Scribd Logo
Upload

Welcome to Scribd!

  • 27 views

    Audit 2: Puan Roslina Binti Idris

    Uploaded by

    hakim azmi
    The document discusses the fundamental principles of ethics for professional accountants according to MIA By-Law, which are integrity, objectivity, professional competence and due care, confidentiality, and professional behavior. It provides explanations of each principle and their importance. It also examines the importance of professional ethics in achieving public trust and demands for an ethics-based culture in the accounting profession. Independence, both in appearance and in fact, is crucial for assurance engagements like audits and it requires avoiding circumstances that could compromise an accountant's integrity, objectivity, and professional judgement.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Audit 2: Puan Roslina Binti Idris

    Uploaded by

    hakim azmi
    27 views12 pages
    The document discusses the fundamental principles of ethics for professional accountants according to MIA By-Law, which are integrity, objectivity, professional competence and due care, confidentiality, and professional behavior. It provides explanations of each principle and their importance. It also examines the importance of professional ethics in achieving public trust and demands for an ethics-based culture in the accounting profession. Independence, both in appearance and in fact, is crucial for assurance engagements like audits and it requires avoiding circumstances that could compromise an accountant's integrity, objectivity, and professional judgement.

    Original Title

    CHAPTER 5

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses the fundamental principles of ethics for professional accountants according to MIA By-Law, which are integrity, objectivity, professional competence and due care, confidentiality, and professional behavior. It provides explanations of each principle and their importance. It also examines the importance of professional ethics in achieving public trust and demands for an ethics-based culture in the accounting profession. Independence, both in appearance and in fact, is crucial for assurance engagements like audits and it requires avoiding circumstances that could compromise an accountant's integrity, objectivity, and professional judgement.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    27 views12 pages

    Audit 2: Puan Roslina Binti Idris

    Uploaded by

    hakim azmi
    The document discusses the fundamental principles of ethics for professional accountants according to MIA By-Law, which are integrity, objectivity, professional competence and due care, confidentiality, and professional behavior. It provides explanations of each principle and their importance. It also examines the importance of professional ethics in achieving public trust and demands for an ethics-based culture in the accounting profession. Independence, both in appearance and in fact, is crucial for assurance engagements like audits and it requires avoiding circumstances that could compromise an accountant's integrity, objectivity, and professional judgement.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 12

    AUDIT 2

    PUAN ROSLINA BINTI IDRIS

    DAT5C
    NAME MATRIC NUMBER

    WAN NURUL NISRIN BINTI WAN MOHD 04DAT19F1007


    ZAMANI
    SAMINI A/P SIVAM 04DAT19F1025

    NURUL AIN QISTINA BINTI AHMAD 04DAT19F1031

    NUR HAZIQAH BINTI MUHD AZMI 04DAT19F1037

    NUR AINSYA AMALIN BINTI 04DAT19F1096


    NORBANIZAM
    FATIN NASUHA BINTI ABDULLAH 04DAT19F1028
    There are five fundamental
    5.1 PROVIDE THE principles of ethics for
    DISCUSSION ON THE professional accountants:
    FUNDAMENTAL (a) Integrity
    PRINCIPLES OF (b) Objectivity
    ETHICS AND (c) Professional
    PROFESSIONAL Competence and Due
    Care
    CONDUCT IN (d) Confidentiality
    ACCORDANCE WITH (e) Professional
    Behavior
    MIA BY-LAW
    b) OBJECTIVITY
    a) INTERGRITY
     Principle of objectivity: not to
    ● The principle of integrity is be compromise their professional
    straightforward and honest in judgment because of bias, free of
    professional and business conflict of interest and influence by
    others
    relationship. Integrity also implies fair
     A member shall be and be seen to be
    dealing and truthfulness. free of any interest which cause
    ● No member shall make false and problem to his objectivity.

