Competence – NBC Institute

CSME – Nov 2016 – L2 – Q5b – Ethics in Business

Present four fundamental ethical principles for professional accountants and how they motivate compliance.

Question

Present any FOUR fundamental ethical principles that should guide the actions of professional accountants in a way that would motivate a newly qualified accountant to comply with them.

Answer

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Tags: Competence, Ethical Principles, Integrity, Objectivity, Professional Accountants
Level: Level 2

Topic: Corporate Governance, Ethics in Business
Series: NOV 2016

AA – Dec 2022 – L2 – Q5b – Audit and Assurance Risk Environment

Describes the factors that auditors should consider when assessing the competence and objectivity of an expert.

Question

ISA 620: Using the Work of an Expert explains how an auditor may use an expert to obtain audit evidence.

Required:
State THREE (3) factors that the external auditor should consider when assessing the competence and objectivity of the expert.

Answer

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Tags: Audit evidence, Competence, Expert, ISA 620, Objectivity
Level: Level 2

Topic: Audit and Assurance Risk Environment
Series: DEC 2022

AAA – Nov 2020 – L3 – Q1a – Rules of professional conduct | Professional responsibility and liability

Evaluate ethical issues in providing audit and advisory services, and assess auditor liability to a bank if the audit is negligently performed.

Question

You are an audit manager with AA & Co. Chartered Accountants and Business Consultants. You have been assigned to the audit of Western Decors Ltd (WD), a long-established firm of event planning service in the city where your practice is located. The audit of the financial statements for the year ended 31 March 2019 is due to commence shortly. The audit firm is aware that the client has received a loan from the bank in April 2018 and that the bank will rely on the audited financial statements as part of the terms and conditions in the loan agreement.

The partner in charge of AA & Co. has just visited the client and made the following notes during his trip:

The firm has a number of individual and corporate clients outside Accra and has invested heavily in recording and broadcasting equipment to allow some events to be broadcasted over the internet. This facility is now available at all events conducted in WD’s premises and is proving to be very popular. To date, no specific extra charge has been levied for this service but the Chief Executive Officer (CEO) of WD has asked us to prepare a report for him advising on whether it would be practical to charge separately for it; and, if so, the level at which the charge should be set.
Unfortunately, WD’s main supplier of chairs went into liquidation during the year. The Partner said that they were fortunate to be able to find an alternative supplier with whom they entered into a three-year contract for the supply of chairs. At the time of signing the contract, WD considered the contract to be on very favourable terms. However, the supplier is based in Nigeria and the contract was denominated in Naira. Movements in the exchange rate now make the contract look far less attractive and the CEO has requested that we examine the contract to see if there is any way he can legally set it aside.

Required:

i) Critically evaluate any possible ethical issues arising from the client’s requests. (4 marks)

ii) Discuss whether the auditors may be liable to the bank in case the audit was negligently done. (6 marks)

Answer

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Tags: Advisory Services, Audit, Competence, Ethical Issues, Independence
Level: Level 3

Topic: Professional responsibility and liability, Rules of professional conduct
Series: NOV 2020

AAA – May 2016 – L3 – Q2a – Practice management | Professional responsibility and liability

Advise on the matters to consider in relation to accepting a new audit client according to ISQC 1.

Question

Papa Nii and Papa Nana who just qualified as Professional Accountants have decided to enter into professional practice under a firm name Nana Nii & Associates. These two have been trainee accountants of an Audit and Assurance firm for three years before qualifying.

For their first engagement, the CEO of Mberdane Ltd. has nominated Nana Nii & Associates for appointment as auditors of his company though Mberdane Ltd was a former client of their former firm, Papa Nii and Papa Nana were never on the engagement team of Mberdane Ltd. As beginners, Papa Nii and Papa Nana have intended to follow best practices as required by ISQC 1 “Quality control for firms that perform audits and reviews of financial statements, and other assurance related services”. However, they are not clear on the matters that they have to consider in their acceptance decision according to the standard. They have approached you, a senior partner of their former firm, for advice.

Required:
Advise Papa Nii and Papa Nana on the matters that they may have to consider in relation to the acceptance decision on their nomination. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Client Acceptance, Competence, Ethical Requirements, Integrity, ISQC 1
Level: Level 3

Topic: Practice management, Professional responsibility and liability
Series: MAY 2016

CSME – Nov 2016 – L2 – Q5b – Ethics in Business

Present four fundamental ethical principles for professional accountants and how they motivate compliance.

Question

Present any FOUR fundamental ethical principles that should guide the actions of professional accountants in a way that would motivate a newly qualified accountant to comply with them.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Competence, Ethical Principles, Integrity, Objectivity, Professional Accountants
Level: Level 2

Topic: Corporate Governance, Ethics in Business
Series: NOV 2016

AA – Dec 2022 – L2 – Q5b – Audit and Assurance Risk Environment

Describes the factors that auditors should consider when assessing the competence and objectivity of an expert.

Question

ISA 620: Using the Work of an Expert explains how an auditor may use an expert to obtain audit evidence.

Required:
State THREE (3) factors that the external auditor should consider when assessing the competence and objectivity of the expert.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, Competence, Expert, ISA 620, Objectivity
Level: Level 2

Topic: Audit and Assurance Risk Environment
Series: DEC 2022

AAA – Nov 2020 – L3 – Q1a – Rules of professional conduct | Professional responsibility and liability

Evaluate ethical issues in providing audit and advisory services, and assess auditor liability to a bank if the audit is negligently performed.

