Quality and fair discipline — worked answers
Review the reasoning after attempting the practice activity.
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Accounting Ahead | Original study resource | accountingahead.com.au
Quality: worked answers
Question 1 - Reasoning and acceptable responses
1A - Identify the practice
APES 320 applies to the stated non-assurance practice. Tax and compilation services, with no audit, review or
other assurance work, are the deciding facts. For assurance practices identify ASQM 1, relevant ASQM 2
requirements and ASA 220 for audit engagements as applicable. Agreed-upon procedures do not themselves
provide assurance. If a firm performs no audits, reviews or other assurance engagements, APES 320 applies to
engagement quality management.
1B - Correct work and repair the system
Establish what happened, identify affected schedules and arrange appropriate review, correction and
communication. Examine reviewer capacity, workload allocation, supervision and whether required controls
operated. A reminder to be careful does not repair inadequate resources. Make responsibility and review
arrangements workable, then monitor completed work and follow up deficiencies. Other practical responses are
reasonable when they address the stated cause and test their effectiveness.
1C - Separate the issues fairly
A competitor charging less does not by itself establish a professional breach. An ordinary fee-size dispute is
commercial. Evidence suggesting fabricated time records raises a possible dishonesty/professional-obligations
issue that may fall within professional discipline. Obtain documents and the member's response, investigate
impartially and determine whether there is a case to answer through the proper process. A complaint or
suspicious record is not proof of every allegation.
Fairness matters
Procedural fairness, confidentiality, independence and appeal rights support credible discipline. Professional
discipline does not replace legal processes or promise compensation.
Technical basis: Module 1 > 1.9 > Accounting Firm Regulation pp21-22; Professional Discipline and Penalties and Appeals pp23-25.
Original imagined application.
PART 4 | WORKED ANSWERS
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