Professional Ethics - Codes of ethics, compliance and identifying, evaluating and addressing threats Flashcards
Codes of Ethics and the conceptual framework (IFAC Code of Ethics and FRC Ethical Standard) - International Federation of Accountants (IFAC) Code of Ethics
Requires :
Compliance with five fundamental ethical principles applicable for all professional accountants
Auditors to maintain independence when performing audits
IFAC Code of Ethics sets out a conceptual framework
for identifying, evaluating and addressing threats to the fundamental principles and in the context of audit, to independence
categorises five threats
IFAC Code also:
Identifies a range of facts and circumstances that may threaten fundamental principles and/or independence
Suggests how to identify, evaluate and address threats in given circumstances
Discerns ‘stricter’ requirements for audits of public interest entities (e.g. listed companies, banks)
