Page 268 - DCOM509_ADVANCED_AUDITING

Unit 14: Professional Ethics and Current Issues

Notes
conflicts of interest; documentation; defamation of character; client records; supervision;
staff development and training; consultation; client referral; fraud; termination of services
and client abandonment; practitioner impairment; evaluation and research; and ethical
decision making.

Source: http://www.socialworktoday.com/archive/EoEJanFeb07.shtml

Self Assessment

Fill in the blanks:

1. .............................. involves an intelligent scrutiny of the books of account of a company,
with reference to documents, vouchers and other relevant records.
2. ......................................... is a process which measures the internal and external consistency
of an organisation’s values base.
3. In relation to the specific factors of the ethical environment, studies on codes of ethics have
dominated the ................................ and auditing literature.

14.2 Regulations in Auditing

Non-compliance means acts of omission or commission by the entity which is contrary to the
prevailing laws or regulations. Non-compliance does not include personal misconduct by those
charged with governance, management or employees of the entity. ISA 250 deals with the
auditor’s responsibility to consider laws and regulations in an audit of financial statements.

!
Caution The ISA does not apply to other assurance engagements in which the auditor is
specifically engaged to test and report separately on compliance with specific laws or
regulations.
This International Standard on Auditing (ISA) 250, “Consideration of Laws and Regulations in
Audit of Financial Statements” was prepared by the International Auditing and Assurance
Standards Board (IAASB), an independent standard-setting body within the International
Federation of Accountants (IFAC). The objective of the IAASB is to serve the public interest by
setting high quality auditing and assurance standards and by facilitating the convergence of
international and national standards, thereby enhancing the quality and uniformity of practice
throughout the world and strengthening public confidence in the global auditing and assurance
profession.
The mission of IFAC is to serve the public interest, strengthen the worldwide accountancy
profession and contribute to the development of strong international economies by establishing
and promoting adherence to high quality professional standards, furthering the international
convergence of such standards and speaking out on public interest issues where the profession’s
expertise is most relevant.

Scope of ISA

This International Standard on Auditing (ISA) deals with the auditor’s responsibility to consider
laws and regulations in an audit of financial statements. This ISA does not apply to other
assurance engagements in which the auditor is specifically engaged to test and report separately
on compliance with specific laws or regulations

LOVELY PROFESSIONAL UNIVERSITY 263