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Question 1

ICAS code of ethics based on Internatioanl ethics standard board for accountant

Answer 1

1. Integrity
2. Objectivity
3. Professional competence and due care
4. Confidentiality
5. Professional behaviour

Question 2

2 facets of independence

Answer 2

Must be independent and seen to be independent

Question 3

FRC ES Part A

Answer 3

A: overreaching principles
- audit firm behave with objectivity and independent (covered person)

Covered person:
- each memeber of engagement team
- EQR
- any involved in audit
- number of other individuals within audit firk

Question 4

Section 1: 6 threats to independence

Answer 4

• self interest - familiarity - management - advocacy - self review - intimidation

Additional requirments:
- ethics partner: each audit firm should have policies to ensure compliance with ES. Nominate a partner for it
- communication: auditors and those charged with governance

Question 5

Section 2-5: where auditor independence might be threatened

Answer 5

2: partner not allowed to join client in KMP within 1 year or 2 for PIE if the date individual ceased to be partner of engagement. Staff should be excluded from covered person role for 2 years if they wanna join.

3: audit partner rotate after 10 years, if not can include additional partner and quality review. Must be documented.

For PIE should be rotated after 5 years can extend to 7 max and must not return to role for 5 years. EQR rotated after 7, any other key related partner after 7 and must not return within 2.