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Question: Discuss About The Auditing And Assurance Handbook Australia? Answer: Introducation The requirement of Ethics is perhaps universal but one profession where ethical conduct is perhaps more critical than the others is the accounting profession considering the role that user trust plays in continued relevance of this profession (Arens et. al., 2013). Unethical conduct on the part of the accounting professions can violate the trust of the investors and other users such as lenders and creditors and thus reduce the need for reporting and also auditing. As a result, for accounting professionals various codes of conduct have been established which highlight the model qualities they need to display in their conduct (Cheffers Pakaluk, 2007). One of the most prominent ones in Australian context is APES 110 which has been released by APESB (Accounting Professional and Ethical Standards Board). In view of the above background, the objective is to highlight how APES 110 promotes ethical conduct and thus greater trust from the public which is considered imperative for the profess ion especially in the present challenging environment. It is evident that trust essentially is linked to ethical behaviour on the part of accountants. As a result, the crucial question arises as to the meaning of ethical conduct in the accounting field. One of the theories of ethics named as virtue ethics provides hint in this regards by highlighting key desirable virtues for accountants as courage, wisdom, justice and mastery. The justice in the accounting profession implies that the accountant would use the available knowledge and skills to ensure that a fair representation of the financial statements must be brought forward (Cheffers Pakaluk, 2007). This is supported by the APES 110 through the insertion of section 120 which tend to deal with objectivity. The section on objectivity requires the accounting professional to be objective with regards to the professional judgement application which would involve questioning the key assumptions made by the client and verify the accuracy of the same. Also, this demands that irrespective of the situation, there should not be any impairment in this objective. The situations which compromise these have also been highlighted which involve conflict of interest or in the presence of undue influence (APESB, 2010). Further, courage essentially refers to the use of available skillsets in a manner that tends to serve the informational needs of the external users. This would involve detection of any frauds and also ensuring that there are no mistakes when the accounting or audit work is taking place (Cheffers Pakaluk, 2007).. This is highlighted in section 130 of the APES 110 code which tends to deal with professional competence and due care. As per this objective, it is necessary that the professionals must regularly update their knowledge and skillsets so that the information needs of the client are met (APESB, 2010). Possession of skills and regular updating has special significance for the accounting field considering that the accounting standards are inherently dynamic and also the type of instruments used by companies for financing are also undergoing rapid change and increasing complexity which poses a challenge for the professionals (Caanz, 2016). However, with requisite and updated techn ical knowledge coupled with due care, the accountants can ensure that the informational needs of the users are satisfied in a reliable manner (Gay Simnett, 2012). The next desirable virtue is wisdom which essentially relates to not only available skills but applying them with due care and professionalism (Cheffers Pakaluk, 2007). This is captured by the APES 110 in the form of section 150 which deals with professional behaviour. Hence, it is imperative that the accounting professional must adhere to the various laws and obligations while conducting their work and should not do anything that would discredit the profession (APESB, 2010). Thus, when the accounting professionals make a particular representation to the client, they should be wise enough so view the implications of their actions over the long term which could be potentially disastrous. The last of the desirable virtues which is especially relevant in the current times is self mastery. This is because offlate there have been numerous high profile bankruptcy cases where the contribution of the auditor to the bankruptcy was found to be significant (Cheffers Pakaluk, 2007) . It is ess ential that the independence of the accounting professional should be maintained so that no quid pro quo relation is established with the management (Leung, Coram Cooper, 2012). This is ensured through insertion of section 110 which deals with integrity and is considered the biggest contributor to public trust. The section 110 puts the obligation on the accountants and auditors to be honest in their professional dealings and should not be a part of any initiative which can potentially misguide or mislead the intended users. Hence, this section highlights the emphasis of honest conduct for the accountants conduct (APESB, 2010). The use of APES 110 is relevant from the perspective of increasing trust as it highlights the various threats