Menu
- 4 Marks
Question
When a firm concludes that a breach has occurred, the firm shall terminate, suspend or eliminate the interest of the relationship that caused the breach and address the consequences of the breach.
Required: Evaluate FOUR (4) factors that determine the significance of a breach of the IESBA code of ethics. (4 marks)
Answer
- The nature and duration of the breach
- Any previous breaches related to the current audit engagement
- Whether a member of the audit team had knowledge of the interest or relationship that caused the breach
- Whether the individual who caused the breach is a member of the audit team
- If they were on the audit team, their role
- The impact of any relevant services on the accounting records or the amounts of the financial statements
- The extent of any threats created by the breach (Any 4 points @ 1 mark each = 4 marks)
- Topic: Rules of professional conduct
- Series: APR 2022
- Uploader: Dotse