The report describes the different kinds of theories such as theories of egoism, the theory of Deontology and the theory of Utilitarianism and applying to the relevant case and the description of the AAA decision-making model and the APES110 which are applicable on the firm of Alex Caldwell, his accountants and the firm Caldwell, Burns and Burns Public Accountants and the report also describes the relevant fundamental principles of APES110, the threats which may occur and the safeguards which Caldwell, Burns and Burns Public Accountants would apply on the protections for its part.
Fiona Willis is a newly qualified Chartered Accountant who has got the job in the firm Caldwell, Burns, and Burns Public Accountants. Alex Caldwell is his boss and she is in charge of the accounts of Marshall Mining Equipment and Services (MME&S) in the company of Hugo Marshall. The below report is describing the different types of theories of egoism, the theory of Deontology and the theory of Utilitarianism and applying to the relevant case and the description of the AAA decision-making model and the APES110 which are applicable on the firm of Alex Caldwell, his accountants and the firm Caldwell, Burns and Burns Public Accountants. The report also describes the relevant fundamental principles of APES110, the threats which may occur, and the safeguards which Caldwell, Burns, and Burns Public Accountants would apply on the protections for its part.
The AAA decision-making model of Alex Caldwell is as follows-
As per Accounting Professional and Ethical Standards Board, Limited (APESB) which issues APES 110 Code of Ethics for Professional Accountants. All members shall comply with AEPS 110 when providing the professional services. It is a kind of framework that guides the professional accountant that what actions have to take in the interest of the public when they became aware of the suspected illegal activity. The requirement to act in the interest of the public means that the auditor has to consider his action affects the client and the employer. They also consider its impact on the employees of the client, investors, and those who are having an indirect interest in the client, for example, broader business and the financial communities and the members of the public. Each person should be reliable on the auditor's work regardless of whether or not they are contract parties between the client and the audit firm. There are five main fundamental principles of the Code of Ethics for Professional Accountant APES110. They are-
There may be some situations in which it becomes difficult for the accountant to comply with the above fundamental principles because the situations create specific threats to the compliances. The situations can be the consequence of many different factors. Some of the threats are-
As per Accounting Professional & Ethical Standards Board, Safeguards are the requirement for the auditor which results that the threats which are identified are at such level at which the compliance with the fundamental principles is compromised. Safeguards will apply there where it is required to eliminate or reduce the threat to an acceptable level. Safeguards ore of two types i.e. the safeguards which are created by profession and another safeguard if of the work environment. An acceptable level is a level at which the third party would conclude regarding all facts and circumstances available to the member that compliance with the fundamental principles is compromised. Alex Caldwell must comply with the above APES 110 as it applies to him, his accountants, and the firm. He must comply with the relevant provisions of the particular section of part1 and also comply the provisions under subheadings 'General' and 'all audit clients’ along with specific provisions under the heading 'audit client' which are not public interest entity or 'audit clients' which are public interest entity and will comply all relevant provisions together with additional provisions. So Alex Caldwell must know all the APES110 provisions which apply to him i.e. the fundamental principles which should they have to follow and the threats which might occur while performing his duties and relevant safeguards which they should know about and at which time they have to apply that. So the compliance of APES 110 is necessary if the firm did not follow the same it has to bear the charges or penalty i.e. criminal or civil penalties for the non-compliances. When Alex Caldwell saw that the Marshall is doing such acts that force him to take the action or where he thinks that the safeguards are necessary because the fundamental principles are compromised, then he should apply them because Marshall is forcing him to apply the safeguards which are provided by the AEPS110.
It has been concluded from the report considering all the theories and the cases that the Marshall has done wrong with Fiona Willis and Alex Caldwell and its firm as because of his ego he has not only resigned her and her firm but also has degraded his reputation in the market. Hence the firm should take legal action against him and he is levied civil and criminal actions under the court of law.
Accounting Professional & Ethical Standards Board. (n.d.). Code of ethics for professional accountants (including independence standards). Retrieved from https://apesb.org.au/uploads/home/02112018000152_APES_110_Restructured_Code_Nov_2018.pdf
APESB. (2010). APES 110 code of ethics for professional accountants. Retrieved from https://apesb.org.au/uploads/standards/apesb_standards/23072019055710_APES_110_Code_of_Ethics_for_Professional_Accountants_December_2010_-_Final.pdf
Kaylan Raman. K. (1994). Utilitarianism and the criminal law in colonial India: A study of the practical Limits of Utilitarian Jurisprudence. Modern Asian Studies.28 (4).739-791. Retrieved from https://www.jstor.org/stable/313021?seq=1
Learning to Give. (n.d.). Egoism. Retrieved from https://www.learningtogive.org/resources/egoism
Seven Pillars Institute. (n.d.). Kantian duty based (deontological) ethics. Retrieved from https://sevenpillarsinstitute.org/kantian-duty-based-deontological-ethics/#:~:text=Introduction,and%20rules%20regardless%20of%20outcome.
University of Texas. (2020). Ethics uncapped. Retrieved from https://ethicsunwrapped.utexas.edu/glossary/integrity
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