to independence and also suggests the various mechanisms to ensure that these threats are addressed in the requisite manner. This is essential considering that the trust of people on accountants is dwindling and the primary reason for the same is compromised independence (Arens et. al., 2013).. However, the APES 110 highlights the various situations in which independence may be compromised knowingly or unknowingly. For instance, the accepting gift from client which the client may try to justify as a goodwill gesture is not permitted under this standard (Cheffers Pakaluk, 2007). This is quite useful as the APES 110 considers both actual independence and perceived independence and gives prescribes conduct to safeguard both these. This is imperative especially for a profession which has low trust ratings from users as any perception by the users in relation to independence bein g compromised could be pivotal irrespective whether this has happened or not in actual (Caanz, 2016). Also, various situations which can lead to conflict of interests have been outlined so as to guide the accounting professions on the nature of situations that should be avoided and the code also offers the conduct expected if the accounting professional is caught in such a situation. The list of potential situations is quite exhaustive and tends to cover the common situations that could arise (Gay Simnett, 2012). Thus, APES 110 acts as a useful guide which is coming from an authentic source and can enable ethical decision making on the part of the professionals in relation to the decisions they are expected to make which at times involve ethical dilemma. The priority of interest in this regard is also critical as misreporting at times may help the employees and an honest promoter but the supreme responsibility of the accounting professional should be towards the intended users and the profession and hence ethical conduct must not be compromised for any reason and situation (Leung, C oram Cooper, 2012) The safeguards which are highlighted for the various situations are also pivotal as it enables improvement in the corporate governance of both the firms offering auditing and accounting services along with their clients. This in turn would enable that there is lowering of opportunity to act in a fraudulent manner for the professions which is also essential in order to build trust. Hence, on the side of the firm offering services, the APES 110 expects that there should be ethics training and awareness provided to the professionals besides having reasonable checks and balances in the form of control mechanisms (Arens et. al., 2013). On the side of the client, The APES 110 highlights the appropriate conduct to be directed against accounting and auditing professions so that their independence is not adversely impacted and a cordial professional relationship can be maintained based on mutual trust and respect. Also, there is a dedicated section 240 which pertains to the ethical conduct in relation to remuneration (Caanz, 2016). Typically in cases of frauds, it has been seen that there is high audit fees being paid coupled with lucrative consulting contracts. Conduct in relation to charging the various fees has been outlined which provides clarity to the professionals, firms and clients. Additionally, in relation to the collection of overdue also, proper mechanism has been laid out. These communicate the model behaviour to be adopted and thus provide guidance to conduct of professionals which in turn would prevent fraudulent or unethical conduct (Cheffers Pakaluk, 2007). On account of the above discussion, it may be concluded that indeed APES 110 is a useful tool in order to promote and improve the ethical conduct of the accounting professions. This is achieved through guidance offered by APES 110 on a host of matters. The first one relates to highlighting the key characteristics to be safeguarded which in turn upheld the virtues expected from the professionals in this area. Additionally, it also mentions the various threats to the auditor independence which adversely impacts the trust of the users. Further, it also provides safeguards which ought to be implemented at various levels in order to ensure that auditor independence remains intact. Besides, specific guidance is also offered to the professionals and the firm regarding conduct in various situations so that the user trust is upheld. Hence, APES 110 is a useful tool in relation to improving the trust of public in the accounting profession. References APESB (2010), APESB 110 Code of Ethics for Professional Accountants, APESB Website, Retrieved on September 18, 2017 from https://www.apesb.org.au/uploads/standards/apesb_standards/standardc1.pdf Arens, A., Best, P., Shailer, G. Fiedler,I. (2013). Auditing, Assurance Services and Ethics in Australia (2nd ed.), Sydney: Pearson Australia Caanz, S. (2016), Auditing and Assurance Handbook 2016 Australia (3rd ed.), Sydney: John Wiley Sons Cheffers, M. Pakaluk, M. (2007), Understanding Accounting Ethics (2nd ed.), Sydney: Allen David Press Gay, G. Simnett, R. (2012), Auditing and Assurance Services in Australia (5th ed.), Sydney: McGraw-Hill Education Leung, P., Coram, P. Cooper, B.J. (2012), Modern Auditing and Assurance Services (4th ed.), New York: John Wiley Sons