Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for December 2024 exams.
Get your discount code >>

Professional Ethics – ACCA Audit and Assurance (AA)

Reader Interactions

Comments

  2. Your stories are hilarious. Hopefully they’ll help me link the notes to them to remember them better. What an entertaining audit class. Thank you for making it interesting ! 馃榾

    • It can come under both professional competence and due care and professional behaviour.

      It could be, of course, that the existing auditors are wrong and there is a legitimate reason for obtaining another opinion. If auditors discover that opinion shopping is going on they certainly need to be wary. For example, the second auditors could be presented with a different set of facts to those given to the first auditor and those facts could have been edited to conceal problems.

      The rules governing auditor changes should detect problems (ie you just write to existing auditors and ask about the client).

      • thank you for replying. what i meant is is it considered an intimidation threat? plus opinion shopping is something like client go to other auditor because the existing auditor isnt providing then answer client wants? so when he found the answer he wants, he can challenge existing auditor. so is it intimidation threat? thanks for helping.

      • It could be classed as an intimidation threat or a self-interest threat ie you might not want to lose the audit to a more cooperative auditor.

  19. Correction

    On self review; preparing accounting records, I guess this will not be objective for another group will be tempted not to audit the accounting records prepared by their team as it already reviewed. It is the responsibility of management to prepare the FSs. Auditors have just to provide opinion on the FSs.

    How will then shareholders get assurance of management if some accounting records are prepared by auditors.

    If management is failing to prepare the FSs, then this have to be reflected in letter of weakness

    Please assist me, it is giving me headache

    • An auditing firm can be very large. That means that it is possible to have a completely different set of people preparing the FS to thos who audit them. This is suppose to reduce the self-review threat to acceptable levels.

      It is management’s responsbility to prepare the FS but that does not mean they have to prepare them personally. Typically they would ask accounting staff in the company to do it or they could sub-contract this task, for example, to a team from their auditors.

      [It’s better if you ask questions on the Ask ACCA Tutor Forum as that’s what we review regularly].

  20. On self review; preparing accounting records, I guess this will be objective for another group will be tempted not to audit the accounting records prepared their team as it already reviewed. It is the responsibility of management to prepare the FSs. Auditors have just to provide opinion on the FSs. How will then shareholders get assurance of management if some accounting is records are prepared by auditors.

    If management is failing to prepare the FSs, then this have to be reflected in letter of weakness

    Please assist me, it is giving me headache

Leave a Reply