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The guide to the professional ethics sets out the basic principles regarding how its members must behave. It as well recognizes how its members could be subject to certain threats which could comprise their behavior and propose ways in which members can safeguard themselves against such threats.

Required:

problem 1: In brief describe the five principles that auditors must apply and uphold.

problem 2: Identify and in brief describe the five threats which might comprise auditor’s behavior.

problem 3: describe how the objectivity of the external auditor might be threatened or appear to be threatened:

a) If the firm, its partners or staff have any financial interest in an audit client.

b) The audit fee receivable from JD Co, a private company is Rs 100,000. The total fee income of the audit firm is Rs 700,000. 

Auditing, Accounting

  • Category:- Auditing
  • Reference No.:- M96976

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