Registered external auditors must have the knowledge and skills to perform their function and should be honest. There are also a number of other attributes or fundamental principles of ethical behavior, which all auditors should have and these are identified in professional external auditing standards issued by IRBA as follows: · integrity · objectivity · professional competence and due care · confidentiality · professional behavior The following actions taken by registered external auditors are example of non-compliance with one or more principles listed above; Question 5 Scott Temple, the registered auditor in charge of the audit of Crookes Brothers Ltd, failed to identify the misapplication by the client of an important accounting policy. The misapplication resulted in a material overstatement of the company’s profit.
Registered external auditors must have the knowledge and skills to perform their function and should be honest. There are also a number of other attributes or fundamental principles of ethical behavior, which all auditors should have and these are identified in professional external auditing standards issued by IRBA as follows:
· integrity
· objectivity
· professional competence and due care
· confidentiality
· professional behavior
The following actions taken by registered external auditors are example of non-compliance with one or more principles listed above;
Question 5
Scott Temple, the registered auditor in charge of the audit of Crookes Brothers Ltd, failed to identify the
misapplication by the client of an important accounting policy. The misapplication resulted in a material
overstatement of the company’s profit.
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