Ethics and the legal environment

Case A (ethics and the legal environment)


Don't use plagiarized sources. Get Your Custom Essay on
Ethics and the legal environment
Just from $13/Page
Order Essay

You are an audit manager at Oscar Edwards Vance (OEV), an accounting firm with offices throughout regional Australia in major centres such as Bathurst, Goulburn, Coffs Harbour and Armidale in NSW, Warwick in Queensland and Bendigo in Victoria. OEV is a medium-sized auditing firm by national standards and most of its clients operate within the manufacturing and service industries.

During early July 2019, you met with the audit senior of OEV, Jack Higgins, to discuss a range of findings related to various clients of OEV.

Framed Ltd

Framed Ltd was a wholesaler of office supplies that sold its products to retailers throughout NSW. Framed had only been breaking even for the last two financial years, with the management of cash flow being a significant issue. Despite the cash flow issues (Framed was often close to the limit on its bank overdraft) revenue had been reasonable. Receivables and payables however, had been creeping up. OEV completed their most recent audit and provided an unmodified opinion.

Within a couple of months of year-end, Framed went into liquidation as it was unable to meet its debts. The liquidator of Framed subsequently discovered a major fraud carried out by two sales representatives of Framed who had been entering falsified sales in order to achieve their sales bonuses. Jack tells you that the audit work on sales and receivables was done by Neville, a junior member of the audit division and that sales and receivables had been materially overstated.

Jack informs you that the liquidator of Framed is pursuing damages from OEV, claiming negligent conduct for not detecting the fraud.

Jack also informs you that VicBank had extended the terms of their overdraft to Framed by relying on the audited financial statements and that they too are pursuing OEV for damages for negligence.

Switch Pty Ltd

Jack then tells you he has been working on the audit of Switch Pty Ltd under the supervision of his audit manager, Bruce. During the audit, Jack discovered a material cut-off error which caused revenue to be materially overstated. Jack reminds you that the policy of OEV is to document any material adjustment in the working papers, with the final determination being made by the senior audit partner. Jack also informs you that from his earlier discussions he knows that the management of Switch does not want to make any adjustments.

Jack says that when they finished off the fieldwork, Bruce told Jack not to mention the adjustment in the working papers. Bruce said that Switch only has a small number of shareholders, that he knows from experience the audit partner won’t want to upset an important client and that they really need to finish things off as soon as possible in order to meet deadlines.


Question 1 (5%)

Based on the information provided by Jack in relation to Framed Ltd, and making reference to specific common law and/or auditing standards, prepare a report which addresses the following:

  • An outline of all the elements of the tort of negligence;
  • Whether the liquidators of Framed are likely to succeed in their action against OEV;
  • Whether OEV can reduce their liability to the liquidators of Framed; and
  • Whether VicBank is likely to succeed in their action against OEV.

The Quizlet
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Us

Exemplary Academic Writing Service

At, you are guaranteed of quality service from our professional writers. We maintain consistent communication with customers after placing an order to avoid missing anything that may compromise the quality of delivered work.

Top Writers

Our hiring process is rigorous to maintain the desired quality that has become the core of our business. We expose potential writers to an uncompromising selection process that enables TheQuizlet to pick the best out of the rest. TheQuizlet boasts of a competent team of writers, editors, and professors who work towards accomplishing your goals.

Plagiarism-Free Papers

TheQuizlet has an in-house plagiarism software that lowers the probability of delivering plagiarized papers to our clients. Referencing is guided by the format specified by a customer when placing an order. Our writers are conversant with all referencing formats that include APA, MLA, Chicago, Harvard, and Vancouver among others.

24/7 Customer Support

We understand the importance of effective communication and as such, TheQuizlet has a dedicated customer support department that responds to all client needs. You can easily contact our team through a chat window at the bottom left corner. Additionally, clients can reach us through support’s email or a telephone number available on our contact page. Feel free to contact us at any time and our team of experts will solve all your problems.

Swift Delivery and 100% Money-back Guarantee

When placing an order, ensure that you specify the correct deadline to help our writers work around the provided timeline. At TheQuizlet, we deliver our tasks before the projected deadline to give time for the customer to proofread the work before submission. In the event we cannot deliver a paper on time, we initiate contact with the client to renegotiate a new deadline.

Unlimited and Free Revisions

We urge all our customers to request for a revision whenever they identify a need to amend the paper. Since we understand your concerns, does not charge for revisions. Nonetheless, we encourage customers to be genuine when requesting for revisions.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

TheQuizlet is a one-stop shop for all your writing needs. We tackle each customer’s needs differently to improve the quality of outcomes and meet your expectations.


Academic Help Service

TheQuizlet is committed to delivering quality work on time to ensure our clients get the value for their money.


Admission Essays and Professional Writing

Admission essays are personal, as opposed to other papers. For this reason, our team will request for any information that will enable them to deliver quality work, which allows you to convince the admissions board on why you should be granted the application.


Editing and Proofreading

Our team comprises of qualified researchers, writers, and editors who go through the different papers before delivering them to our clients. Whether your paper is being written from scratch or you want it to be edited, you can trust TheQuizlet for all your needs.


Revision Support

After receiving the final draft, you can request for a revision to incorporate various changes that are aligned with your expectations. All our papers are written in line with the latest writing standards.