The fundamental ethical principles that all chartered accountants and registered auditors should comply with are laid down
Fantastic news! We've Found the answer you've been seeking!
Question:
The fundamental ethical principles that all chartered accountants and registered auditors should comply with are laid down by the SAICA and IRBA code of professional conduct.
These are identified as follows:
i Integrity
ii Objectivity
iii. Professional competence and due care
iv Confidentiality
v Professional behaviour
The following scenarios may result in noncompliance with one or more of the principles listed above by the auditor or accountant.
a Thabo is a chartered accountant who is employed by a stateowned enterprise. He appeared before a commission of enquiry into financial irregularities that occurred under his direction. Thabo denied his involvement but there was proof made available which indicated he was lying. Thabo acknowledged that he had lied and then went on to state that he was instructed to do so by his superiors.
b Meshel attended and gave a speech at a private dinner for Shernices birthday who is the financial director of a company that is a major client of the audit firm that Meshel works at Meshel is in charge of the audit that is being performed at Shernices company and they have been close friends for almost five years.
c Azola Azo is a registered auditor who is in charge of several audits at the audit firm in which she is employed. Azola is very hardworking and competent. She, however, refuses to have any male members on her audit team as she believes that female team members are more professional and competent as compared to male team members.
Required:
For each of the fundamental principles outlined above, provide a concise explanation of what that fundamental principle entails.
Discuss if the chartered accountants or registered auditors in the scenarios above, have failed to comply with any of the ethical principles that are listed from i to iv Substantiate your answer. You should use the marks allocation as a guide when providing your answers.
Related Book For
Auditing and Assurance Services A Systematic Approach
ISBN: 978-1259162343
9th edition
Authors: William Messier, Steven Glover, Douglas Prawitt
Posted Date: