Topic: Professional Ethics and Code of Conduct for Auditors

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AA – Nov 2014 – L2 – Q5 – Professional Ethics and Code of Conduct for Auditors

Explain threats to auditor independence and provide examples of each.

Question

The ICAN Professional Code of Conduct and Guide for Members gives a list of threats to auditors’ independence, which may impair integrity, objectivity, or the good reputation of the profession.

Required:

Explain the following threats and give TWO examples each of circumstances that may lead to the threats:

a. Self-Interest (3 Marks)

b. Self-Review (3 Marks)

c. Advocacy (3 Marks)

d. Familiarity (3 Marks)

e. Intimidation (3 Marks)

Answer

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Tags: Advocacy, Auditor Independence, Familiarity, Intimidation, Self-Interest, Self-Review
Level: Level 2

Topic: Professional Ethics and Code of Conduct for Auditors

AA – May 2021 – L2 – Q6 – Professional Ethics and Code of Conduct for Auditors (IESBA Code)

Explanation of auditor independence threats, including fees, financial interest, contingent fees, and personal relationships.

Question

Wakaso Nigeria Limited has experienced serious labour turnover which has affected the business of the company in the last twelve months. The most frustrating issue was the resignation of a well-tested Financial Controller of the company close to year-end. Wakaso management is noted for timely financial reporting and rendering of tax returns due to the efficiency and effectiveness of the Financial Controller who was also involved in the preparation of tax computations. The company has been finding it difficult to quickly recruit a new Financial Controller that will match the technical ability of the former accountant. The Managing Director of the company has invited the company’s external auditors to a meeting, intimating them of the plan to employ their services to complete the write-up of the books of accounts and management account pending when they employ a good chartered accountant to handle the financial operations of the company.

The company’s management, in order to ensure timely reporting, has also informed the auditors that to save time and meet cost of operations, the firm’s staff will be accommodated in a five-star hotel with a mouth-watering offer of payment in lieu of feeding as recommended by the audit partner. In addition, the previous year’s audit fee will be doubled and an additional twenty percent payment made if the management accounts and audit work could be completed within three weeks.

The partner of the firm has rejected the offers on the grounds of possible threat to independence. The Managing Director complained to you, as his brother, lamenting that accountants are not good businessmen and uncooperative.

Required:

Discuss the following:

a. Meaning of threats to independence (2 Marks)
b. In relation to independence of auditors:
i. Fees and pricing (4 Marks)
ii. Financial interest (4 Marks)
iii. Contingent fees (2 Marks)
iv. Family and personal relationship (4 Marks)
c. The reasons why the preparation of accounting records and management accounts constitutes a threat to the independence of the auditors. (4 Marks)

Answer

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Tags: Auditor Independence, Ethics, Family Relationships, Fees, Financial Interest
Level: Level 2

Topic: Professional Ethics and Code of Conduct for Auditors
Series: MAY 2021

AA – May 2017 – L2 – SA – Q3 – Professional Ethics and Code of Conduct for Auditors

Identification of threats to ethical principles and safeguards for accountants.

Question

There are a variety of circumstances that could give rise to the threats of self-interest, advocacy, familiarity, and intimidation against the five fundamental principles of integrity, objectivity, personal competence and due care, confidentiality, and professional behaviour as enunciated in the Code of Ethics. There are, however, safeguards created to help the Professional Accountant in such circumstances.

You are required to:

(a) List FIVE safeguards created by the profession and legislation. (5 Marks)
(b) Identify and explain FIVE safeguards that could be created by firms of Chartered Accountants. (10 Marks)
(c) List FIVE possible safeguards that an individual Chartered Accountant could apply. (5 Marks)

Answer

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Tags: Code of Ethics, Familiarity Threat, Professional Conduct, Safeguards, Self-Interest Threat
Level: Level 2

Topic: Professional Ethics and Code of Conduct for Auditors
Series: MAY 2017

AA – Nov 2015 – L2 – Q7 – Professional Ethics and Code of Conduct for Auditors (IESBA Code)

Discussing ethical considerations in providing non-audit services to an audit client and fundamental principles of professional ethics.

