Tiêu đề Chapter 11 Question Bank.pdf ✅

○ Requires auditors not to compromise professional judgment because of bias, conflict of interest, or undue influence of others. 3. Professional Competence and Due Care: ○ Requires auditors to attain and maintain professional knowledge and skill at the level required to render competent professional services. ○ Includes acting diligently and responsibly, carefully, thoroughly, and in a timely manner in accordance with professional standards. 4. Confidentiality: ○ Requires auditors to respect the confidentiality of information acquired as a result of professional or business relationships. 5. Professional Behavior: ○ Requires auditors to comply with relevant laws and regulations. ○ Avoids any conduct that they know or should know might discredit the profession. Q5. Professional Behavior is one of the fundamental principles governing professional ethics. Explain its meaning. Also, give an example of a situation where a Chartered Accountant fails to follow this principle. (MTP-March 24) Ans: Principle of Professional Behavior: ● Requires an accountant to comply with relevant laws and regulations and avoid any conduct that the accountant knows or should know might discredit the profession. ● A professional accountant shall not knowingly engage in any employment, occupation, or activity that impairs or might impair the integrity, objectivity, or good reputation of the profession. ● Such activities would be incompatible with the fundamental principles. Example: A Chartered Accountant has conducted an audit of accounts of an entity for a particular year. ICAI issued a letter to him regarding certain matters concerning the audit. He did not reply to the letter despite reminders. ● Failure to reply to the professional body shows a lack of courtesy and professional responsibility. ● In this case, the Chartered Accountant has not followed the principle of Professional Behavior. 11.2 Independence of Auditors Q6.CA Raman Gupta is offered an appointment as an auditor of a company. One of his distant uncles held some shares in the same company. Holding such shares, by a distant relative, is not prohibited under the provisions of the law nor