    misleading report. For example: pressure, multiple services


    c) PROFESIONAL COMPETENCE  Comply with Continuing Professional
    AND DUE CARE Education (CPE) requirement, standards
    ● Strive continually to improve his and guidelines issued by MIA council.
    professional services, keep his
     Due care means should conduct with
    technical knowledge up to date,
    enhance professional competence. courtesy and responsible toward person
    ● Members shall not undertake who engage him and also to the public.
    professional work which he is not  It also includes consideration of
    competent to perform unless the completeness of working paper,
    member obtains such advice and sufficiency of audit evidence,
    assistant as will enable him to carry
    appropriateness of audit report
    out the work completely.
    d) CONFIDENTIALITY e) PROFESSIONAL BEHAVIOUR
    ● To treat client information acquired as • to comply with relevant laws and
    confidential - cannot use or appear to use
    that information for his personal advantage should also perform the job to
    or third party advantage. maintain good name of institute
    Example: Members dealing in the shares of (MIA) as well as other members.
    the company using information obtained
    during his engagement.
    • Auditor should refrain from acting
    in a manner that would discredit
    Confidential information of the client shall the profession.
    be not disclosed except:
    1. Consent to do so obtained from client • Auditors also required to take
    2. There is legal right or duty to disclose. consideration of how they promote
    3. Provisions of written law (non- their services
    compliance, criminal act)
    5.2 Examine the importance of professional
    ethics
    The accountancy profession presents its idea of ethical behaviour as comprising five
    fundamental principles that form a framework for behaving ethically in the professional and
    business environment. It recognizes the importance of ethical behaviour in its codes of
    ethics and training. The Codes of Ethics of the IFAC generally adopts a principles-based
    approach. That is, underlying the detailed guidance in the IFAC Code is a core requirement
    that all professional accountant should behave in accordance with five fundamental ethical
    principles in their professional and business activities. The five fundamental principles are
    integrity, objectivity, professional accountants and due care, co confidentiality , and
    professional behaviour. Professional accountants may need to assess potential actions in
    terms of threats to adherence to those principles and where necessary, apply safeguard or
    refrain from activity.
    The accounting profession is responsible for taking into account the public
    interest. Integrity and ethics must be at the heart of professional life achieve
    public trust, therefore, promoting trust and integrity. There is an expect or
    even demand an ethics-based culture by its members, based around
    underlying values of integrity, transparency and expertise. It is important for
    such behaviour to be adopted by all those in the profession and in other
    business activities, particularly throughout financial reporting chain. Also, in
    practical terms, professional accountants should not be associated with
    reports, returns, communications or other information where they believe
    that the information:
    (a) Contains a materially false or misleading statement;
    (b) Contains statements or information furnished recklessly; or
    (c) Omits or obscures information required to be included where such
    omission or obscurity would be misleading.
    It seems that the behavioural characteristics expected of someone behaving
    with integrity in a professional context should be as follows:
    (a) Be straightforward, honest, and truthful (including to oneself). This is an
    important ingredient of being seen to be credible and reliable;
    (b) Deal fairly. This means behaving in accordance with the norms expected
    by the profession, or personal values if higher. It includes treating people
    on the same basis, without basis;
    (c) Comply with the spirit as well as the letter of laws and regulations;
    (d) Take into consideration the public interest;
    (e) Show consistency in handling tasks;
    (f) Be open-minded and open to consider new information and ideas; and
    (g) Take corrective action, if necessary.

    Accounting and auditing calls for high levels of integrity and honesty.
    5.3: Provide the explanation on the concept of independence and its
    importance :
    -The independence provisions of the Code should seek to strike an appropriate balance
    between strengthening public perception of the integrity and objectivity of an audit, while
    still enabling auditors to carry out their work efficiently and not inhibiting commercial
    activity i.e. they need to be proportionate.-Ensuring auditor independence is as important as
    ensuring that revenues and expenses are properly reported and classified. If the auditor's
    independence is impaired then the company has not satisfied the requirement to file
    financial statements audited by an independent accountant.-Auditor independence is part of
    the foundation of the auditing profession. An independent, reliable, and ethically sound
    audit gives a company credibility and allows the public to trust in the accuracy of the results
    and the integrity of the accounting profession.
    5.4 PROVIDE ● INDEPENDENCE
    THE - Independence is an essential
    SITUATIONS requirement for certain types
    THAT CAN of Icon assurance engagements,

    INFLUENCE such as the external audit or

    INDEPENDENC review of a financial report.

    E IN
    APPEARANCE  Independence requires:

    AND IN FACT ● Independence in Appearance


    ● Independence in Fact
    INDEPENDENCE IN APPEARANCE INDEPENDENCE IN FACT
    Independence in appearance is the Independence in fact is a state of
    avoidance of facts and circumstances mind that permits the provision of an
    that are so significant that a opinion without being affected by
    reasonable and informed third party, influences that compromise
    having knowledge of all relevant professional judgment, allowing an
    information, including applied, would individual to act with integrity, and
    reasonably conclude a firm's, or a exercise objectivity and professional
    member of the assurance teams', scepticism.
    integrate, objectivity or professional
    scepticism had been compromised

    You might also like