Purchase Solution

Evaluate Breaches to the Code of Ethics

Not what you're looking for?

Ask Custom Question

DEF Inc. is the audit client of ABC Inc. ABC Inc is a firm engaged in audit assurance provision, taxation advisory and corporate finance advisory. Recently, ABC Inc conducted a recruitment exercise on behalf of DEF Inc for the position of Chief Financial Officer. The recruitment process was not supervised by DEF Inc. till the final selection of the candidate was announced by ABC Inc. ABC Inc. has been contracted to provide audit assurance services, of DEF Inc, for 2018 financial year.

Also ABC Inc. is currently engaged in a joint venture with DEF Inc. with regards to the provision of consultancy services to the Federal Government. The joint venture constitutes a material effect of the financial statements.
Under the scenario described, identify any ethical shortcomings that would hinder the provision of audit assurance, by ABC Inc., to DEF Inc.

Purchase this Solution
Solution Summary

The solution set helps the user determine threats to the code of ethics for audit practitioners.

Solution Preview

Audit practitioners are required to abide to prescribed ethics and compliance rules in the provision of any assurance services. Under ACCA ethics of conduct, any breach of the rules is bound to elicit the removal of the audit practitioner.
In the above scenario, two issues constitute threats to the code of ethics of any audit practitioner.

The first ...

Solution provided by:
Chidi Ngene, M. Sc.
Education
  • B. Sc., University of Nigeria
  • M. Sc., London South Bank University
Recent Feedback
  • "Thank you."
  • "thank you Chidi Ngene.. if you have any APA references would be great"
  • "Thank you so much for your help, your explanations were easy to understand and apply!"
  • "are you able to highlight the equations used either on the xlsx or a word doc as to how each graph was formed- overall looks fine i just need help understanding this myself"
  • "Chidi Ngene, M. Sc. Was extremely helpful as without the help and guidance I would have failed, but with the help I passed. I still have a lot to learn and in need of the guidance to understand and learn more on the subject. I would recommend Chidi Ngene and BrainMass to anyone that are in need of help. Thank you!!"
Purchase this Solution
Free BrainMass Quizzes
Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

View More Free Quizzes
Related BrainMass Solutions

  • Discussion on Ethics Committees

    In addition, these committees are responsible to determine whether or not there was one or more breaches of ethics, by who or whom these breaches were conducted by, and the extent of these breaches in ethics.

  • Are ethics important to the accounting profession? Explain.

    of interest in using the information, and other breaches of the trust relationship.

  • Business Ethics

    281377 Business Ethics: Does an agent's breaches of loyalty terminate the agent's authority? Ethical Issue: Does an agent's breaches of loyalty terminate the agent's authority? How does your employer handle breaches of loyalty and ethics?

  • Differences in Ethics Codes between Businesses and Non-profits

    Using the example of a current or recent employer, evaluate and critique their code of ethics. If none exists?

  • Ethical Considerations in Business Dissertations by Students

    - Documentation for students should include comment on ethics and indicate the procedures they will be expected to follow. - Students should be notified of an appropriate professional code which they should use.

  • Accounting Theory

    My part of the paper i need to talk about Ethics in Financial Reporting and I have to identify at least three ethical roles in financial reporting. Evaluate the limitations and ramifications on the present state of ethics in financial reporting.

  • Unethical and illegal behavior in corporations

    There also needs to be a code of ethics that people are required to follow and procedures to allow for the reporting of unethical behaviors or concerns about the direction a company is taking without fear of losing their position.

  • Company Code of Conduct and Employee Behavior

    Even Enron had somewhat of a code of ethics. The problem is that the SEC needs to ensure the code of ethics is enforced.

  • Ethical dilemma and regulatory compliance

    The code requires that if any employee gets information about a violation of any provision of the code of conduct, the employee is required to report it to the ethics committee.

View More Related Solutions