Computerized Extension Of Existing Demand -Myassignmenthelp.Com

Question: Discuss About The Computerized Extension Of Existing Demand? Answer: Introducation According to the provided situation it is seen that Berowra Accountants are ensuring a guaranteed tax refund to their respective clients through using various advertising techniques. In this regard, it can be said that knowing the basic ideas regarding tax refund is important. To explain matters of tax refund, it can be said that tax refund is the difference between the paid tax and the tax that is owed (Galit and Metaban 2012). To identify whether a business corporation is eligible to receive tax refund, it would totally be dependent on the factors like income, profit and the expenses related to the tax of the business organization. It would be impossible for the management of the organization to make sure a refund of tax. Not only is that, the chief responsibility of the auditors to examine the financial accounting of the business and locate the material misstatement and to check for the compliances. Therefore it can be said that for the cases of tax refund, it would surely be a no n-audit service. Because of this according to APES 110 Code of Ethics for Professional Accountants, Section 130, the act of the accountants of Berowra has breached the principle of Professional Competence and Due Care (Han Fan, Woodbine and Cheng 2013). As per this act, the auditors can retain their clients by knowing the limitations of their professions and in this particular case study the accountants of Berowra failed to do so. According to the provided case study, Jamie Harvey, the auditor of a charter accounting organization is been asked to take up the responsibility of the treasurer in a nearby club and Harvey only performs audit of bigger public organizations. In this regard, it must be mentioned that in most cases the athletic clubs are considered as non-profit organizations. According to the APES 110 Professional Appointment, Section 210, when the auditors accept the appointments of a new client, the auditors should examine whether the appointment will influence the compliance of the fundamental principles of auditing. In this particular case study, when the proposal of getting the post of a treasurer gets accepted by the auditor, there was no breach of principles because of some valid reasons (Ottaway 2014). These reasons are that as Harvey holds the post of an auditor in public concern and there are no similarity between the operation styles of the athletic club and the business organization where Harvey is employed. Another major reason is that no fundamental ethical principle will get influenced because in case of the appointment in the organizations that is non-profitable (Kuan 2014). According to the provided case study, a situation is mentioned where the sum payable to the auditor is dependent on the opinion of the outcome of the audit which is appropriate to the audit client Monlec Ltd. It thus discloses that the management of Monlec Ltd is requesting for a audit report that would be favorable for their organization. In this context, it would be necessary to mention that the auditors represent the stakeholders and the investors; and not the business organizations. According to APES 110 Principle of Objectivity, Section 120, the auditors must not show their business and professional judgment for any types of influence, biasness and any types of conflict of interest (Athanasiou 2014). It shows that the judgment made by the auditors should not be influenced by any sort of biasness. According to the case study, the report of the audit provided by the auditor is somewhat favorable for the Monlec Ltd and there is a act of committing a breach of principles of auditing . There should not be any types of infringement of the ethical principles regarding auditing when the auditors provide an opinion that is not biased (Trung 2015). According to the case study, it is seen that Winton Accountants has showen all the reports and papers of Motoring Services to the Chadwick Chartered Accountants. Chadwick Chartered Accountants have the task of reviewing the quality of the audit performed by Winton Accountants. This shows that Chadwick Chartered Accountants have to perform various tests and processes to check the quality of auditing by the Winston Accountants. According to APES 110 Principles of Confidentiality, Section 140, the auditors have the obligations to maintain the confidentiality if the attained information related to the auditing clients. It explains that the auditors should not reveal the gathered information of the audit clients to any third party. According to the case study, the Winton accountants have revealed all the information and vital data related to the Motoring services to Chadwick Chartered Accountants by giving them all the documents of audits (Carey, Monroe and Shailer 2014). Hence, it can be said that Winton Accountants have broken the principles of the trade regarding the auditing with their stipulated actions. According to the provided situation, it is seen that Thornleigh Accountants have replaced Leona Ng with Jane Davis to finish the audit work of Jenkins Ltd due to illness of Leona. The provided situation is that the Thornleigh Accountants management wants to take in Jane Davis in the Audit team to perform the audit works of Jenkins Ltd from the mid weeks of July. This situation increases the fear of interdependence of audit for Thornleigh Accountants. According to APES 110, Self-review Threat, Section 100.12, no member of an audit team can have the right to use the results of an audit work performed by any other member of the same team of audit. Not only that, the act also describes that results of a previous work of audit done by a member of the audit team; cannot be used by any other member of the same audit team. The same rule is applicable to the Thornleigh Accountants as the business organization is planning to utilize the judgment of the performed audit by Jane Davis who has the knowledge of the accounts of the organization (DeFond and Zhang 2014). As per the provided case study it is seen that John Darrow is responsible for performing the audit works of Winmale Ltd. Winmale Ltd has given all the necessary documents and computer files related to the companys net valuation at that time. In this process the person who performs the audit work has to have all the necessary documents regarding the companys assets to accurately perform the task. In this situation, the auditor should not use the documents provided by the client and in this case the client company has provided all the documents. In this situation the auditor might feel pressurized by this act of the management of the Winmale Ltd as they might have provided the documents