Is ethics part of the leadership agenda? How to approach Advanced Audit and Assurance When ethics appears in an optional question in the Paper P7 exam, it is often a popular choice for candidates, but their answers often lack detail and are not well applied to the question scenario.
Conclusion Questions containing requirements on ethics are a common feature of Paper P7, and candidates should follow the technical content and exam technique points provided in this article to enhance their understanding of this area of the syllabus.
Our practice is to model a culture based on transparency and integrity, and to retain the recruits that respond to that model. If relevant in a scenario candidates should carefully explain why the threats are so severe, or why appropriate safeguards cannot be employed, remembering that withdrawing from an audit engagement is a last resort and will need to be appropriately justified.
Is anyone with a conflict of interest guiding or directing the compliance and ethics program?
Policies and procedures that will enable the identification of interests or relationships between the firm or members of engagement teams and clients.
The Ethical Standards contain broadly similar guidance to the IESBA Code, and promote the use of a conceptual framework based on the same principles as the IESBA Code for the identification and evaluation of threats, and the use of appropriate safeguards.
The client has competent employees with experience and seniority to make managerial decisions.