Monday, May 9, 2011

Chapter 5 Professional Ehtics - Summary

1. Professional Ethics: competence, due care, objectivity, confidentiality, indenpendence, integrity, impartiality

2. Auditor's threats: conflicts of interests; threats to independence & objectivity (self interest, self review, advocacy, familiarity, intimidation)

3. Safeguards: advice/acknowledge client, chinese walls, additional independence advice, resign; disposing of interest, remove individual from team, inform audit committee, independent partner to review work, disclose, foster culture - disclosure, judge materiality of interest

4. Before accepting Nomination : external & internal factors

5. Procedures after accepting nomination

6. Other procedures: Client screening, management / client's integrity, risk, relationship, ability to perform the work

7. How to verify information on new clients: Enquires of other sources, approval, audit engagement letters

8. Terms of audit engagements

9. Recurring audit

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