Independence
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Transcript

  • 1. CODE OF ETHICS
    • Cases & Issues of Unjustified
    • Removal of Auditors:
    • Independence of Auditors
  • 2. Unjustified Removal of Auditors
    • Section 224 – Appointment & Remuneration of Auditor
    • Section 224A – Auditor not to appointed except with the approval of the company by special resolution in certain cases.
    • Section 225 – Provisions as to resolutions for appointing or removing auditors
    • Clause (8)&(9) Part I of Schedule I of CA Act,1949
  • 3. Relationship with Other Members in Practice
    • Communication with outgoing Auditor in case of change of auditor
    • Compliance with the requirement of section 224, 224A & 225 of the Companies Act, 1956
  • 4. Communication with outgoing Auditor in case of change of auditor
    • Non-compliance of the Provisions of Section 224, 224A & 225 of the Companies act, 1956
    • Undercutting of Fees
    • Non-payment of undisputed audit fees
    • Issuance of a qualified report
  • 5. Compliance with the requirement of Sec. 224, 224A & 225 of the Companies Act
    • To ensure that the outgoing is properly removed
    • That the guidelines prescribed by the Institute have been complied with
    • To ensure that the incoming auditor is properly appointed.
  • 6. INDEPENDENCE
    • Independence of Mind
    • Independence in Appearance
  • 7. Independence Should be Exhibited in
    • Objectivity
    • Integrity
    • Professional Services
  • 8. Threats of Independence
    • Self - Interest Threat
    • Advocacy Threat
    • Familiarity Threat
    • Intimidation Threat
    • Self Review Threat
  • 9. Safeguards
    • Safeguards Created by the Profession, Legislation or Regulation
    • Safeguards within the Assurance Client
    • Safeguards within the Firm/s own Systems & Procedures
  • 10. Safeguards Created by the Profession, Legislation or Regulation
    • Education, Training & Experience
    • Continuing Education Requirements
    • Professional Standards & Disciplinary Processes.
    • External Review of Firms Quality Control System.
    • Legislation Governing Independence
  • 11. Safeguards within the Assurance Client
    • Competent Employees to make Managerial Decisions.
    • Policies and Procedures for fair Financial Reporting.
    • Internal Procedures
    • Corporate Governance Structure
  • 12. Safeguards within the Firms own Systems & Procedures
    • Firm Leadership
    • Policies & Procedures for Quality Control
    • Documented Independence regarding Identification of threats and Application of Safeguards.
    • Disciplinary Mechanism
  • 13. Objective & Structure
    • Identifying Threats to Independence
    • Evaluating the Threats
    • Applying appropriate Safeguards to eliminate or reduce the threats.
  • 14. Public Interest Public Consists of
    • Clients
    • Credit Granters
    • Government
    • Employers
    • Employees
    • Investors
    • Business
    • Financial Community
  • 15. Objectives
    • Credibility
    • Professionalism
    • Quality of Services
    • Confidence
  • 16. Fundamental Principles
    • Integrity
    • Objectivity
    • Professional Competence and Due Care
    • Confidentiality
    • Professional Behavior
    • Technical Standards.