Question

The partner in charge of AA & Co. has just visited the client and made the following notes during his trip:

The firm has a number of individual and corporate clients outside Accra and has invested heavily in recording and broadcasting equipment to allow some events to be broadcasted over the internet. This facility is now available at all events conducted in WD’s premises and is proving to be very popular. To date, no specific extra charge has been levied for this service but the Chief Executive Officer (CEO) of WD has asked us to prepare a report for him advising on whether it would be practical to charge separately for it; and, if so, the level at which the charge should be set.
Unfortunately, WD’s main supplier of chairs went into liquidation during the year. The Partner said that they were fortunate to be able to find an alternative supplier with whom they entered into a three-year contract for the supply of chairs. At the time of signing the contract, WD considered the contract to be on very favourable terms. However, the supplier is based in Nigeria and the contract was denominated in Naira. Movements in the exchange rate now make the contract look far less attractive and the CEO has requested that we examine the contract to see if there is any way he can legally set it aside.

Required:

i) Critically evaluate any possible ethical issues arising from the client’s requests. (4 marks)

ii) Discuss whether the auditors may be liable to the bank in case the audit was negligently done. (6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Advisory Services, Audit, Competence, Ethical Issues, Independence
Level: Level 3

Topic: Professional responsibility and liability, Rules of professional conduct
Series: NOV 2020

AAA – May 2016 – L3 – Q2a – Practice management | Professional responsibility and liability

Advise on the matters to consider in relation to accepting a new audit client according to ISQC 1.

Question

Required:
Advise Papa Nii and Papa Nana on the matters that they may have to consider in relation to the acceptance decision on their nomination. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Client Acceptance, Competence, Ethical Requirements, Integrity, ISQC 1
Level: Level 3

Topic: Practice management, Professional responsibility and liability
Series: MAY 2016

Question Tag: Competence

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CSME – Nov 2016 – L2 – Q5b – Ethics in Business

Present four fundamental ethical principles for professional accountants and how they motivate compliance.

AA – Dec 2022 – L2 – Q5b – Audit and Assurance Risk Environment

Describes the factors that auditors should consider when assessing the competence and objectivity of an expert.

AAA – Nov 2020 – L3 – Q1a – Rules of professional conduct | Professional responsibility and liability

Evaluate ethical issues in providing audit and advisory services, and assess auditor liability to a bank if the audit is negligently performed.

AAA – May 2016 – L3 – Q2a – Practice management | Professional responsibility and liability

Advise on the matters to consider in relation to accepting a new audit client according to ISQC 1.

CSME – Nov 2016 – L2 – Q5b – Ethics in Business

Present four fundamental ethical principles for professional accountants and how they motivate compliance.

AA – Dec 2022 – L2 – Q5b – Audit and Assurance Risk Environment

Describes the factors that auditors should consider when assessing the competence and objectivity of an expert.

AAA – Nov 2020 – L3 – Q1a – Rules of professional conduct | Professional responsibility and liability

Evaluate ethical issues in providing audit and advisory services, and assess auditor liability to a bank if the audit is negligently performed.

AAA – May 2016 – L3 – Q2a – Practice management | Professional responsibility and liability

Advise on the matters to consider in relation to accepting a new audit client according to ISQC 1.

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CSME – Nov 2016 – L2 – Q5b – Ethics in Business

Present four fundamental ethical principles for professional accountants and how they motivate compliance.

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AA – Dec 2022 – L2 – Q5b – Audit and Assurance Risk Environment

Describes the factors that auditors should consider when assessing the competence and objectivity of an expert.

You're reporting an error for "AA – Dec 2022 – L2 – Q5b – Audit and Assurance Risk Environment"

AAA – Nov 2020 – L3 – Q1a – Rules of professional conduct | Professional responsibility and liability

Evaluate ethical issues in providing audit and advisory services, and assess auditor liability to a bank if the audit is negligently performed.

You're reporting an error for "AAA – Nov 2020 – L3 – Q1a – Rules of professional conduct | Professional responsibility and liability"

AAA – May 2016 – L3 – Q2a – Practice management | Professional responsibility and liability

Advise on the matters to consider in relation to accepting a new audit client according to ISQC 1.

You're reporting an error for "AAA – May 2016 – L3 – Q2a – Practice management | Professional responsibility and liability"

CSME – Nov 2016 – L2 – Q5b – Ethics in Business

Present four fundamental ethical principles for professional accountants and how they motivate compliance.

You're reporting an error for "CSME – Nov 2016 – L2 – Q5b – Ethics in Business"

AA – Dec 2022 – L2 – Q5b – Audit and Assurance Risk Environment

Describes the factors that auditors should consider when assessing the competence and objectivity of an expert.

You're reporting an error for "AA – Dec 2022 – L2 – Q5b – Audit and Assurance Risk Environment"

AAA – Nov 2020 – L3 – Q1a – Rules of professional conduct | Professional responsibility and liability

Evaluate ethical issues in providing audit and advisory services, and assess auditor liability to a bank if the audit is negligently performed.

You're reporting an error for "AAA – Nov 2020 – L3 – Q1a – Rules of professional conduct | Professional responsibility and liability"

AAA – May 2016 – L3 – Q2a – Practice management | Professional responsibility and liability

Advise on the matters to consider in relation to accepting a new audit client according to ISQC 1.

You're reporting an error for "AAA – May 2016 – L3 – Q2a – Practice management | Professional responsibility and liability"

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