Based on the hypothetical scenario (Attach file), the topics related the fundamental principles of professional ethics you need to reflect on the following:
Professional competence and due care is one of the fundamental principles of professional ethics as stated in APES110.
1. Discuss why it is important for an auditor to adhere to this principle when working on an audit engagement. You need to provide two justifications in your discussion. You also need to provide specific examples to support your argument. (The example can be the hypothetical examples or real world examples)
2. Explain the difference between professional behaviour and professional competence and due care principles.
Length Maximum 600 words. Reference list is not included in your word limit.
One of the sub-topics relates to APES 110 Code of Ethics for Professional Accountants. The code sets out the main ethical pronouncement for members of professional accounting bodies in Australia, which are, CPA Australia, Chartered Accountants Australia and New Zealand (CAANZ) and Institute of Public Accountants (IPA). Section 100.5 of APES 110 sets out five fundamental principles of professional ethics that apply to all members.
Assume that you have been working as an auditor for the past three years. You are currently an audit assistant in RJ and Associates. You managed to complete a professional accounting program with one of the professional accounting bodies early this year. Upon completion of the program, you applied to be a full member of the accounting body. Last week, you received a letter from the accounting body advising that your application for a full membership had been successful. You told the good news to your colleagues in RJ and Associates. The firm organises a gathering to celebrate your success. In the speech during the gathering, the Managing Partner of RJ and Associates emphasises that “As a member of professional accounting body, it is important that we adhere to the code of professional ethics. For example, we must always upheld the professional competence and due care principles as well as professional behaviour principles”.