers are not appropriate for effectively manage the accounting terms. So, in this scenario, Allgood Chartered Accounting has been breached ethical requirements of APES 110. It is because the company should provide adequate computer facility to the Branch Company.
- On the basis of the scenario of James Jameson, it is identified that James Jameson has broken many laws and regulations as general citizen not as public accountant. So in this case, the James Jameson has not broken any law of APES 110code of ethics for professional accountant but also it has been broken the ethics of the misbehaviour in the public place as well as disorderly behaviour after the drunk.
Question 2
- In this scenario, the type of the opinion is unqualified opinion. It is because the auditor was able to satisfy the customers himself by the use of other audit procedure like no material misstatements. In this audit procedure, the auditor can satisfy each of eight clients by providing no misstatement in the material.
- In this situation, the unqualified opinion will be provided by the auditor. It is because the auditor knows that the report is not clean due to not providing the information about the property, plant and equipment (Chen et al., 2016). In addition to this, the financial statement of the company does not consider the property, plant and equipment which are 35% of total assets.
- In this situation, the qualified opinion has been adopted by the auditor because the management has excluded the contingent liabilities from the financial report to provide necessary disclosures. The auditor’s report can be modified in this situation because the management have excluded the contingent liability that may become actual liability.
- The qualified opinion would be expressed by the auditor in this situation because auditor takes exception to a fix accounting application. In this situation, the internal controls are inadequate and the value cannot be verified.
- The disclaimer opinion can express by the auditor in this situation due to not providing information about the opening balance of the client (Tsipouridou and Spathis, 2014). In this, it is identified that the company have no material misstatement for the provided information of the current financial information. Moreover, it can be said that the auditor can express disclaimer opinion when books of accounting are not exactly maintained.
- In this situation, the auditor expresses the qualified opinion about the financial statement because the client is not following Australian Accounting Standards from last for years. It identifies that the auditor is not confirm about the client’s financial statement that it is fair or not.
- The qualified opinion would be expressed by the auditor in the current situation. It is because the client is using LIFO method for the inventory accounting that is disallowed to the Australian Accounting Standards. In this, it is assumed that the LIFO method creates false results for the financial statements (Chan et al., 2012). It is because the material effects on the financial statements of the company where the inventory value of the company provides false results.
- In this case, the auditor would express the adverse opinion because there is no material misstatement. The auditor has confirmation that financial statement of the client is fair as per the inventory (Chen et al., 2016). But, on the basis of this scenario, the continuation of the client is not much good that can affect the business of the auditor. There is a conflict between client and auditor which shows that the opinion would impact on the financial statement related decisions.
References
Chan, K.H., Lin, K.Z. and Wang, R.R., 2012. Government ownership, accounting-based regulations, and the pursuit of favorable audit opinions: Evidence from China. Auditing: A Journal of Practice & Theory, 31(4), pp.47-64.
Dal Pont, G., 2014. Ethical conflicts and the tax practitioner. Revenue Law Journal, 24(1), p.24.
George, G., Jones, A. and Harvey, J., 2014. Analysis of the language used within codes of ethical conduct. Journal of Academic and Business Ethics, 8, p.1.
Han Fan, Y., Woodbine, G. and Cheng, W., 2013. A study of Australian and Chinese accountants’ attitudes towards independence issues and the impact on ethical judgements. Asian Review of Accounting, 21(3), pp.205-222.
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.
Tsipouridou, M. and Spathis, C., 2014, March. Audit opinion and earnings management: Evidence from Greece. In Accounting Forum (Vol. 38, No. 1, pp. 38-54). Elsevier.
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