3102AFE Auditing

Prepare a report addressed to the Audit Partners, discussing the potential issues raised by the client management, and provide recommendations regarding the appropriate course of action for the auditor. The report should specifically include the following:

1) An executive summary that outlines the purpose of the report, summary of the assessment of the ethical issues and recommendations made.

2) For each issue:

a. Provide a brief (one or two sentences) summary of the most pertinent or key considerations of the potential issue identified.

b. Identify and explain any possible threats to independence for DEL Partners that may arise from each issue (e.g. self-interest threat* ). If the issue does not create any threats to independence, this should also be noted, and supported. 

c. Discuss the rules and regulations that are applicable to the issue (e.g. contained in Corporations Act or APES 110). Be specific in your answer in terms of both the source of rules (i.e. include reference to specific sections and/or sub-sections of the regulation in your answer, e.g APES 110 s290.158* ) and in terms of what the rules stipulate about the issue you are discussing. These should include appropriate safeguards that could reduce these threats to an acceptable level, where relevant.

d. Suggest recommendations to the Audit Partner on the course of action that DEL Partners should take.