to get a judgment in their favor. Thus, in this context it can be said that according to APES 110, Section 200.8, this condition might generate Intimidation Threat of the auditors independence (Ojo 2013). According to the provided case study, it is seen that the Chocolate company has requested the auditors to visit the second chocolate show and also requested them to visit the social club of the firm. It requiredto be stated that the auditors must not comprise any sort of entertaining activities with the audit clients. As per APES 110, Self-interest Threat, Section 100.12, there might be a threat to independence of the auditor in case any kind of financial or non-financial concern of the auditors influence the audit opinion (Deumes et al. 2012). According to the case, it can be perceived that the chocolate company might be intending to influence the auditors by tempting them to the entertaining activities with a motive to get favorable audit opinion. Thus, in case, if the auditors accept the invitation of the business organization to attend the social club, they would produce the self-interest threat to the auditors independence. The key concern of the auditors is to scrutinize the financial statements of the business organizations in order to confirm that all the financial statements of the firms are free from any type of material misstatements and they have been arranged by obeying all obligatory regulations. Apart from that, the auditors do not have the accountability to comment on the client organizations financial position if there is no kind of fraudulent activities. In case of Connor Company, it is seen that the organization is severely reliant on the bank overdraft in order to pay off their loans, as they does not have any other option left in this regard. Not only that, the bank requests reimbursement within one months time. It displays that the weak economic condition of Connor Company. Nonetheless, this facet has not formed any consequence on the materiality. The auditor has not come across any type of material misstatement in any financial statements of Connor Company. It suggests that the Connor Company has not influenced their financial statements in order to hide their weak debt-paying circumstance. Therefore, the auditor shall issue Unqualified Audit Opinion for Connor Company (Tsipouridou and Spathis 2014). It should be the responsibility of the firms to arrange and present their financial statements regarding the standards of generally accepted accounting principles. Apart from that the, companies needs to fulfill the accounting protocols of the nation in which they are working. In the situation provided, it is seen that the concern should follow FIFO technique for counting the valuation of inventory, but they are actually following LIFO method like their parent company in America uses it. Due to this reason, the discrepancys effect between the implementation of FIFO and LIFO has affected the assessment of the valuation of the inventory that backs up the material misstatement. Therefore, in this particular area of concern, the auditor has the right to issue adverse opinion, because there are mutually compliance issues and material misstatements present. Nevertheless, except the inventory, there is no sign of any other material misstatement in any of the statements of the business organ ization and there are no compliance issues. Due to reason, the auditor can issue Qualified Audit Opinion. Qualified audit opinion is quite similar to Unqualified Audit Opinion; On the other hand, in Qualified Audit Opinion, the auditor has to increase another paragraph highlights the motive for which the statement is not unqualified (Rahimian, Tavakolnia and Karamlou 2014). It is needed for the business organizations to measure the valuation of their net assets counting on things like land, plant, machineries, buildings and others regularly because of the changes in market price. In the case of Victorian Manufacturing Company, it is perceived that they did not measure the valuation of their factory located in Melbourne for last five years as the directors consider that there are no significant changes in the market value of that factory. Hence, the directors are taking a huge risk that might not possibly be right and can produce a major material misstatement. At the time of piloting the operations of audit, the auditors will require the current value of land and buildings and in the absence of this, the auditors would not be able to deliver accurate audit opinion as it confines their process of scrutiny. Due to this, the auditor will have to issue Disclaimer of Opinion, as they will fail to perform an accurate audit report (Kachelmeier, Schmidt and Vale ntine 2016). References Athanasiou, A., 2014. Avoiding client persuasion.Taxation in Australia,48(10), p.601. Athanasiou, A., 2014. Boy, you're gonna carry that weight a long time!.Taxation in Australia,49(2), p.106. Carey, P.J., Monroe, G.S. and Shailer, G., 2014. Review of Post?CLERP 9 Australian Auditor Independence Research.Australian Accounting Review,24(4), pp.370-380. DeFond, M. and Zhang, J., 2014. A review of archival auditing research.Journal of Accounting and Economics,58(2), pp.275-326. Deumes, R., Schelleman, C., Vander Bauwhede, H. and Vanstraelen, A., 2012. Audit firm governance: Do transparency reports reveal audit quality?.Auditing: A Journal of Practice Theory,31(4), pp.193-214. Galit, S.H. and Sorbe, T., Metabank, 2012.Computerized extension of credit to existing demand deposit accounts, prepaid cards and lines of credit based on expected tax refund proceeds, associated systems and computer program products. U.S. Patent 8,090,649. Han Fan, Y., Woodbine, G. and Cheng, W., 2013. A study of Australian and Chinese accountants attitudes towards independence issues and the impact on ethical judgements.Asian Review of Accounting,21(3), pp.205-222. Kachelmeier, S.J., Schmidt, J.J. and Valentine, K., 2016. The disclaimer effect of disclosing critical audit matters in the auditors report. Kuan, K.T.C., 2014.Auditor independence: an analysis of the adequacy of selected provisions in CLERP 9(Doctoral dissertation, Queensland University of Technology). Ojo, M., 2013. Audits, audit quality and signalling mechanisms: concentrated ownership structures. Ottaway, J., 2014. IMPROVING AUDITOR INDEPENDENCE IN AUSTRALIA: IS MANDATORY AUDIT FIRM ROTATIONTHE BEST OPTION?. RAHIMIAN, N., TAVAKOLNIA, E. and KARAMLOU, M., 2014. Qualified Audit Opinion and Debt Maturity Structure. Trung, N.K., 2015. Ethics Education In The University.International Journal of Scientific Technology Research,4(8), pp.5-10. Tsipouridou, M. and Spathis, C., 2014, March. Audit opinion and earnings management: Evidence from Greece. InAccounting Forum(Vol. 38, No. 1, pp. 38-54). Elsevier