Professional Ethics, Independence and Audit Quality Flashcards
When individuals believe that the ends justifies the means, and the best action maximises the utility for all parties involved, their beliefs are in line with the theory of:
Utilitarianism
If the action is right because of the process, i.e the intention rather than the outcome
Deontology
Justice and fairness, each person has an equal right to the most extensive liberty compatible with any other person
Social Contract
Ability of person to act morally based on his or her character
Virtue Ethics
What are the five attributes of a profession?
- A systematic body of theory
- Professional Authority and Expertise
- Community Sanction
- Ethical Codes
- A Culture
What are the fundamental principles in the Code of Ethics (PES 1)?
- Integrity
- Objectivity
- Professional Competence and Due Care
- Confidentiality
- Professional Behaviour
What are the types of threats to independence that Auditors may face?
- Self-Interest Threat
- Self-Review Threat
- Advocacy Threat
- Familiarity Threat
- Intimidation Threat
Possible safeguarding actions can be:
- Included in the profession, legislation or regulation
- Developed by the firm
- Engagement-specific
- Within the client’s system
What does the multi-level framework developed by the profession and regulators consist of?
- Standard Setting
- Firm Regulation
- Self or Peer Regulation
- Government Regulation
What is the value of an auditor’s opinion derived from?
- High standards for professional membership
- High standards of performance and conduct required of members
- The power to discipline, and, in some cases, to dismiss from membership those whose performance falls short of required standards