1. What is the difference between a principle based ethical framework and a regulation based framework and what are the advantages of using a principle based system? (6 marks)2. Identify and explain the 5 fundamental ethical principles as outlined by the ACCA.
(15 marks)
3. Identify and explain the 5 main threats to auditor ethics as outlined by the ACCA.
(15 marks)
4. Discuss the safeguards that can be put in place to protect auditors ethics.
(8 marks)
5. Discuss the importance of auditor independence in maintaining good ethical standards in auditing. (10 marks)
6. Discuss the role of auditor rotation in maintaining auditor independence.
(8 marks)
7. Identify 4 ways in which an auditors independence could be threatened and the safeguards that can be put in place to protect the ethical position. (12 marks)8. A company that you are auditing is considering throwing a party for your audit team to thank them for their work; do you allow them to do this? Provide them with an explanation for your decision. (6 marks)9. You are starting the preparations for an audit and discover that the audit client still owes you 25% of last years audit fee, explain how this will impact on your actions. (6 marks)10. When preparing to start an audit you discover that you went to University with the CFO of the company, explain if this will have any influence on your carrying out the audit. Justify your decision. (6 marks)