AUDITING

HI5026 Auditing And Assurance Services

HI5026 Auditing and Assurance Services

Introduction to Assignment

This assignment deals with the issues regarding the breach of Professional Code of Ethics and Regulatory Framework that is necessary to be complied for professional accountants and auditors in order to provide a comprehensive framework for the application of those principles. The concept of auditing standards in a market economy defines the basics of building a system, and methodology for developing standards in the new economic environment prevailing in the country. It is based on the latest achievements of science and practice, focuses on the social market economy model, uses the experience of countries with developed market economies, in line with international rules and norms. The Code of professional ethics is segregated into three parts, so as to provide the auditors clear guidance of adopting specific performance standards::

Part A is dedicated to the entire community of professional accountants.

Part B applies to accountants that are professionally associated with special public practices.

Part C s for professional accountants in the arena of business practices only (Panel on the Nonprofit Sector, 2007, pp. 50-76).

The Code of Ethics for Professional Accountants was prepared by the International Ethics Standards Board for Accountants (IESBA), an independent standard-setting body within the International Federation of Accountants (IFAC). The concept of a set of key ideas and statements give a holistic view of future directions for the development of auditing standards, contributes to our understanding of them, and defines the methodology and the organization of practical activities. The concept of auditing standards aimed at improving the quality of audit services and risk reduction information to interested users of accounting information (Baker, Dahl, 2009, pp. 109-119).

This assignment will also address the alternative courses of action the auditors should have taken in order to properly discharge their professional responsibilities for each of the given independent situations. The following principles of the Code are a mandatory requisite for compliance by all professional accountants and auditors:

Integrity of the Company

Objectivity of the Situation

Professional Competence and Due Care

Confidentiality

Professional Behavior (Verschoor, 2005, pp. 203-217)

The concept of auditing standards is designed to:

Ensure the development of new and revision of existing standards;

Is the basis for making decisions on matters not covered by regulations;

The methodological principles and approaches to auditing standards;

Determine the model of regulation of audit activities;

Be the basis for the development of internal standards and management quality system for auditors (Verschoor, 2005, pp. 203-217).

Professional Standards and Regulatory Requirements Breached In Situation 1

This case relates to Brown's mistake for having Jeff work without any definite position or specific role in place of his own secretary. Hence, this can be a situation where the auditor was unable or unauthorized to practice due care in the projects. The obligation to perform the work with due professional care can be described in the terms of a person who offers his services to another and is hired, assumes the obligation to apply their skills with reasonable diligence and care (Fandray, 2000, ...