The fundamental ethical principles that all chart the SAICA and IRBA code of professional conduct.
These are identified as follows:
1. Integrity
i. Objectivity
ii. Professional competence and due care
iii. Confidentiality
iv. Professional behavior
Thabo is a chartered accountant who is employed by a state-owned enterprise. He appeared before a inquiry ornc tcd und sdrecn. Thabo eds on bt there was proof made available which indicated he was lying. Thabo acknowledged that he had lied and then went on to state that he was instructed to do so by his superiors. Meshel attended and gave a speech at a private dinner for Shemice's birthday who is the financial director of a company that is a major client of the audit firm that Meshel works at. Meshel is in charge of the audit that is being performed at Shemice's company and they have been close friends for almost five years.
Azola is very hardworking and competent. She, however, refuses to have any male members on her audit team as she believes that female team members are more professional and competent as compared to male team members.
Required: 1.1 For each of the fundamental principles outlined above, provide a concise explanation of what that fundamental principle entails.
any of the ethical principles that are violated from (i) to (iv). Substantiate your answer. You should use the marks allocation as a guide when providing your answers.
QUESTION 2
For each of the situations described below, identify the category of threat to the fundamental principles of the SAICA Code of
a) An auditor has shares in a company which is an audit client of theirs.
b) An accountant has compiled the financial statements for a client and was requested to also audit the statements.
c) The unapproved accountant fails to report a fraud at a client because the perpetrator is a close friend and he is sympathetic to the interest of his friend.
