The following situations may or may not breach the ethical requirements of APES 110.

You need to state whether they are or are not a breach of the ethical requirements of APES110

and if they are a breach of the ethical requirements state which ethical principle has been breached :

1Fred Nerk ,a public accountant in a small country town,provides tax services,management advisory services and does audits for the same clients.Sometimes the same person provides all these

services.

2 . The AllgoodCharteredAccounting firm maintains its records on various computers in its office.It does audits on the Branch company and the Branch company has found its computer facilities are inadequate for its needs and so the Allgood Chartered Accounting firm has maintained certain of the

accounting records of Branch company on its computers.

3.James Jameson ,a public accountant,stays too long at the annual Christmas partyof his firm,the Balgowlah Accountants and consumes too much alcohol and drugs. He subsequently goes into town and is involved in a fight and is charged with assault on a person at a hotel as well as drunken and disorderly behaviour when he attempts to drive off.He is subsequently convicted and sentenced to 3 month in gaol as well as having his license suspended for 1 year.

Indicate the type of opinion that should be expressed in each of the following situations,providing reasons for your choice .

(a) The auditor was unable to obtain confirmations from eightof the clients major customers that

were included in the sample however the auditor was able to satisfy himself about the balances of these accounts using other audit procedures.

(b)The client restricted the auditor from carrying out proceduresto verifytheproperty ,plant and equipment .The property, plant and equipment comprises 35% of total assets..

(c) Management have excluded from the financial report the necessary disclosures in relation to

a contingent liability .If this becomes an actual liability it will have a material effect on the financial

report when it becomes an actual liability.