ETHICS ROLC & APA
rules of improper conduct & auditing profession act
1. INTRODUCTION
DEFINITIONS
A. An Audit
• A systematic process of gathering and evaluating evidence and information objectively to make
evaluation.
• It uses assertions about economic actions and situations (made by management of the entity),
and
• Determines the correlation (of assertions) with predefined criteria, and
• The results are communicated in writing to users.
B. Ethics
• It is defined as a set of principles of right conduct and a theory or system of moral values.
• Morality defines personal values, whereas ethics refers to a social system in which those morals
are practically applied.
• Ethics can be rule-based which uses strict guidelines and compliance, or principle-based that
uses key objectives to set out ethical values.
Risks a profession would be exposed to if there was no code of ethics:
• No communication of expectations and members would make decisions without guidelines which
would cause a variation in standards.
• It is difficult to hold someone accountable.
• The public's trust and profession's reputation can be damaged.
, C. Roles a CA(SA) Can Play
D. Difference between SAICA & IRBA
E. Registered Auditor vs. Non-registered Auditor
REGISTERED
• Individual s37
• Firm (partnership or company) s38
• Deregistered (firm or individual) s39
REGISTERED AUDITOR NOT A REGISTERED AUDITOR
Subject to: Applicable sections:
• RoIC
• APA APA s41 = prohibition if not registered and no
Requirements for an RA: profit sharing
• S41: Appointment, letter heads, etc.
• S44: When RA may express opinion
• S46: Liability
rules of improper conduct & auditing profession act
1. INTRODUCTION
DEFINITIONS
A. An Audit
• A systematic process of gathering and evaluating evidence and information objectively to make
evaluation.
• It uses assertions about economic actions and situations (made by management of the entity),
and
• Determines the correlation (of assertions) with predefined criteria, and
• The results are communicated in writing to users.
B. Ethics
• It is defined as a set of principles of right conduct and a theory or system of moral values.
• Morality defines personal values, whereas ethics refers to a social system in which those morals
are practically applied.
• Ethics can be rule-based which uses strict guidelines and compliance, or principle-based that
uses key objectives to set out ethical values.
Risks a profession would be exposed to if there was no code of ethics:
• No communication of expectations and members would make decisions without guidelines which
would cause a variation in standards.
• It is difficult to hold someone accountable.
• The public's trust and profession's reputation can be damaged.
, C. Roles a CA(SA) Can Play
D. Difference between SAICA & IRBA
E. Registered Auditor vs. Non-registered Auditor
REGISTERED
• Individual s37
• Firm (partnership or company) s38
• Deregistered (firm or individual) s39
REGISTERED AUDITOR NOT A REGISTERED AUDITOR
Subject to: Applicable sections:
• RoIC
• APA APA s41 = prohibition if not registered and no
Requirements for an RA: profit sharing
• S41: Appointment, letter heads, etc.
• S44: When RA may express opinion
• S46: Liability
