Ch. 4 - Rules of Professional Conduct

Question 1

Key Principles to the Rules

Answer 1

1. Objectivity
2. Integrity and Due Care
3. Professional Competence
4. Confidentiality
5. Professional Behaviour

Question 2

Rules of Professional Conduct - Fees

Answer 2

Should not be significantly lower than competitors

Question 3

Rules of Professional Conduct - Advertising

Answer 3

Should not engage in false or misleading advertising

Question 4

Rules of Professional Conduct - Predecessor Accountant

Answer 4

Must contact the predecessor accountant before accepting engagements

Question 5

Threats to Independence

Answer 5

1. Self-Interest
2. Self-Review
3. Advocacy
4. Familiarity
5. Intimidation

Question 6

Independence Safeguards (3 types)

Answer 6

1. Profession Safeguards (education and training)
2. Client Safeguards (implementation of audit committee and policies/procedures)
3. Practitioner Safeguards (firm policies/procedures)