Williams associates is a small firm with three

16. Williams & Associates is a small firm with three partners. The audit partner, being the only registered company
auditor in the firm, retired from the firm on 31 August 20X0. On this date the partner wrote a letter to the
Australian Securities and Investments Commission (ASIC) requesting permission to resign as auditor of all of his
clients. ASIC gave its consent to the resignation effective from 31 October 20X0. The auditor of the audit clients in
the period from 31 August to 31 October 20X0 is:
A. the retiring
partner.
B. Williams &
Associates.
C. Australian National Audit Office as
nominee.
D. the next most senior partner of Williams &
Associates.
AACSB: Ethics
Difficulty: Hard
Learning Objective: 03.02 Outline the essence of the accounting bodies' code of ethics
Topic: Accounting bodies’ code of ethics
17. Which of the following is not an ethical decision-making model?
AACSB: Ethics
Difficulty: Easy
Learning Objective: 03.03 Apply sound ethical decision-making techniques
Topic: Applying ethics
18. Which of the following is not a step in the American Accounting Association ethical decision-making model?
AACSB: Ethics
Difficulty: Easy
Learning Objective: 03.03 Apply sound ethical decision-making techniques
Topic: Applying ethics

19. Which of the following is not a key factor to be considered in the framework for decision making in APES 110?
AACSB: Ethics
Difficulty: Easy
Learning Objective: 03.03 Apply sound ethical decision-making techniques
Topic: Applying ethics
20. Independence means that the auditor:
A. must be impartial with respect to the
client.
B. must adopt the attitude of a detective during the
audit.
C. has an obligation solely to third
parties.
D. cannot provide any other professional services to an audit
client.
AACSB: Ethics
Difficulty: Easy
Learning Objective: 03.04 Explain the concept and importance of auditor independence
Topic: Auditor independence
21. An auditor is independent if they are:
AACSB: Ethics
Difficulty: Easy
Learning Objective: 03.04 Explain the concept and importance of auditor independence
Topic: Auditor independence