1. Ethics

2. Framework or
Rulebook?

3. Framework or
Rulebook?
• Certainty

4. Framework or
Rulebook?
• Certainty
• Clarity over whats not allowed

5. Framework or
Rulebook?
• Certainty
• Clarity over whats not allowed
• Don’t cover all situations

6. Framework or
Rulebook?
• Certainty
• Clarity over whats not allowed
• Don’t cover all situations
• Can be interpreted too narrowly

7. Framework or
Rulebook?
• Certainty
• Clarity over whats not allowed
• Don’t cover all situations
• Can be interpreted too narrowly
• Not good across national
boundaries

8. Don’t in the exam -
coppi
it’s not ethical!

9. Don’t
coppi
in the exam -
it’s not ethical!

10. Don’t in the exam -
it’s not ethical!
coppi

11. Fundamental
Principles

12. C
O
P
P
I

13. C onfidentiality
O
P
P
I

14. C onfidentiality
O bjectivity
P
P
I

15. C onfidentiality
O bjectivity
P rofessional skill & care
P
I

16. C onfidentiality
O bjectivity
P rofessional skill & care
P rofessional behaviour
I

17. C onfidentiality
O bjectivity
P rofessional skill & care
P rofessional behaviour
I ndependence

18. Self Interest

19. Self Interest
Member (or
close family)
holds shares
in the
company

20. fegu ard
Sa

21. Dispose of the Shares
fegu ard
Sa

22. Dispose of the Shares
Remove member from
engagement team
fegu ard
Sa

23. Self Interest

24. Member (or
close family) Self Interest
holds loans or
deposits with
the company

25. fegu ard
Sa

26. Not even a threat if..
fegu ard
Sa

27. Not even a threat if..
On commercial terms
fegu ard
Sa

28. Not even a threat if..
On commercial terms
In normal course of business
fegu ard
Sa

29. Self Interest

30. Firm holds Self Interest
loans or
deposits with
the company

31. fegu ard
Sa

32. Immaterial to firm & client
fegu ard
Sa

33. Immaterial to firm & client
Otherwise an external review of
work performed needed
fegu ard
Sa

34. fegu ard
Sa

35. If below not true
fegu ard
Sa

36. If below not true
On commercial terms
fegu ard
Sa

37. If below not true
On commercial terms
In normal course of business
fegu ard
Sa

38. If below not true
On commercial terms
In normal course of business
X
Sa fegu ard

39. Self Interest

40. Firm / member
has business Self Interest
relations (eg
JV) with the
company

41. fegu ard
Sa

42. Nothing can reduce it
fegu ard
Sa

43. Nothing can reduce it
to acceptable level
fegu ard
Sa

44. Nothing can reduce it
to acceptable level
X
Sa fegu ard

45. Familiarity

46. Audit member Familiarity
becomes
employee of
client

47. fegu ard
Sa

48. Revise engagement team
fegu ard
Sa

49. Revise engagement team
Independent partner review
fegu ard
Sa

50. Self Interest

51. Audit member
thinks he MAY Self Interest
become
employee of
client

52. fegu ard
Sa

53. Notify firm
fegu ard
Sa

54. Notify firm
Remove from engagement team
fegu ard
Sa

55. Notify firm
Remove from engagement team
Independent review of his
judgements
fegu ard
Sa

56. