Accounting Ethics

For the following situation, identify and discuss issues related to external auditors ethics and independence under APES110 Code of Ethics for Professional Accountants and Corporations Act.

(a) identify the ethical issue and discuss relevant threats to independence,

(b) state applicable rules and regulations and

(c) suggest safeguards and actions where applicable.

1. The audit partner holds some shares in the client company through his superannuation fund. The partner has no control over which company the superannuation fund invests in. The indirect investment is immaterial.