Reference no: EM133038949

Question - a) Dodgy Dealers requested their accountant Smithy to assist them with the installation of a new computer system. As Smithy had no experience in this area, he delegated the work to an expert Jones who has no accounting expertise but is considered to be a competent software consultant. Since the assignment was highly technical Smithy was not able to review Jones work.

b) Jim's accounting practice provides accounting, auditing, taxation advice and management consulting often all to the same clients.

c) Anthony is the partner on the audit of Double Pay charity. He is also an honorary board member of the charity and plays tennis every week with other board members.

d) Ray and associates is the principal auditor of Hung Lo Pty Ltd and subsidiaries. The parent accounts for 95% of all assets and revenue. Each of the subsidiaries are audited by a different auditor. One subsidiary contained a qualified audit report but as it was immaterial to the group Ray made no mention of it in the consolidated audit opinion.

Required - For each situation discuss possible violations of the ethical rules, legal obligations and or independence requirements.