Auditing and Assurance Services Identification

The obligation of duty of care varies with the each case scenario as the severity of duty enhances the extent of responsibility. A greater duty of care will arise when it relates to the matters which are presumed to be in the knowledge of professional accountant or where fees are charged (Gay and Simnett, 2010).   A Professional accountant may accept a commission from the third party in connection with the sale of goods and services to a client. In the present case, Peter Harmon, professional accountant advises its clients to purchase computer services from Bunker L Ltd. In consideration Bunker, L Ltd has promised to pay 10% commission. Peter Harmon hasn’t violated Accounting code of ethics. According to Section 120 of APES Code of ethics for professional accountant’s states that a Member in practice may accept referral fees related to the client but only in certain situations (Mironiuc, Robu and Robu, 2012). This acceptance of commission or referral fee creates a self-interest threat objectivity, professional competence and due care but accountant has to disclose the clients about the arrangement in connection with the sale by the third party to its client. Here the accountant has to disclose about the arrangements in relation to the commission to the clients to safeguard the threat relating to self-interest. In this situation, there can be a breach of the principle of objectivity and Professional Competence and Due Care. According to Section 140 of APES Code of ethics for professional accountant’s imposes an obligation on all members to refrain from: In the above case, David Smith has referred it clients to insurance companies without letting them know. It is the obligation of the auditor to maintain confidentiality about the information acquired due to business and professional relationship. However, in the given case the auditor has disclosed confidential information (Glover, Taylor and Wu, 2015). Here David smith has to let know the clients about this fact that he has referred their names and about the arrangements in connection with the commission which the auditor will receive in consideration. In this situation, there is a breach of confidentiality. In accordance with the auditing ethics of Australia, it is important to accomplish audit work by considering professional approach and being committed to the work of client. As per the provided information in the scenario, it can be noticed that there is not a proper aspect for securing information provided by the client as information can be assessed by anyone and it can lead to clients (Glover, Taylor and Wu, 2015). By considering this factor, in this case, there is the possibility of violation of the ethical principle of the objectivity and Professional Competence and Due Care. Arens, A.A, 2007. Auditing and assurance services in Australia: an integrated approach. Pearson Education Australia. Collings, S., 2014. Frequently Asked Questions in International Standards on Auditing. John Wiley & Sons. Gay, G.E. and Simnett, R. 2010. Auditing and assurance services in Australia. Mcgraw-hill. Glover, S.M., Taylor, M.H. and Wu, Y.J. 2015. Mind the gap: Factors contributing to purported deficiencies in auditing complex estimates beyond auditor performance. Available at SSRN 2504521. Mironiuc, M., Robu, B. I. and Robu, A. M., 2012. The Fraud Auditing: Empirical Study Concerning the Identification of the Financial Dimensions of Fraud. Journal of Accounting and Auditing Research and Practice, 2. End your doubt 'should I pay someone to do my dissertation by availing dissertation writing services from