Ch. 4 Rules of Professional Conduct Flashcards
What are the key principles that are required for professional conduct to provide ethical standards?
- objectivity - must maintain independence
- Professional competence, must maintain their knowedlge and skill
- confidentiality - must maintain confidentiality with respect to the affairs
- professionla behaviour - must behaive in a professional way that would maintain the good reputation fo the profession and serves the public interest
What must be done before providing a fee quotation
CPA Canada members must obtain information regarding the owkr performed, and the services must be rendered on a just and reasonable basis and provide explainations
Billing should not be significantly lower than the fees charged by the predecessor auditor or quoted byt others.
What does CPA Canada limit in regards to advertising?
Should not engage in false advertising or make unsubstantiated claims, nor should they solicit any professional engagement in a manner that is persistent, coercive, or harassing.
What must happen if there are predecessor practitioners
The CPA Canada member must contact the predecessor practitioner before accepting an engagement.
They must ask if there should be a reason why they shouldn’t accept the engagement.
- unless the client has given the previous practictioner permission, they’re only limited to a yes or no answer
What are the types of threats to independence?
self-interest threat - when they have a financial interest in the client
self-review threat - when they’re in a position of having an opinoin of their own work (when they used to work under the client for ex)
advocacy threats - where the practitioner is perceived to promote, or actually promotes, the position of the client
familiarity threats - where a close relationship exists between the practitioner adn the client, creating an environment where it is difficult for the practitioner to behave with professional skepticism
intimidation threats - where the client threatens the practitioner
