MGAD10H3 Chapter Notes - Chapter 2: Engagement Letter, Market Capitalization, Financial Statement
1 Dec 2014
School
Department
Course
Professor
Document Summary
Fundamental principles of professional ethics: these principles are: integrity, objectivity (not letting personal prejudices to influence professional judgement), professional competence (maintaining knowledge and skill at an appropriate level), confidentiality, and professional. If a public accountant becomes aware that another designated accountant breached the rules of professional conduct or has acted in a way that would discredit the profession, there is a duty to inform the relevant institute of the breach. Association and independence: association occurs when a public accountant is involved with financial information. Info that is prepared for the client that is then assured without first obtaining management"s approval: advocacy threat the threat that can occur when a firm or its staff acts on behalf of its assurance client. Representing the client in a legal dispute: familiarity threat the threat that can occur when a close relationship exists or develops between the assurance firm and the client eg. Long association between the assurance firm and client.
