An auditor’s client consent in writing is required before an auditor can disclose any information about his client to a third party. Highlight any FIVE obligations imposed by the ethical principle of professional competence and due care on Chartered Accountants.

An auditor’s client consent in writing is required before an auditor can disclose any information about his client to a third party. Highlight any FIVE obligations imposed by the ethical principle of professional competence and due care on Chartered Accountants.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter1: Quality Auditing: Why It Matters

Section: Chapter Questions

Problem 17CYBK

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Similar questions

Give an explanation of the legal foundation for suing a CPA. What defenses does the auditor have to counter such accusations? What is the relationship between these defenses and adherence to the accounting profession's ethical standards?
The fundamental ethical principles that all chartered accountants and registered auditors shouldcomply with are laid down by the SAICA and IRBA code of professional conduct. You are requiredto identify and provide a brief explanation for each of the fundamental ethical principles.
Please list and describe all of the issues that concern accountants and auditors regarding potential liability for their work to their clients.
According to the Code of Professional Conduct of the AICPA, for which type of service may a CPA receive a contingent fee? O Performing an audit of a financial statement. O Performing a review of a financial statement. O Performing an examination of a prospective financial statement. O Seeking a private letter ruling.
Explain the legal basis for a cause of action against an auditor. What are the defenses available to the auditor to rebut such charges? How does adherence to the ethical standards of the accounting profession relate to these defenses?
Which of the following acts by a CPA would be most likely to be a violation of the AICPA Code of Professional Conduct? Select one: A “covered member” owns an immaterial amount of stock in an audit client. Accepting a fee in a tax matter that is contingent upon the result of an administrative proceeding. Assisting a client in preparing a financial forecast. Forming a professional corporation to practice as a CPA.
What are the concepts of legal responsibility applicable to the accountant in his audit functions and other related services? and mention five (5) recommendations so that the auditor can prevent or protect himself from his legal responsibility.
Registered external auditors must have the knowledge and skills to perform their function and should be honest. There are also a number of other attributes or fundamental principles of ethical behavior, which all auditors should have and these are identified in professional external auditing standards issued by IRBA as follows:· integrity· objectivity· professional competence and due care· confidentiality· professional behaviorThe following actions taken by registered external auditors are example of non-compliance with one or more principles listed above; Question 3 Clark Parker the registered auditor in charge of the audit of Datatec Ltd, made racist comments concerningthe client’s staff during the audit planning session.
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Select the necessary words from the list of possibilities to complete the following statements. Statements 1. The AICPA Code of Professional Conduct includes: Principles, Rules and Auditors must be independent of any enterprise and must also parties. 2. 3. A CPA's independence with respect to an enterprise will be impaired if the CPA has any or material indirect financial interest in the enterprise. In evaluating independence, financial interests of a CPA's 4. the CPA. 5. 6. 7. 8. 9. 10. independent to third are ascribed directly to CPAS in public practice should not accept a fee from an audit client that is specified finding. upon a Consulting services for audit clients should be advisory in nature, CPAS should not make decisions for these clients. Retaining a client's accounting records for nonpayment of fees is an act profession. The Accounting Principles Rule requires the CPA to recognize the pronouncements of the Financial Accounting Standards Board and the Government to the CPAS…
Discuss about the rules of independence of auditors in the professional code of conduct?
Identify and explain, in your own words, the five (5) fundamental ethical principles that apply to all professional accountants and list five (5) threats that could be presented to the auditor in the performance of an audit, and explain each one in your words It presents a way to correct them with protection or safeguard.