Beruflich Dokumente
Kultur Dokumente
CODE OF ETHICS
FOR AUDITORS
1
At the end of this topic, students should be able to:
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What are ethics?
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Why needed for ethical
conduct in profession?
IMPORTANCE EXPLANATION
1. Professionalism
2. Raise public
confidence
3. Improve quality of
services
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FUNDAMENTAL PRINCIPLES OF ETHICS
AND PROFESSIONAL CONDUCT
5
PROFESSIONAL CODE OF
ETHICS AND BEHAVIOUR
6
MIA BY-LAWS
PRINCIPLES EXPLANATION
1. Integrity
2. Objectivity
3. Professional
competence and
due care
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PRINCIPLES EXPLANATION
4. Confidentiality
5. Professional
Independence
6. Professional
behaviour
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INTEGRITY
9
OBJECTIVITY
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PROFESSIONAL COMPETENCE (contd.)
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CONFIDENTIALITY
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CONFIDENTIALITY (contd)
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PROFESSIONAL INDEPENDENCE
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PROFESSIONAL INDEPENDENCE
(contd.)
Independence of mind
Independence in appearance
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PROFESSIONAL BEHAVIOUR
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OTHER MIA BY-LAWS
Publicity
Same defined as advertising.
Solicitation
Firms offer personally to other clients to engage with their services.
Example, having lunch with personal clients and explain about firm’s
services.
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OTHER MIA BY-LAWS
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OTHER MIA BY-LAWS
COMMISSION
a) Discourage the payment or acceptance of
commission by members in their dealings.
i. to obtain a client
ii. To accept a commission for a referral to a client
of products or services
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Factors that may compromised
MIA-by law
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THREATS TO COMPLIANCE
Self-interest threat
Self-review threat
Advocacy threat
Familiarity threat
Intimidation threat
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AREA OF CONTROVERSY
LOW-BALLING
when audit firms charged lower price for their
service which not consistent with the market.
charging low fees so that other competitor
firms are outbid; audit standards become
questionable
Purpose: to attract more clients
Audit time and extent of audit procedures may be
decreased.
Auditor’s integrity, objectivity and independence is
compromised.
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OPINION SHOPPING
approaching another firm for a second opinion
and then pressuring the current auditors to
accept the favourable second opinion
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OFFER MULTIPLE SERVICES
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