ACC300 Auditing and Assurance Services
This assignment is comprised of different questions so it is necessary to answer each question separately.Please complete your assignment ,ensuring you appropriately reference it.
NOTE: THIS IS A GROUP ASSIGNMENT .
QUESTION 1(12 marks)
The following situations involve potential violation of the general ethical principles as outlined in APES 110 .You are asked to advise whether they involve a violation or not of the ethical principles
and if there is a violation explain which ethical principle has been violated and the reason(s)why it is or isn’t a violation .
f)EdithBailey , a public accountant in a small country town,runs a small partnership accounting firm which provides tax services,management advisory services ,bookkeeping services and conducts audits for the same client .Since the firm has only two partners and there are only two accounting firms in this town frequently the same person carries out these services over the last ten years .
QUESTION 2 ( 8 marks)
The following situations refers to threats to the Auditor’s independence.You are asked to state what
the different threats to the Auditor’s independence are and explain how these threats impact on the Auditor’s independence and any other implications for yourself and your firm.
Keith Barnes has been working as an auditor for the AndrewCapizzi Chartered Accounting firm for the past five years and has just started an audit on the Maitland Coal company, a local listed public company .Thecompany has been producing coal for the past fifteen years and uses the cheapest legally permissible method to dispose of its waste and has not adopted the new anti pollution proposals by the government which must be adopted by the end of the year.You know that this company has previously had unfavourable articles about it in the local press.
Your Audit Manager ,David Mann , has stated that it is your responsibility just to provide an opinion
on the financial statements with the emphasis being on providing an opinion on whether the financial statements are true and fair and whether there are any material misstatements.The Andrew Capizzi firm has been the Auditor for the Maitland Coal company past eight years and the audit comprises 25% of its total fees revenue currently.