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. State the main principals/regulations and apply them to each case. Where appropriate, advise the appropriate course of action for the auditor.

(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 gets an offer to be a director of the client company.