P7 ethics

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P7 ethics

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  • P7 ethics

    1. 1. Ethics
    2. 2. Framework or Rulebook?
    3. 3. Framework or Rulebook?• Certainty
    4. 4. Framework or Rulebook?• Certainty• Clarity over whats not allowed
    5. 5. Framework or Rulebook?• Certainty• Clarity over whats not allowed• Don’t cover all situations
    6. 6. Framework or Rulebook?• Certainty• Clarity over whats not allowed• Don’t cover all situations• Can be interpreted too narrowly
    7. 7. Framework or Rulebook?• Certainty• Clarity over whats not allowed• Don’t cover all situations• Can be interpreted too narrowly• Not good across national boundaries
    8. 8. Don’t in the exam - coppi it’s not ethical!
    9. 9. Don’t coppi in the exam - it’s not ethical!
    10. 10. Don’t in the exam - it’s not ethical! coppi
    11. 11. Fundamental Principles
    12. 12. COPPI
    13. 13. C onfidentialityOPPI
    14. 14. C onfidentialityO bjectivityPPI
    15. 15. C onfidentialityO bjectivityP rofessional skill & carePI
    16. 16. C onfidentialityO bjectivityP rofessional skill & careP rofessional behaviourI
    17. 17. C onfidentialityO bjectivityP rofessional skill & careP rofessional behaviourI ndependence
    18. 18. Self Interest
    19. 19. Self InterestMember (orclose family)holds shares in the company
    20. 20. fegu ardSa
    21. 21. Dispose of the Shares fegu ardSa
    22. 22. Dispose of the Shares Remove member from engagement team fegu ardSa
    23. 23. Self Interest
    24. 24. Member (or close family) Self Interestholds loans ordeposits withthe company
    25. 25. fegu ardSa
    26. 26. Not even a threat if.. fegu ardSa
    27. 27. Not even a threat if.. On commercial terms fegu ardSa
    28. 28. Not even a threat if.. On commercial terms In normal course of business fegu ardSa
    29. 29. Self Interest
    30. 30. Firm holds Self Interest loans ordeposits withthe company
    31. 31. fegu ardSa
    32. 32. Immaterial to firm & client fegu ardSa
    33. 33. Immaterial to firm & client Otherwise an external review of work performed needed fegu ardSa
    34. 34. fegu ardSa
    35. 35. If below not true fegu ardSa
    36. 36. If below not true On commercial terms fegu ardSa
    37. 37. If below not true On commercial terms In normal course of business fegu ardSa
    38. 38. If below not true On commercial terms In normal course of business XSa fegu ard
    39. 39. Self Interest
    40. 40. Firm / member has business Self Interest relations (eg JV) with the company
    41. 41. fegu ardSa
    42. 42. Nothing can reduce it fegu ardSa
    43. 43. Nothing can reduce it to acceptable level fegu ardSa
    44. 44. Nothing can reduce it to acceptable level XSa fegu ard
    45. 45. Familiarity
    46. 46. Audit member Familiarity becomes employee of client
    47. 47. fegu ardSa
    48. 48. Revise engagement team fegu ardSa
    49. 49. Revise engagement team Independent partner review fegu ardSa
    50. 50. Self Interest
    51. 51. Audit memberthinks he MAY Self Interest become employee of client
    52. 52. fegu ardSa
    53. 53. Notify firm fegu ardSa
    54. 54. Notify firm Remove from engagement team fegu ardSa
    55. 55. Notify firm Remove from engagement team Independent review of his judgements fegu ardSa
    56. 56. Notify firm Remove from engagement team Independent review of his judgements Partner no management job for 2 years after audit fegu ardSa
    57. 57. Self Review
    58. 58. Client Self Review becomesemployee of the firm
    59. 59. fegu ardSa
    60. 60. Not on engagement for 2 years fegu ardSa
    61. 61. Self Review
    62. 62. Same senior Self Reviewengagementmember long term
    63. 63. fegu ardSa
    64. 64. Rotation Partner 5yrs - 5yrs break fegu ardSa
    65. 65. Rotation Partner 5yrs - 5yrs break Rotation Senior 7yrs - 2yrs break fegu ardSa
    66. 66. Rotation Partner 5yrs - 5yrs break Rotation Senior 7yrs - 2yrs break Independent reviews fegu ardSa
    67. 67. Self Interest 5% firmincome(10%) 10% firmincome(15%)
    68. 68. Advocacy
    69. 69. AdvocacyContingent fees
    70. 70. fegu ardSa
    71. 71. Disclose to client audit committee fegu ardSa
    72. 72. Disclose to client audit committee Independent review fegu ardSa
    73. 73. Disclose to client audit committee Independent review External review of fee fegu ardSa
    74. 74. Self Review
    75. 75. Self ReviewNon-audit work
    76. 76. fegu ardSa
    77. 77. Independent teams fegu ardSa
    78. 78. Independent teams Independent partner review fegu ardSa
    79. 79. Independent teams Independent partner review No Managerial decisions fegu ardSa
    80. 80. Independent teams Independent partner review No Managerial decisions No subjective valuations fegu ardSa
    81. 81. Independent teams Independent partner review No Managerial decisions No subjective valuations Tax work ok fegu ardSa
    82. 82. Independent teams Independent partner review No Managerial decisions No subjective valuations Tax work ok No litigation work fegu ardSa
    83. 83. Intimidation
    84. 84. IntimidationThreatened litigation
    85. 85. fegu ardSa
    86. 86. Decline an Audit fegu ardSa
    87. 87. Decline an Audit Non-audit fegu ardSa
    88. 88. Decline an Audit Non-audit Discuss with audit comittee fegu ardSa
    89. 89. Decline an Audit Non-audit Discuss with audit comittee Remove individual fegu ardSa
    90. 90. Decline an Audit Non-audit Discuss with audit comittee Remove individual External review fegu ardSa
    91. 91. Confidentiality
    92. 92. ConfidentialityDon’t disclose to 3rd party unless...
    93. 93. ConfidentialityDon’t disclose to 3rd party unless... Client Permission
    94. 94. ConfidentialityDon’t disclose to 3rd party unless... Client Permission terrorism, money laundering
    95. 95. ConfidentialityDon’t disclose to 3rd party unless... Client Permission terrorism, money laundering protects member
    96. 96. ConfidentialityDon’t disclose to 3rd party unless... Client Permission terrorism, money laundering protects member legal duty
    97. 97. ConfidentialityDon’t disclose to 3rd party unless... Client Permission terrorism, money laundering protects member legal duty in public interest
    98. 98. Conflicts of Interest
    99. 99. Conflicts of InterestActing for competing clients
    100. 100. Conflicts of InterestActing for competing clients Chinese walls
    101. 101. Conflicts of InterestActing for competing clients Chinese walls independent review
    102. 102. Conflicts of InterestActing for competing clients Chinese walls independent review inform clients

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