By-Laws
by-laws
AUDIT 610
ADVANCED AUDITING
ETHICAL CONDUCT
&
CODE OF ETHIC
Prepared for:
Madam Fairuz bt Fauzee
Prepared by:
Nur Rabiah bt Radzi
Nur Hidayah bt Johari
Nurul Hanisah bt Hasan
Rohayu bt Rashid
ACB 8Ba
Question 1
1. There is violation of ethical conduct under professional independence( Financial interest).it is because Wani not take part in the audit of the client and the value of her shares is not material in relation to her husband wealth.
2. According to the By-Law ethical conduct and ethics, there is a violation. It is violated because there is threats to independence which is familiarity threat. As in this case, there is family relationship between Fahmi and hid son who is an engineer in Idaman Bhd.
3. Violation - Independence (intimidation threat - This situation occur when the client start litigation against auditors - Both party cannot operated well and gives the impact on the decision making 4. There have violation of ethical conduct (method of practices). Amien must being competence and due care. Auditor must be qualified under section 8 Company Act 1965, that the applicant must be a member of MIA under category Chartered Accountant. The basic rule to be approved company’s auditor is that the person must be professionally qualified.
QUESTION 2 1) There is a no violation of conduct when Mr. Jaya to obtained personal loan from Bumiputra Sdn,Bhd,a non audit client because it is a non-client audit. It wills a violation of the loan to or from client or guarantee of borrowing for or by client.
2) There is violation of conduct when Mr. Jaya to offered to be an auditor of Aman Sdn.Bhd even he know the staffs are not competent enough to carry out the audit. Because as an auditor they should have a formal education in accounting, adequate practical experience for the work being performed and continuing professional education. The auditor should act diligently in accordance
AUDIT 610
ADVANCED AUDITING
ETHICAL CONDUCT
&
CODE OF ETHIC
Prepared for:
Madam Fairuz bt Fauzee
Prepared by:
Nur Rabiah bt Radzi
Nur Hidayah bt Johari
Nurul Hanisah bt Hasan
Rohayu bt Rashid
ACB 8Ba
Question 1
1. There is violation of ethical conduct under professional independence( Financial interest).it is because Wani not take part in the audit of the client and the value of her shares is not material in relation to her husband wealth.
2. According to the By-Law ethical conduct and ethics, there is a violation. It is violated because there is threats to independence which is familiarity threat. As in this case, there is family relationship between Fahmi and hid son who is an engineer in Idaman Bhd.
3. Violation - Independence (intimidation threat - This situation occur when the client start litigation against auditors - Both party cannot operated well and gives the impact on the decision making 4. There have violation of ethical conduct (method of practices). Amien must being competence and due care. Auditor must be qualified under section 8 Company Act 1965, that the applicant must be a member of MIA under category Chartered Accountant. The basic rule to be approved company’s auditor is that the person must be professionally qualified.
QUESTION 2 1) There is a no violation of conduct when Mr. Jaya to obtained personal loan from Bumiputra Sdn,Bhd,a non audit client because it is a non-client audit. It wills a violation of the loan to or from client or guarantee of borrowing for or by client.
2) There is violation of conduct when Mr. Jaya to offered to be an auditor of Aman Sdn.Bhd even he know the staffs are not competent enough to carry out the audit. Because as an auditor they should have a formal education in accounting, adequate practical experience for the work being performed and continuing professional education. The auditor should act diligently in accordance