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Ethics (Ethics Principles [Part A] (:star: Professional Competence and…
Ethics
Ethics Principles
[Part A]
:star:
Professional Competence and Due Care
[Section 130]
Exercise of sound judgement and skill in performance of services
Observe technical and professional standards
:star:
Confidentiality
[Section 140]
No disclose to third parties or use info for
personal advantage
e.g. financial benefit - buy shares
:star:
Objectivity
[Section 120]
No conflict, bias, undue influence to override professional judgement
Compromised by impairment of
independence
:star:
Professional Behaviour
[Section 150]
Comply with relevant law and regulations
:star:
Integrity
[Section 110]
Straight forward and honest
5 Threats
:!:
Advocacy
Promote client/ employer's position
:!:
Familiarity
Long/ close relationship-> too sympathetic to their interests/ accepting of work
:!:
Self-review
Not appropriate evaluate results of previous judgement
:!:
Intimidation
Pressures e.g. client offer you other job/ be their employee
:!:
Self-interest
Financial e.g. shares
Other interest e.g. fam have close relationship with client
Public Practice
[Part B]
Independence
[Section 290]
Employment with an audit client
self-interest
familiarity
intimidation
Temporary staff assignment
self-review
Family and personal relationships
self-interest
familiarity
intimidation
Recent services with an audit client
self-interest
self-review
familiarity
Business relationships
self-interest
intimidation
Serving as director or officer of an audit client
self-review
self-interest
Loans and guarantees
self-interest
Long association of senior personnel with an audit client, including partner rotation
self-interest
familiarity
Financial Interests
self-interest threat
Objectivity
[Section210-280]