The following scenarios may result in non-compliance with one or more of the principles in the code of ethics, by the auditor or accountant. Case 1 Adi is a chartered accountant who is employed by a state owned enterprise, appeared before a commission of enquiry into financial irregularities that occurred under his direction. Adi denied his involvement but there was proof made available which indicated he was lying. Adi acknowledged that he had lied and then went on to state that he was instructed to do so by his superiors. Case 2 Thando attended and gave a speech at a private dinner for Sharons birthday who is the financial director of a company that is a major client of the audit firm that Thando works at. Thando is in charge of the audit that is being performed at Shannons company and they have been close friends for almost five years. Case 3 Asanda is a registered auditor who is in charge of several audits at the audit firm in which she is employed. Asanda is very hardworking and competent. She, however, refuses to have any male members on her audit team as she believes that female team members are more professional and competent as compared to male team members. Case 4 Preneshan is the registered auditor in charge of the audit of Dribble Drabble (Pty) Ltd, he charged the client a fee for audit procedures which he knew had not actually been carried out. Case 5 The financial director of Thirsty Ltd, a juice company, has made an offer to the audit team to take them on a weekend trip to a safari with all expenses paid for, which will become an event that occurs on a yearly basis should all audit deadlines be met annually. Case 6 Ben Benjamin a registered auditor, arranged with some of his clients to pay the fees which he charged for his services in cash. Any client agreeing to do so was not charged VAT and was given a substantial discount Required: Discuss if the chartered accountants or registered auditors in each of the scenarios above, have failed to comply with any of the fundamental ethical principles in the code of conduct..

1. The following scenarios may result in non-compliance with one or more of the principles in the
code of ethics, by the auditor or accountant.
Case 1
Adi is a chartered accountant who is employed by a state owned enterprise, appeared before a
commission of enquiry into financial irregularities that occurred under his direction. Adi denied his
involvement but there was proof made available which indicated he was lying. Adi acknowledged
that he had lied and then went on to state that he was instructed to do so by his superiors.
Case 2
Thando attended and gave a speech at a private dinner for Sharons birthday who is the financial
director of a company that is a major client of the audit firm that Thando works at. Thando is in
charge of the audit that is being performed at Shannons company and they have been close
friends for almost five years.
Case 3
Asanda is a registered auditor who is in charge of several audits at the audit firm in which she is
employed. Asanda is very hardworking and competent. She, however, refuses to have any male
members on her audit team as she believes that female team members are more professional and
competent as compared to male team members.
Case 4
Preneshan is the registered auditor in charge of the audit of Dribble Drabble (Pty) Ltd, he charged
the client a fee for audit procedures which he knew had not actually been carried out.
Case 5
The financial director of Thirsty Ltd, a juice company, has made an offer to the audit team to take
them on a weekend trip to a safari with all expenses paid for, which will become an event that
occurs on a yearly basis should all audit deadlines be met annually.
Case 6
Ben Benjamin a registered auditor, arranged with some of his clients to pay the fees which he
charged for his services in cash. Any client agreeing to do so was not charged VAT and was given
a substantial discount Required: Discuss if the chartered accountants or registered auditors in
each of the scenarios above, have failed to comply with any of the fundamental ethical principles
in the code of conduct.