Chapter 5 - Professional ethics

Question 1

IESBA Fundamental Principles

Answer 1

• Integrity
• Objectivity
• Professional competence and due care
• Confidentiality
• Professional behaviour

Question 2

IESBA general threats to objectivity and independence

Answer 2

• self interest
• self review
• advocacy
• familiarity
• intimidation

Question 3

Greenwashing

Answer 3

a public relation play has been used to make either the business or product seem environmentally friendly, without a reduction to the environmental impact being seen

Question 4

Covered persons

Answer 4

include the partners and staff involved in the engagement but could also be:
- any other person placed at the disposal of the audit team
- anyone in the audit firm with supervisory, management or other oversight responsibility for the partners involved in the engagement
- any other person in the firm who is in a position to influence the conduct or outcome of the audit

Question 5

What is a Public Interest Entity

Answer 5

same as a listed company however:
- an issuer whose transferable securities are admitted to trading on a UK regulated market
- a credit institution
- a person who would be an insurance undertaking

higher public interest involved