Stewart Jones & Partners (SJP), is a medium-sized audit firm providing audit, advisory and taxation services to a number of mostly Brisbane-based clients. The audit firm has developed a reputation for their insights and high-quality audits which builds trust in financial markets and business. Nevertheless, 2020 was a challenging year for them as they sought new ways of conducting audits remotely and adapted their audit procedures to suit the COVID climate in which firms operate. As a result, the firm found that, on average, audits were taking longer to complete. To ensure that the firm can continue to provide high quality audits, the partners required all staff to undertake additional training on appropriate audit considerations. All members of the audit firm are required to know and understand the current laws and regulations introduced under COVID that have any implications for business operations and accounting functions. TDG has been a client of SJP for the past 12 years. Ms Christine Stewart, the senior partner of Stewart Jones & Partners, has always been involved with TDG, first as the Engagement Partner and later as a tax advisor. Tommy Jones has served as the engagement partner on TDG audits since 2013. Amy Barnes is the audit manager on the current 2020 TDG audit engagement and leads two trainee accountants Cameron Deck and Emma Francis. Amy has worked on several audit engagements during the COVID pandemic and is regarded by her peers as having a good understanding of appropriate COVID-related audit procedures, and has even been invited by other audit firms to give presentations on key audit procedures 3 to pay attention to, with an emphasis on assessing control risk and controls testing for remote working arrangements and on matters around going concern issues. Emma Francis joined the audit firm ten months ago after graduating with her business degree. She is really excited about the opportunity to work with Amy and learn from her. Whilst at university, she secured part-time administrative and bookkeeping work for TDG over the summer holidays in her second and third year. During her time working there, she met and dated Grant Griffin, the youngest son of Derek Griffin, who was also doing some casual work for the firm. Their relationship ended amicably three months before she started her traineeship at SJP, when Grant was offered a position at Credit Suisse in Sydney. They remain good friends and often hang out on his frequent visits to family in Brisbane. When the borders between NSW and Queensland opened again after the COVID shutdowns, Emma was invited to join Grant and his family on a holiday to Hamilton Island. Emma did not disclose to the partners her former relationship with Grant as he no longer works for TDG Construction, and she did not want to jeopardise her chance to work with Amy.

Evaluate the professional conduct of Stewart Jones & Partners and its other members (excluding Cameron) in terms of the APES 110 Code of Ethics for Professional Accountants. You do not need to discuss any threats to independence, but rather focus your discussion on the evidence that indicates how the auditors have complied with and/or breached the fundamental principles contained within APES 110 Code of Ethics for Professional Accountants. (Approximately 400 to 600 words)