Question

Ade, Bala, Chris and Co. are the auditors to Victory Ventures Limited, a chemical manufacturing company. The firm has been carrying out statutory audits for this client for several years. Recently, the company asked the firm to carry out tax planning and compliance advisory services and also perform financial reporting valuation services for the company.

Required:
a. Discuss ethical issues the firm will need to take into consideration in accepting to carry out the new assignments for the client. (5 Marks)
b. Describe the FIVE fundamental ethical principles according to ICAN Professional Code of Conduct and Guide for Members and IFAC Code of Ethics. (5 Marks)
c. Describe the differences between rules-based and principles-based approaches to professional ethics. (5 Marks)

Answer

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Tags: Auditor Independence, Ethical Issues, Non-Audit Services, Professional Ethics
Level: Level 2

Topic: Professional Ethics and Code of Conduct for Auditors
Series: NOV 2015

AA – Nov 2015 – L2 – Q5b – Professional Ethics and Code of Conduct for Auditors

Explaining factors a chartered accountant must consider in resolving ethical conflicts in auditing.

Question

In evaluating compliance with the fundamental principles, a chartered accountant may be required to resolve a conflict in the application of fundamental principles. You are required to state and explain what factors he must take into consideration in his evaluation.

Answer

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Tags: Auditors' responsibilities, Ethical Conflicts, Professional Ethics
Level: Level 2

Topic: Professional Ethics and Code of Conduct for Auditors
Series: NOV 2015

AA – Nov 2015 – L2 – Q5a – Professional Ethics and Code of Conduct for Auditors (IESBA Code)

Discussing the fundamental principle of duty of confidentiality in audit and assurance engagements.

Question

Briefly discuss the fundamental principle of Duty of Confidentiality.

Answer

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Tags: Auditors' responsibilities, Confidentiality, Professional Ethics
Level: Level 2

Topic: Professional Ethics and Code of Conduct for Auditors
Series: NOV 2015

AA – Nov 2016 – L2 – Q2a – Professional Ethics and Code of Conduct for Auditors (IESBA Code)

This question addresses the ethical issues auditors face when accepting clients and engagements, focusing on independence and professional conduct.

Question

Audit practice around the world is generally a business, and its objective is to make profit. However, this does not mean that the practice should automatically accept every audit engagement that is offered to it to maximise profit. Circumstances may arise where it is appropriate to decline the offer of an audit engagement for either commercial or ethical reasons.

Required:
a. Discuss the ethical issues to be considered by an independent auditor in the following matters:
i. Client Acceptance
ii. Engagement Acceptance
(5 Marks)

Answer

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Tags: Auditor's Liability, Client Acceptance, Engagement Acceptance, Ethical Standards, Independence, Professional Ethics
Level: Level 2

Topic: Professional Ethics and Code of Conduct for Auditors
Series: NOV 2016

AA – May 2022 – L2 – SB – Q2 – Professional Ethics and Code of Conduct for Auditors

Discuss the fundamental principles of ICAN Code of Conduct for auditors and under what circumstances auditors may disclose information to third parties.

Question

There are five fundamental principles of ICAN code of conduct for members which auditors must comply with while carrying out their duties as auditors.

a. Explain the requirements for the application of ethics by ICAN members. (5 Marks)
b. Explain the fundamental principles of ICAN code of ethics. (10 Marks)
c. Under what circumstances may an auditor be required to disclose information to a third party? (5 Marks)

Answer

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Tags: Auditor Ethics, Ethical Standards, ICAN Code of Conduct, Professional Responsibilities
Level: Level 2

Topic: Professional Ethics and Code of Conduct for Auditors
Series: MAY 2022

AA – Nov 2020 – L2 – Q6 – Professional Ethics and Code of Conduct for Auditors

Discuss the ICAN code on acting professionally and in the public interest and differentiate between trade and profession.

Question

The ICAN Professional Code of Conduct and Guide for Members requires every member or student of the Institute to always “act professionally” and in “the public interest” in the discharge of their responsibilities.

Required:
a. Explain “act professionally” in relation to the ICAN code. (1 Mark)
b. Discuss the behavioral attributes that will enable an ICAN student to act professionally. (6 Marks)
c. Discuss briefly “acting in the public interest”. (7 Marks)
d. Differentiate between a trade and a profession. (6 Marks)

Answer

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Tags: Professionalism, Public Interest, Trade and Profession
Level: Level 2

Topic: Professional Ethics and Code of Conduct for Auditors
Series: NOV 2020

AA – Nov 2020 – L2 – Q2 – Introduction to Auditing

Explain key concepts of auditing, including the objective of audit, independence, materiality, and the roles of management and auditors.

