QUESTION 1 THE IMPACT OF CODES OF ETHICS AND EXPERIENCE ON AUDITOR JUDGMENTS The subject above highlights on investigating the impact of the presence of a code of ethics on the quality of auditors' judgments, within the context of the new International Standard on Quality Controls 1 (ISQCI). The International Auditing and Assurance Standards Board (IAASB) has recently introduced ISQC1[1], which aims to help firms establish a system of quality control for audits and reviews of historical financial information as well as other assurance and related services engagements. The standard applies to all members of the International Federation of Accountants (IFAC) and requires all firms to have policies and processes in place to ensure their human resources are both technically and ethically competent (ISQC1, p. 36). The purpose of the standard is to improve auditor performance and audit quality by strengthening the ethical environment. (Extracted from Emerald Insight https://www.emerald.com/insight/content/doi/10.1108/02686900 710759389/full/html) You are required to share a slide and video presentation to demonstrate on the following area:- a) Share on the IFAC requirement on Ethics and Professionalism, with reference to Code of Ethics Standard and International Standard on Quality Control 1 (ISQCI). b) What are the factors under professional and ethical consideration influence the auditors behavior and judgment on overall audit exercise 6. Which ONE of the following properties would be classified as an investment property?* ES (2 points) Purchased land for investment potential. Planning permission has not been obtained for building construction of any kind A new office building used by an insurance entity as its head office which was purchased specifically in the centre of a major city in order to exploit its capital gains potential A stately home used for executive training, but which is no longer required and is now being held for resale A property that has been leased out under a finance lease 7. An entity leases a computer with legal title of the asset passing after two years. The entity usually depreciates computers over three years. Over what period should the computer be depreciated? (2 Points) 1 year 2 years 3 years 4 years 8. According to IAS 38 Intangible assets, which of the following statements is/are correct? * (2 Points) Capitalised development expenditure must be amortised over a period not exceeding five years. Capitalised development costs are shown in the statement of financial position under the heading of non- current assets. If all the conditions specified in IAS 38 are met, development expenditure may be capitalised if the directors decide to do so. Amortisation of capitalised development expenditure will appear as an item in a company's statement of changes in equity 9. According to IAS 38 Intangible assets, which of the following statements about research and development expenditure are correct? * (2 points) Development expenditure recognised as an asset must be amortised over a period not exceeding five years. In deciding whether development expenditure qualifies to be recognised as an asset, it is necessary to consider whether there will be adequate finance available to complete the project. Research expenditure, other than capital expenditure on research facilities, should be recognised as an expense as incurred. 10. Which ONE of the following could be classified as development expenditure in Maxim Ltd's statement of financial position as at 31 March 2020 according to IAS 38 Intangible Assets? * (2 Points) $120,000 spent on developing a prototype and testing a new type of propulsion system. The project needs further work on it as the system is currently not viable. A payment of $50,000 to a local university's engineering faculty to research new environmentally friendly building techniques $35,000 developing an electric bicycle. This is near completion and the product will be launched soon. As this project is first of its kind it is expected to make a loss. $65,000 developing a special type of new packaging for a new energy efficient light bulb. The packaging is expected to reduce M's distribution costs by $35,000 a year. QUESTION 1 THE IMPACT OF CODES OF ETHICS AND EXPERIENCE ON AUDITOR JUDGMENTS The subject above highlights on investigating the impact of the presence of a code of ethics on the quality of auditors' judgments, within the context of the new International Standard on Quality Controls 1 (ISQCI). The International Auditing and Assurance Standards Board (IAASB) has recently introduced ISQC1[1], which aims to help firms establish a system of quality control for audits and reviews of historical financial information as well as other assurance and related services engagements. The standard applies to all members of the International Federation of Accountants (IFAC) and requires all firms to have policies and processes in place to ensure their human resources are both technically and ethically competent (ISQC1, p. 36). The purpose of the standard is to improve auditor performance and audit quality by strengthening the ethical environment. (Extracted from Emerald Insight https://www.emerald.com/insight/content/doi/10.1108/02686900 710759389/full/html) You are required to share a slide and video presentation to demonstrate on the following area:- a) Share on the IFAC requirement on Ethics and Professionalism, with reference to Code of Ethics Standard and International Standard on Quality Control 1 (ISQCI). b) What are the factors under professional and ethical consideration influence the auditors behavior and judgment on overall audit exercise 6. Which ONE of the following properties would be classified as an investment property?* ES (2 points) Purchased land for investment potential. Planning permission has not been obtained for building construction of any kind A new office building used by an insurance entity as its head office which was purchased specifically in the centre of a major city in order to exploit its capital gains potential A stately home used for executive training, but which is no longer required and is now being held for resale A property that has been leased out under a finance lease 7. An entity leases a computer with legal title of the asset passing after two years. The entity usually depreciates computers over three years. Over what period should the computer be depreciated? (2 Points) 1 year 2 years 3 years 4 years 8. According to IAS 38 Intangible assets, which of the following statements is/are correct? * (2 Points) Capitalised development expenditure must be amortised over a period not exceeding five years. Capitalised development costs are shown in the statement of financial position under the heading of non- current assets. If all the conditions specified in IAS 38 are met, development expenditure may be capitalised if the directors decide to do so. Amortisation of capitalised development expenditure will appear as an item in a company's statement of changes in equity 9. According to IAS 38 Intangible assets, which of the following statements about research and development expenditure are correct? * (2 points) Development expenditure recognised as an asset must be amortised over a period not exceeding five years. In deciding whether development expenditure qualifies to be recognised as an asset, it is necessary to consider whether there will be adequate finance available to complete the project. Research expenditure, other than capital expenditure on research facilities, should be recognised as an expense as incurred. 10. Which ONE of the following could be classified as development expenditure in Maxim Ltd's statement of financial position as at 31 March 2020 according to IAS 38 Intangible Assets? * (2 Points) $120,000 spent on developing a prototype and testing a new type of propulsion system. The project needs further work on it as the system is currently not viable. A payment of $50,000 to a local university's engineering faculty to research new environmentally friendly building techniques $35,000 developing an electric bicycle. This is near completion and the product will be launched soon. As this project is first of its kind it is expected to make a loss. $65,000 developing a special type of new packaging for a new energy efficient light bulb. The packaging is expected to reduce M's distribution costs by $35,000 a year