Professional Documents
Culture Documents
Professional Accountants
A Presentation
By
Objectives of Professional
Accountants
work
to
the
professionalism
highest
standards
of
Continuation
Continuation
Conceptual Framework
Approach
Self-interest threats
Self-review threats
Advocacy threats
Familiarity threats
Intimidation threats
Continuation
Self-Interest Threat
A Self-interest threat occurs as a result of the
financial or other interests of a professional
accountant or of an immediate or close
family member;
Self-Review Threat
Self-Review Threat occurs occur when a
previous judgment needs to be re-evaluated
by the professional accountant responsible for
that judgment.
Self-Review Threats
Circumstances
Advocacy Threat
An Advocacy Threat occurs when a
professional accountant promotes a position or
opinion to the point that subsequent
objectivity may be compromised.
Examples of circumstances that create
advocacy threats :
Selling, underwriting or otherwise dealing in
financial securities or shares of a client;
Acting as an advocate on behalf of a client in
litigation or disputes with third parties.
Familiarity Threat
Familiarity Threats
Circumstances
Intimidation Threat
Intimidation Threat occur when a professional
accountant may be deterred from acting objectively
by threats, either actual or perceived.
Examples of circumstances:
Being threatened with dismissal or replacement
in relation to a client engagement.
Being threatened with litigation.
Being pressured to reduce inappropriately the
extent of work performed in order to reduce fees.
Safeguards
Safeguards that may eliminate or reduce such
threats to an acceptable level fall into three
broad categories:
Educational,
training
and
experience
requirements for entry into the profession.
Continuing
professional
development
requirements.
Corporate governance regulations.
Professional standards.
Professional or regulatory monitoring and
disciplinary procedures
External review by a third party of the reports,
returns,
communications
or
information
produced by a professional accountant.
Resolution of Ethical
Conflicts
Professional Appointment
Changes in a Professional
Appointment
Before accepting an appointment involving
services that were carried out by another, the
proposed auditor should:
Conflicts of Interest
Second Opinions
Use such assets only for the purpose for which they
are intended.
Application
of
Framework
Specific Situations
to
Cross-Border Activities
Bookkeeping Services
Valuation services
Management decision making functions
Broker-dealer or investment advisor services
Litigation support
Professional
Competence
and
Responsibilities Regarding the Use of
Non-Accountants
If a professional accountant does not have the
competence to perform a specific part of the
professional service, technical advice may be
sought from experts such as other professional
accountants, lawyers, actuaries, engineers,
geologists, and evaluators. However, since the
auditors have ultimate responsibility for the
service, it is his responsibility to see that the
requirements of ethical behavior are followed.
the
PROFESSIONAL
ACCOUNTANTS-IN SERVICE
Conflict of Loyalties
Presentation of Information
A professional accountant is expected to
present financial information fully, honestly
and professionally and so that it will be
understood in its context.
Disciplinary
sanctions
and
common
action