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Corporate Audit_APES Professional Ethics - Coggle Diagram
Corporate Audit_APES Professional Ethics
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Created by the individual
They are required to comply with CPD requirement which is using an independent mentor and maintaining contact with legal advisors and professional bodies
In the work environment
Ethic and conduct programmes in the corporate with recruitment procedures. Implement strong internal controls.
Created by the profession, legislation or regulation
The CPD requirements with guidance of education, training and experience. Have to abide the corporate governance codes and professional standards or regulatory monitoring and disiplinary procedures.
Fundamental Principles
Professional competence and due care
Maintain professional knowledge and skill at the level required to ensure that clients or employers receive competent professional service; and Act diligently in accordance with applicable technical and professional standards when providing professional services.
Confidentiality
Respect the confidentiality of information acquired because of professional and business relationships and should not disclose any such information to third parties without proper and specific authority or unless there is a legal or professional right or duty to disclose.
Objectivity
Not allow bias, conflicts of interest or undue influence of others to override professional or business judgement.
Professional behavior
Members should ensure they comply with relevant laws and regulations and should avoid any action that discredits the profession.
Intergrity
Be straightforward and honest in all professional and business relationships. Integrity also implies fair dealing and truthfulness.
Evaluated threats
Advocacy threat
Occurs when members promote a position or opinion to the point that subsequent such as acting as an advocate on behalf of an assurance client in litigation or dispute objectivity may be compromised.
Familiarity threat
the interests of others such as long association with a client leading to over-familiarity with client management such that professional judgement could be compromised.
Self-review threat
Occurs when a previous judgement needs to be re-evaluated by members responsible for that judgement such as performing a service for a client that directly affects the subject matter of an assurance engagement.
Intimidation threat
Occurs when members of the audit teams may be deterred from acting objectively and exercising professional skepticism by threats, actual or perceived, from the directors, officers, or employees of an audit clients. eg Being pressured to reduce inappropriately the extent of work performed in order to reduce fees. In some cases, there might be physical intimidation
Self-interest threat
Occurs when a firm of a member of the assurance team has some financial or other interest in an assurance client such as providing a loan to a client is a financial threat