Auditing and Ethics Independent Operation

The major responsibility of the auditors is to find out that if there is any materials misstatement in the accounting operations of the audited organization. There are some responsibilities of the auditors. They need to be ethical and honest at the time of audit operation (Louwers et al., 2013). In this regard, Accounting Professional & Ethical Standards Board Limited (APESB) has issued the APES 110 article that states the responsibility of the auditors. On the other hand, this article also includes the details of threats that an auditor can face and its safeguards (apesb.org.au 2016). The second situation indicates that Fellowes and Associates have valued the intellectual properties of HCHG on 1 March 2014 that is worth 30 million. Another important factor is that the intellectual properties are shown as material to HCHG. On 30 June 2014, the consolidated balance sheet of HCHG includes that same amount of intellectual property. This act of Fellowes and Associates has created a possible threat for Fellowes and Associates. As per the rules and regulations of Fellowes and Associates, an auditor needs to appropriately evaluate the results of previous judgment made by another audit partner. This process demands the revaluation of various assets of the audit client. When the auditors fail to do this, it creates the Self- Review Threat (Ojo, 2015). In the case of second situation, the auditors of Fellowes and Associates have taken the same amount of the intellectual properties on 30 June 2014. However, as per the rules of APES 110, the auditors need to revaluate the inte llectual properties. Hence, this act of Fellowes and Associates has created the Self-Review Threat for the audit firm. This threat is considered as a major offence in audit profession (Dobler, 2014). According to the first situation, the activity of one of the audit associates of Fellowes and Associates has created the threat of Self-interest. This type of threat is occurred when any member of the audit team has financial interest in the property of the audit client. In this particular incident, the corrective action will be to replace that particular account associate with another one. This only corrective action can be taken. However, some safeguards can be adopted to avoid this kind of situations. First, some policies and procedures need to be implemented that will help the organization to identify the staffs having financial interest in the properties of the audit client. Second, the non-audit services to the audit clients need to be minimized in order to prevent this. Last but not the least, there needs to be effective policies and principle that will prohibit the audit employees to establish financial relationship with the audit clients (Tahir, Idris & Ariffin, 2014). The second situation indicates that there is a Self-review threat by the wrong evaluation of the intellectual properties of HCHG. The rule states that other auditors must evaluate the valuation of assets. In the case of Fellowes and Associates, the only safeguards available are that the valuation of the intellectual properties needs to be evaluated by another audit team. There are some safeguards available to prevent this kind of incidents. First, it is necessary to minimize to provide non audit services to audit clients. Second, it needs to be made sure that the audit client takes decisions based on non-audit services on their own responsibility. Third, there should be a cooling off-period time before a senior auditor takes the responsibility of the audit operations. These safeguards can be taken to avoid these kinds of situation (Lawson, Spencer & Turek, 2016). As per the above discussion, it can be seen that the auditors need to maintain the rules and regulations of APES 110 at the time of audit operation. The above report states that there are major two kinds of threats in the audit operation. They are self-interest threat and self-review threat. These two are the major threats that have minimum number of safeguards. However, corrective measures are available to reduce these threats. On the other hand, APES 110 provides some safeguards that can be used to reduce the chance of the occurrence of these threats. APES 110 Code of Ethics for Professional Accountants. (2016).  apesb.org.au. Retrieved 29 December 2016, from https://www.apesb.org.au/uploads/standards/apesb_standards/standard1.pdf Bosse, D. A., & Phillips, R. A. (2016). Agency theory and bounded self-interest.  Academy of Management Review,  41(2), 276-297. Dobler, M. (2014). Auditor-provided non-audit services in listed and private family firms.  Managerial Auditing Journal,  29(5), 427-454. Lawson, B. P., Spencer, A. W., & Turek, M. (2016). Developments in Ethics Guidelines for CPAs.  Journal of Corporate Accounting & Finance,  27(6), 63-71. Louwers, T. J., Ramsay, R. J., Sinason, D. H., Strawser, J. R., & Thibodeau, J. C. (2013).  Auditing and assurance services. New York, NY: McGraw-Hill/Irwin. Ojo, M. (2015). Audits, audit quality and signalling mechanisms: concentrated ownership structures.  American Research Journal of Humanities and Social Sciences,  1(2). Svanberg, J., & Ãâ€"hman, P. (2013). Auditors' time pressure: does ethical culture support audit quality?.  Managerial Auditing Journal,  28(7), 572-591. Tahir, F. A., Idris, K. M., & Ariffin, Z. Z. (2014). Dimensions of Auditor Independence: A Pilot Study.  International Journal of Business and Management,  9(6), 72.

Main differences between perfect competition and monopoly market Essay - 1

Main differences between perfect competition and monopoly market structures - Essay Example The sellers have the aim to provide the products and services as per the highest quality standards and at a minimum price as compared to the competitors. Since all the sellers have the same objective, it creates the scenario of perfect competition where the buyers have the highest bargaining power (McNulty, 1967). In a perfectly competitive market, it is very difficult to choose between the products and services sold in the market. The firms tend to maximize profits under the strict conditions of a perfectly competitive market where the buyers and the sellers are aware of all the information of the market. The barriers to entry and exit from the market is very less. The returns to the investments do not have large scope of enhancement in future (Marshall, 2006). The monopoly market structure resembles the form of market where a certain product or services is manufactured or supplied by a single firm. The monopoly market signifies minimal competition among the firms operating in the market. The buyers also have practically no options to avail substitute products and services. In a monopoly market structure, the business is the price setter and has the ability to charge high prices (Mankiw, 2011). The customers in a monopoly market has the lowest bargaining power as there is no availability of substitute products and services.The government encourage monopoly in certain sectors in order to provide economic benefits to the people by reduction of the market risk. The barriers to entry into the monopoly market is very high. In a monopoly market, it is observed that only one firm tends to dominate the market supply. The price discrimination is observed as characteristics of the monopoly market as the sellers vary the price of the products in comp arison to the quantity of the products (Hall and  Lieberman, 2009). In several jurisdiction, the monopoly form of market structure is prohibited in

The Abolition of Slave Trade Research Paper Example | Topics and Well Written Essays - 750 words

The Abolition of Slave Trade - Research Paper Example The slaves were taken to farms growing cotton, tobacco among others. The Slave trade was very prevalent, and many of the American people contributed to the slave trade especially the settlers. A Slave trade is an important part of the history of America since its impact has affected America greatly. The descendants of slaves are still in America and form part of the American populations. They are American citizens. America was the heart of the slave trade where the slaves were brought from all sides of the continents under the British protectorate. Various other nationalities form part of the American society like the Asians. Most of the people were sold to the slave traders or forceful taken by the slave traders. The slaves contributed greatly to the world war though not of their free will. The abolition of the slave trade was to reduce and remove completely the injustices meted on the Africans who were brought to the shores of America through the Atlantic. They were not treated humanely and therefore were treated as animals. If a slave misbehaved, he or she was beaten like an animal and denied food. The harsh treatment led to a split between the American colonies. They had different interests especially the north did not condone slave trade while the south condoned. Even the passing of the law to abolish slave has halfhearted participation by the South. Slaves who had families were sometimes separately from their spouses especially where they were sold to other owners. The separation of families led to many problems especially with the children who could not be raised by both of their parents. The children were sometimes sold and hence taken away from their families. The slaves had not right to their freedom but belonged to their masters almost forever. The heartless handling of the slaves and the cruelty meted upon them led to an outcry by some congressional representatives. The slaves had no voice and therefore kept silent under while