AUDITING & ASSURANCE SERVICES

Auditing and Assurance Services

[Name of Companies]

Auditing and Assurance Services

Has Rodney breached any auditing standards/regulations and if so, what and why?

Rodney has breached the auditing standards and regulations. According to the Accounting Professional & Ethical Standards Board confidentiality should be maintained to make sure that the company information is not given to any unauthorized person. Rodney is working as an auditing assistant in the company and has to abide by the laws and regulations related to the company, as well as, the accounting code of ethics. Section 140 of the Accounting Professional & Ethical Standards Board states that, employees should refrain from disclosing any financial information of the company or its clients (www.icnl.org). There is only one condition where the disclosure of information is allowed. It is allowed in conditions and circumstances where the employee or the company is required by law to disclose their financial information. The employees are allowed to talk about the financial aspects of the company only in legal proceedings. Other than this, they have to maintain confidentiality and have to refrain from disclosing any type of financial information either of the company or of any of its clients.

According to the Corporations Act 2001, maintaining confidentiality is the major responsibility of the employees, as well as, the management. It is important for the employees to make sure that all financial information is kept confidential and are not disclosed to anyone. Rodney has breached the law and has used one of his company's client's financial information for completing his auditing assignment. According to Section 1317AE of the Corporations Act 2001 the employees are liable to maintain the confidentiality of the financial information of the company and that they have to make sure that the right ways are adopted to ensure that the information is not leaked out (www.austlii.edu.au). An employee is only allowed to disclose financial information during legal proceedings or if he/she is allowed by law to disclose financial information.

In addition to breaching the laws, Rodney has worked unethically and has not performed according to the standards of the company. He has acted in an immoral way and has used the information of the client because it was very relevant to his auditing assignment. Such actions should not be performed by any employee as they are not only illegal, but also immoral and unethical. Companies should take strict actions when employees perform this kind of immoral and illegal act. They should be punished for breaching the law, and also for breaching the contract. It should be made sure that the employees who are working for the company follow the law, as well as, the contract so that they perform their work with accuracy and do not indulge in such immoral activities.

There are certain conditions defined in the law and in the contract when the employee is allowed to disclose financial information. These conditions should be well known by the employees so that they can work accordingly and the result of acting immorally should also ...