BFA713 Audit And Assurance Systematic Financial Evaluation Management

BFA713 Audit And Assurance Systematic Financial Evaluation Management

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BFA713 Audit And Assurance

Task:

One of the sub-topics covered in Week relates to APES Code of Ethics for Professional Accountants. The code sets out the main ethical pronouncement for members of professional accounting bodies in Australia, which are, CPA Australia, Chartered Accountants Australia and New Zealand (CAANZ) and Institute of Public Accountants (IPA).

APES sets out five fundamental principles of professional ethics that apply to all members, as well as providing guidance on independence requirements for audit and review engagement and other assurance engagements. In addition, auditors will also need to be aware of potential threats that could compromise their compliance with the fundamental principles.

Part A

Describe two (2) fundamental principles of professional ethics as stated in APES which were breached by Jennifer Stewart during the audit engagements in question1 Your reflection should be more than a simple restatement of the facts but also consider the broader implications of Stewart’s breach the ethical principles.

Part B

Describe one (1) potential threat2 to auditor’s compliance with the fundamental principles that might have contributed to Stewart’s failure to act in accordance with the ethical principles that you identified in part A.

Part C

Provide a brief discussion about how reading this case and completing this assessment task has helped you understand the importance of the ethical principles that guide the behaviour of the auditors and your understanding of the threats that auditors face that can impact on

their capacity to act ethically.

You are required to apply the APES Code of Ethics for Professional Accountants to the Stewart case, irrespective of the time and place the case took place. Our centre of interest is the gist of the case, and how it relates to the auditor’s non-compliance with the fundamental principles stated in APES 110, as well as the potential threats that may have contributed to their non-compliance.

BFA713 Audit And Assurance

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