Midterm Week 2 Flashcards
1
Q
What are the fundamental principals of professional ethics?
A
(PICCO) Professional Behavior: Integrity: Competence: Confidential: Objectivity:
2
Q
What is auditor independence?
A
the ability to act with integrity and objectivity
3
Q
Who does the auditor have a relationship with?
A
shareholders, Board of Directors, Audit Committee, Internal Auditors
4
Q
to claim negligence what must be established?
A
- due care owed
- breach of duty of care
- loss suffered due to breach
5
Q
What is contributory negligence?
A
when both parties (auditor and entity) have been proven to be negligent and are both held responsible
6
Q
Who are third parties?
A
others beyond shareholders that use the FS to make a decision i.e creditors