Question

In a bid to increase the interest of students in auditing, your audit firm has instituted a program in conjunction with universities in Nigeria, whereby the universities provide the firm with an opportunity to speak to students about the audit profession and what it means to be an auditor with a view to getting them interested in pursuing a career in audit when they graduate. During the program, audit personnel interact one-on-one with the students. As an audit senior in the firm, you have been asked to attend one of such programs and present a paper.

Required:
Explain the following in relation to the contents of your paper:
a. The definition and objective of an audit (2 Marks)
b. The concepts of accountability, stewardship, and agency (3 Marks)
c. Independence of the auditor (1 Mark)
d. True and fair view (2 Marks)
e. Materiality (2 Marks)
f. The rights and duties of an external auditor (6 Marks)
g. The responsibilities of management (4 Marks)

Answer

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Tags: Audit Definition, Audit Objective
Level: Level 2

Topic: Introduction to Auditing, Professional Ethics and Code of Conduct for Auditors
Series: NOV 2020

AA – Nov 2014 – L2 – Q5 – Professional Ethics and Code of Conduct for Auditors

Explain threats to auditor independence and provide examples of each.

Question

The ICAN Professional Code of Conduct and Guide for Members gives a list of threats to auditors’ independence, which may impair integrity, objectivity, or the good reputation of the profession.

Required:

Explain the following threats and give TWO examples each of circumstances that may lead to the threats:

a. Self-Interest (3 Marks)

b. Self-Review (3 Marks)

c. Advocacy (3 Marks)

d. Familiarity (3 Marks)

e. Intimidation (3 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Advocacy, Auditor Independence, Familiarity, Intimidation, Self-Interest, Self-Review
Level: Level 2

Topic: Professional Ethics and Code of Conduct for Auditors

AA – May 2021 – L2 – Q6 – Professional Ethics and Code of Conduct for Auditors (IESBA Code)

Explanation of auditor independence threats, including fees, financial interest, contingent fees, and personal relationships.

Question

Required:

Discuss the following:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Auditor Independence, Ethics, Family Relationships, Fees, Financial Interest
Level: Level 2

Topic: Professional Ethics and Code of Conduct for Auditors
Series: MAY 2021

AA – May 2017 – L2 – SA – Q3 – Professional Ethics and Code of Conduct for Auditors

Identification of threats to ethical principles and safeguards for accountants.

Question

You are required to:

(a) List FIVE safeguards created by the profession and legislation. (5 Marks)
(b) Identify and explain FIVE safeguards that could be created by firms of Chartered Accountants. (10 Marks)
(c) List FIVE possible safeguards that an individual Chartered Accountant could apply. (5 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Code of Ethics, Familiarity Threat, Professional Conduct, Safeguards, Self-Interest Threat
Level: Level 2

Topic: Professional Ethics and Code of Conduct for Auditors
Series: MAY 2017

AA – Nov 2015 – L2 – Q7 – Professional Ethics and Code of Conduct for Auditors (IESBA Code)

Discussing ethical considerations in providing non-audit services to an audit client and fundamental principles of professional ethics.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Auditor Independence, Ethical Issues, Non-Audit Services, Professional Ethics
Level: Level 2

Topic: Professional Ethics and Code of Conduct for Auditors
Series: NOV 2015

AA – Nov 2015 – L2 – Q5b – Professional Ethics and Code of Conduct for Auditors

Explaining factors a chartered accountant must consider in resolving ethical conflicts in auditing.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Auditors' responsibilities, Ethical Conflicts, Professional Ethics
Level: Level 2

Topic: Professional Ethics and Code of Conduct for Auditors
Series: NOV 2015

AA – Nov 2015 – L2 – Q5a – Professional Ethics and Code of Conduct for Auditors (IESBA Code)

Discussing the fundamental principle of duty of confidentiality in audit and assurance engagements.

