Professional Documents
Culture Documents
& Ethical
Requirements
ROSALINDA EVANGELISTA
Resource Person
Ethical requirements
ISQC 1
ISA 220
Ethical requirements
The fundamental principles of professional
ethics, which include:
Integrity
Objectivity
Professional competence and due care
Confidentiality
Professional behavior
IFAC Code
Independence requires:
independence of mind
The state of mind that permits the expression of a
conclusion without being affected by influences that
compromise professional judgment.
independence of appearance
The avoidance of facts and circumstances that are so
significant that a reasonable and informed third party ,
having knowledge of all relevant information, including
safeguards applied, would reasonably conclude a firms or
auditors independence had been compromised.
IFAC Code
Possible threats to
independence
Self-interest threat
Self-review threat
Advocacy threat
Familiarity threat
Intimidation threat
IFAC Code
Self-interest threat
Self-interest threat may occur as a result of the
financial or other interests of a professional
accountant or of an immediate or close family
member.
IFAC Code
Self-review threat
Self-review threat may occur when a previous
judgment needs to be re-evaluated by the
professional accountant responsible for that
judgment.
IFAC Code
Advocacy threat
Advocacy threat may occur when a professional
accountant promotes a position or opinion to
the point that subsequent objectivity may be
compromised.
IFAC Code
Familiarity threat
Familiarity threats may occur when, because of a
close relationship, a professional accountant
becomes too sympathetic to the interests of
others.
IFAC Code
Intimidation threat
Intimidation threat may occur when a
professional accountant may be deterred from
acting objectively by threats, actual or
perceived.
IFAC Code
Safeguards
Two broad categories:
Safeguards created by the profession,
legislation or regulation.
Safeguards in the work environment.
IFAC Code
IFAC Code
IFAC Code
IFAC Code
IFAC Code
IFAC Code
IFAC Code
IFAC Code
IFAC Code
Engagement-specific safeguards
(continuation 1)