Audit and Assurance Accounting, Finance, SPSS Case Study (Case Study Sample)

Auditing
Question 1
* Ernie Dengate breached the principle of Confidentiality – The member having sought only the permission to release tax working papers, he wasn’t supposed to disclose the other papers to the new accountant, Jago. Section 140 of Australian Accounting Standards, requires all members to refrain from disclosing information confidential to an organization unless seeking relevant information from the client or by the court order. Even after members’ service termination with the client, is not supposed to disclose any information unless permitted or has the professional duty to do so. In this, Ernie should have obtained the relevant permission before disclosing the other working papers, (Louwers, et.al., 2015).
* In regards to Fred Nerk, a public accountant case, it may lead to creating a conflict of interest which can consequently result in a threat to objectivity or professional behavior. The auditing standards require the independent auditor to ascertain and provide an assurance to the books of account. But in this case, the same member doing the bookkeeping is doing the audit, this can adversely affect the opinion of the report by compromising their professional judgment.
* All good does not guarantee the information confidentiality for its client "Branch Company" since the information stored in different computers can easily leak. Thus, the principle of confidentiality is not observed.