Question

Briefly discuss the fundamental principle of Duty of Confidentiality.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Auditors' responsibilities, Confidentiality, Professional Ethics
Level: Level 2

Topic: Professional Ethics and Code of Conduct for Auditors
Series: NOV 2015

AA – Nov 2016 – L2 – Q2a – Professional Ethics and Code of Conduct for Auditors (IESBA Code)

This question addresses the ethical issues auditors face when accepting clients and engagements, focusing on independence and professional conduct.

Question

Required:
a. Discuss the ethical issues to be considered by an independent auditor in the following matters:
i. Client Acceptance
ii. Engagement Acceptance
(5 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Auditor's Liability, Client Acceptance, Engagement Acceptance, Ethical Standards, Independence, Professional Ethics
Level: Level 2

Topic: Professional Ethics and Code of Conduct for Auditors
Series: NOV 2016

AA – May 2022 – L2 – SB – Q2 – Professional Ethics and Code of Conduct for Auditors

Discuss the fundamental principles of ICAN Code of Conduct for auditors and under what circumstances auditors may disclose information to third parties.

Question

There are five fundamental principles of ICAN code of conduct for members which auditors must comply with while carrying out their duties as auditors.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Auditor Ethics, Ethical Standards, ICAN Code of Conduct, Professional Responsibilities
Level: Level 2

Topic: Professional Ethics and Code of Conduct for Auditors
Series: MAY 2022

AA – Nov 2020 – L2 – Q6 – Professional Ethics and Code of Conduct for Auditors

Discuss the ICAN code on acting professionally and in the public interest and differentiate between trade and profession.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Professionalism, Public Interest, Trade and Profession
Level: Level 2

Topic: Professional Ethics and Code of Conduct for Auditors
Series: NOV 2020

AA – Nov 2020 – L2 – Q2 – Introduction to Auditing

Explain key concepts of auditing, including the objective of audit, independence, materiality, and the roles of management and auditors.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Definition, Audit Objective
Level: Level 2

Topic: Introduction to Auditing, Professional Ethics and Code of Conduct for Auditors
Series: NOV 2020

Topic: Professional Ethics and Code of Conduct for Auditors

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AA – Nov 2014 – L2 – Q5 – Professional Ethics and Code of Conduct for Auditors

Explain threats to auditor independence and provide examples of each.

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AA – May 2021 – L2 – Q6 – Professional Ethics and Code of Conduct for Auditors (IESBA Code)

Explanation of auditor independence threats, including fees, financial interest, contingent fees, and personal relationships.

You're reporting an error for "AA – May 2021 – L2 – Q6 – Professional Ethics and Code of Conduct for Auditors (IESBA Code)"

AA – May 2017 – L2 – SA – Q3 – Professional Ethics and Code of Conduct for Auditors

Identification of threats to ethical principles and safeguards for accountants.

You're reporting an error for "AA – May 2017 – L2 – SA – Q3 – Professional Ethics and Code of Conduct for Auditors"

AA – Nov 2015 – L2 – Q7 – Professional Ethics and Code of Conduct for Auditors (IESBA Code)

Discussing ethical considerations in providing non-audit services to an audit client and fundamental principles of professional ethics.

You're reporting an error for "AA – Nov 2015 – L2 – Q7 – Professional Ethics and Code of Conduct for Auditors (IESBA Code)"

AA – Nov 2015 – L2 – Q5b – Professional Ethics and Code of Conduct for Auditors

Explaining factors a chartered accountant must consider in resolving ethical conflicts in auditing.

You're reporting an error for "AA – Nov 2015 – L2 – Q5b – Professional Ethics and Code of Conduct for Auditors"

AA – Nov 2015 – L2 – Q5a – Professional Ethics and Code of Conduct for Auditors (IESBA Code)

Discussing the fundamental principle of duty of confidentiality in audit and assurance engagements.

You're reporting an error for "AA – Nov 2015 – L2 – Q5a – Professional Ethics and Code of Conduct for Auditors (IESBA Code)"

AA – Nov 2016 – L2 – Q2a – Professional Ethics and Code of Conduct for Auditors (IESBA Code)

This question addresses the ethical issues auditors face when accepting clients and engagements, focusing on independence and professional conduct.

