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P7 ethics
 

P7 ethics

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P7 ethics

P7 ethics

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P7 ethics P7 ethics Presentation Transcript

  • Ethics
  • Framework or Rulebook?
  • Framework or Rulebook?• Certainty
  • Framework or Rulebook?• Certainty• Clarity over whats not allowed
  • Framework or Rulebook?• Certainty• Clarity over whats not allowed• Don’t cover all situations
  • Framework or Rulebook?• Certainty• Clarity over whats not allowed• Don’t cover all situations• Can be interpreted too narrowly
  • Framework or Rulebook?• Certainty• Clarity over whats not allowed• Don’t cover all situations• Can be interpreted too narrowly• Not good across national boundaries
  • Don’t in the exam - coppi it’s not ethical!
  • Don’t coppi in the exam - it’s not ethical!
  • Don’t in the exam - it’s not ethical! coppi
  • Fundamental Principles
  • COPPI
  • C onfidentialityOPPI
  • C onfidentialityO bjectivityPPI
  • C onfidentialityO bjectivityP rofessional skill & carePI
  • C onfidentialityO bjectivityP rofessional skill & careP rofessional behaviourI
  • C onfidentialityO bjectivityP rofessional skill & careP rofessional behaviourI ndependence
  • Self Interest
  • Self InterestMember (orclose family)holds shares in the company
  • fegu ardSa
  • Dispose of the Shares fegu ardSa
  • Dispose of the Shares Remove member from engagement team fegu ardSa
  • Self Interest
  • Member (or close family) Self Interestholds loans ordeposits withthe company
  • fegu ardSa
  • Not even a threat if.. fegu ardSa
  • Not even a threat if.. On commercial terms fegu ardSa
  • Not even a threat if.. On commercial terms In normal course of business fegu ardSa
  • Self Interest
  • Firm holds Self Interest loans ordeposits withthe company
  • fegu ardSa
  • Immaterial to firm & client fegu ardSa
  • Immaterial to firm & client Otherwise an external review of work performed needed fegu ardSa
  • fegu ardSa
  • If below not true fegu ardSa
  • If below not true On commercial terms fegu ardSa
  • If below not true On commercial terms In normal course of business fegu ardSa
  • If below not true On commercial terms In normal course of business XSa fegu ard
  • Self Interest
  • Firm / member has business Self Interest relations (eg JV) with the company
  • fegu ardSa
  • Nothing can reduce it fegu ardSa
  • Nothing can reduce it to acceptable level fegu ardSa
  • Nothing can reduce it to acceptable level XSa fegu ard
  • Familiarity
  • Audit member Familiarity becomes employee of client
  • fegu ardSa
  • Revise engagement team fegu ardSa
  • Revise engagement team Independent partner review fegu ardSa
  • Self Interest
  • Audit memberthinks he MAY Self Interest become employee of client
  • fegu ardSa
  • Notify firm fegu ardSa
  • Notify firm Remove from engagement team fegu ardSa
  • Notify firm Remove from engagement team Independent review of his judgements fegu ardSa
  • Notify firm Remove from engagement team Independent review of his judgements Partner no management job for 2 years after audit fegu ardSa
  • Self Review
  • Client Self Review becomesemployee of the firm
  • fegu ardSa
  • Not on engagement for 2 years fegu ardSa
  • Self Review
  • Same senior Self Reviewengagementmember long term
  • fegu ardSa
  • Rotation Partner 5yrs - 5yrs break fegu ardSa
  • Rotation Partner 5yrs - 5yrs break Rotation Senior 7yrs - 2yrs break fegu ardSa
  • Rotation Partner 5yrs - 5yrs break Rotation Senior 7yrs - 2yrs break Independent reviews fegu ardSa
  • Self Interest 5% firmincome(10%) 10% firmincome(15%)
  • Advocacy
  • AdvocacyContingent fees
  • fegu ardSa
  • Disclose to client audit committee fegu ardSa
  • Disclose to client audit committee Independent review fegu ardSa
  • Disclose to client audit committee Independent review External review of fee fegu ardSa
  • Self Review
  • Self ReviewNon-audit work
  • fegu ardSa
  • Independent teams fegu ardSa
  • Independent teams Independent partner review fegu ardSa
  • Independent teams Independent partner review No Managerial decisions fegu ardSa
  • Independent teams Independent partner review No Managerial decisions No subjective valuations fegu ardSa
  • Independent teams Independent partner review No Managerial decisions No subjective valuations Tax work ok fegu ardSa
  • Independent teams Independent partner review No Managerial decisions No subjective valuations Tax work ok No litigation work fegu ardSa
  • Intimidation
  • IntimidationThreatened litigation
  • fegu ardSa
  • Decline an Audit fegu ardSa
  • Decline an Audit Non-audit fegu ardSa
  • Decline an Audit Non-audit Discuss with audit comittee fegu ardSa
  • Decline an Audit Non-audit Discuss with audit comittee Remove individual fegu ardSa
  • Decline an Audit Non-audit Discuss with audit comittee Remove individual External review fegu ardSa
  • Confidentiality
  • ConfidentialityDon’t disclose to 3rd party unless...
  • ConfidentialityDon’t disclose to 3rd party unless... Client Permission
  • ConfidentialityDon’t disclose to 3rd party unless... Client Permission terrorism, money laundering
  • ConfidentialityDon’t disclose to 3rd party unless... Client Permission terrorism, money laundering protects member
  • ConfidentialityDon’t disclose to 3rd party unless... Client Permission terrorism, money laundering protects member legal duty
  • ConfidentialityDon’t disclose to 3rd party unless... Client Permission terrorism, money laundering protects member legal duty in public interest
  • Conflicts of Interest
  • Conflicts of InterestActing for competing clients
  • Conflicts of InterestActing for competing clients Chinese walls
  • Conflicts of InterestActing for competing clients Chinese walls independent review
  • Conflicts of InterestActing for competing clients Chinese walls independent review inform clients