Code of Ethics for Professional Accountants
da Monet Mayol
1. Intimination
1.1. pressured to agree with client's judgement
1.2. SAFEGUARD: ensure audit engagements are done in accordance of International Standards of Auditing and ensure to gather appropriate evidence.
2. Familiarity
2.1. Spouse holds a key position with client
2.2. SAFEGUARD: rotating the auditors or the senior personnel
3. Advocacy of client
3.1. CPA promotes client securities as part of an initial public offering
3.2. SAFEGUARD: ensure that individual concerned is not entitled to any benefits unless made with predetermined arrangements
4. Self-Interest
4.1. CPA owns stock in the client
4.2. SAFEGUARD: remove the indiviual from the audit team
5. Self-Review
5.1. CPA firm has provided consulting services that relate to audit
5.2. SAFEGUARDS: involving an additional appropriately qualified individual to review the work done
6. Professional Accountant in Public Practice
6.1. Independence
6.1.1. Threats to independence.
6.1.1.1. CPA financial and other personal matters
6.1.1.1.1. Adverse Interest
6.1.1.1.2. Undue Influence-
6.1.1.2. CPA Performance of nonattest services
6.1.1.2.1. Management Participation
6.1.2. Approaches to evaluate threats to independence.
6.1.2.1. Whether the Code directly addresses the threat
6.1.2.2. If the Code does not directly address the threat, the auditor considers whether adequate safeguards exist to eliminate the threat to independence