Ethics

Question 1

What are the 5 ethical principles listed in APES110?

Answer 1

1. Integrity,
2. Objectivity,
3. Professional Competence and Due Care,
4. Confidentiality,
5. Professional Behaviour

Question 2

What are the 5 ethical threats listed in APES110?

Answer 2

Self-interest, Self-review, Advocacy, Intimidation, Familiarity

Question 3

Intimidation

Answer 3

threat
Undue influence
Threat of dismissal or replacement
Threat of litigation

Question 4

Familiarity

Answer 4

threat

Immediate and close relationships with the client may promote more positive auditing and statement reviews.

Question 5

Advocacy

Answer 5

threat
An auditor portraying a client in an over positive viewpoint.
Not allowed to advocate on behalf on that client
Not allowed promote the client in the eyes of other people

Question 6

Self-Review

Answer 6

threat

Auditing accounts that they previously had input on

Question 7

Self-interest

Answer 7

threat
Financial investment or interest in the business.
Usually conflict of interest laws will attempt to limit this.

Question 8

Integrity

Answer 8

Principle
Being straightforward and honest
Fair dealing and truthfulness

Question 9

Objectivity

Answer 9

Principle

Not to compromise their professional judgement or responsibilities for bias reasons

Question 10

Competence and Due Care

Answer 10

Principle
To act diligently in accordance with and with full understanding of the most current professional business and accounting standards

Question 11

Confidentiality

Answer 11

Principle

Not to disclose confidential information to anyone outside of the direct auditing team

Question 12

Professional Behaviour

Answer 12

Compliance with laws

Avoiding any action that would bring disrepute to the profession