12 Dec QUESTION 1 (16 MARKS)The following situations may
QUESTION 1 (16 MARKS)The following situations may or may not breach the ethical requirements of APES 110.You need to state whether they are or are not a breach of the ethical requirements of APES110and if they are a breach of the ethical requirements state which ethical principle has been breached :(a) Ernie Dengate sells his accounting practice which includes bookkeeping, tax and auditing.He obtains permission for the release of tax working papers but does not request permission for the others.He releases all the working papers from these functions to the new accountant,Jago ,who has bought the practice .(b) Fred Nerk ,a public accountant in a small country town,provides tax services,management advisory services and does audits for the same clients.Sometimes the same person provides all these services.(c)The Allgood Chartered Accounting firm maintains its records on various computers in its office.It does audits on the Branch company and the Branch company has found its computer facilities are inadequate for its needs and so the Allgood Chartered Accounting firm has maintained certain of the accounting records of Branch company on its computers.(d)James Jameson ,a public accountant,stays too long at the annual Christmas party of his firm,the Balgowlah Accountants and consumes too much alcohol and drugs. He subsequently goes into town and is involved in a fight and is charged with assault on a person at a hotel as well as drunken and disorderly behaviour when he attempts to drive off.He is subsequently convicted and sentenced to 3 month in gaol as well as having his license suspended for 1 year.
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