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APES 110 Code Of Ethics For Professional Accountants

1355 Words6 Pages

[Year]

[Type the author name]

[AUDITING AND ASSURANCE STANDARDS]

Answer to Question no 1 (1)
The audit threat identified in the said situation is the threat to compliance with the essential principles of auditing. As per this there is an obligation on the auditor to perform only those activities which he is competent to perform being a Member in Public Practice. Thus in this case the fact that Geoff is required to give a speech in the seminar held by LTH so as to secure more investors is acceptable but the fact that it will help Geoff to secure the audit of LTH would create the above mentioned threat. However the best possible way to overcome the said which may create a conflict of interest thus threatening the very independence of the auditor is by making it very clear to the client that he would not speak up anything that is not true and fair. This would help to reduce the risk to an acceptable level yet ensure that the work is secured as well from LTH (Apesb.org.au., 2010). But if the same is not acceptable by the client and he demands to give a …show more content…

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