You're reporting an error for "AA – Nov 2016 – L2 – Q2a – Professional Ethics and Code of Conduct for Auditors (IESBA Code)"

AA – May 2022 – L2 – SB – Q2 – Professional Ethics and Code of Conduct for Auditors

Discuss the fundamental principles of ICAN Code of Conduct for auditors and under what circumstances auditors may disclose information to third parties.

You're reporting an error for "AA – May 2022 – L2 – SB – Q2 – Professional Ethics and Code of Conduct for Auditors"

AA – Nov 2020 – L2 – Q6 – Professional Ethics and Code of Conduct for Auditors

Discuss the ICAN code on acting professionally and in the public interest and differentiate between trade and profession.

You're reporting an error for "AA – Nov 2020 – L2 – Q6 – Professional Ethics and Code of Conduct for Auditors"

AA – Nov 2020 – L2 – Q2 – Introduction to Auditing

Explain key concepts of auditing, including the objective of audit, independence, materiality, and the roles of management and auditors.

You're reporting an error for "AA – Nov 2020 – L2 – Q2 – Introduction to Auditing"

AA – Nov 2014 – L2 – Q5 – Professional Ethics and Code of Conduct for Auditors

Explain threats to auditor independence and provide examples of each.

You're reporting an error for "AA – Nov 2014 – L2 – Q5 – Professional Ethics and Code of Conduct for Auditors"

AA – May 2021 – L2 – Q6 – Professional Ethics and Code of Conduct for Auditors (IESBA Code)

Explanation of auditor independence threats, including fees, financial interest, contingent fees, and personal relationships.

You're reporting an error for "AA – May 2021 – L2 – Q6 – Professional Ethics and Code of Conduct for Auditors (IESBA Code)"

AA – May 2017 – L2 – SA – Q3 – Professional Ethics and Code of Conduct for Auditors

Identification of threats to ethical principles and safeguards for accountants.

You're reporting an error for "AA – May 2017 – L2 – SA – Q3 – Professional Ethics and Code of Conduct for Auditors"

AA – Nov 2015 – L2 – Q7 – Professional Ethics and Code of Conduct for Auditors (IESBA Code)

Discussing ethical considerations in providing non-audit services to an audit client and fundamental principles of professional ethics.

You're reporting an error for "AA – Nov 2015 – L2 – Q7 – Professional Ethics and Code of Conduct for Auditors (IESBA Code)"

AA – Nov 2015 – L2 – Q5b – Professional Ethics and Code of Conduct for Auditors

Explaining factors a chartered accountant must consider in resolving ethical conflicts in auditing.

You're reporting an error for "AA – Nov 2015 – L2 – Q5b – Professional Ethics and Code of Conduct for Auditors"

AA – Nov 2015 – L2 – Q5a – Professional Ethics and Code of Conduct for Auditors (IESBA Code)

Discussing the fundamental principle of duty of confidentiality in audit and assurance engagements.

You're reporting an error for "AA – Nov 2015 – L2 – Q5a – Professional Ethics and Code of Conduct for Auditors (IESBA Code)"

AA – Nov 2016 – L2 – Q2a – Professional Ethics and Code of Conduct for Auditors (IESBA Code)

This question addresses the ethical issues auditors face when accepting clients and engagements, focusing on independence and professional conduct.

You're reporting an error for "AA – Nov 2016 – L2 – Q2a – Professional Ethics and Code of Conduct for Auditors (IESBA Code)"

AA – May 2022 – L2 – SB – Q2 – Professional Ethics and Code of Conduct for Auditors

Discuss the fundamental principles of ICAN Code of Conduct for auditors and under what circumstances auditors may disclose information to third parties.

You're reporting an error for "AA – May 2022 – L2 – SB – Q2 – Professional Ethics and Code of Conduct for Auditors"

AA – Nov 2020 – L2 – Q6 – Professional Ethics and Code of Conduct for Auditors

Discuss the ICAN code on acting professionally and in the public interest and differentiate between trade and profession.

You're reporting an error for "AA – Nov 2020 – L2 – Q6 – Professional Ethics and Code of Conduct for Auditors"

AA – Nov 2020 – L2 – Q2 – Introduction to Auditing

Explain key concepts of auditing, including the objective of audit, independence, materiality, and the roles of management and auditors.

You're reporting an error for "AA – Nov 2020 – L2 – Q2 – Introduction to Auditing"

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