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Audit And Assurance

Discuss about the Audit services of Simtec Ltd.

Sample Answer


The principle of objectivity needs the professional to be unbiased in the opinion or a conflict of interest should not arise or the opinion should not be influenced by any situation. It implies that the decision should be independent without falling under any undue influence (Church et. al, 2008).

The Audit services of Simtec Ltd was managed by the Gordan Accountants from July 7th to 2nd September 2016 and it was stated by Simtec that the final payment will be based upon the receipt of the final report. If the terms and condition of the client are agreed upon by the Gordan Accountant then it would have been a violation of the principle of objectivity because then it would have been an undue influence from the client.

Non Violation

As per the ethical principle of the professional behavior, it must be ensured by the professional that the necessary regulations must comply any activity that tarnishes the image of the profession must be avoided.

In this scenario, David Dale is a local accountant and is asked by the Insurance Company to share the details of the client and even offered a 5% commission for every new client.  In this case, if David accepts the condition laid down by the Insurance Company then it will be a huge disrespect to the Insurance Company as a professional is not expected to accept any commission from an outside body.  Therefore, if David accepts the terms and conditions then it will breach the professional conduct and bring disrespect (Elder et.al, 2010).

Self-Review Threat

It is a threat that happens when a work or a judgment is required to be ascertained by the person who did that work.  In this case, Ellen Davis is appointed as a Senior Account Manager for a span of 4 years in Jenkins Ltd, the firm Thornleigh

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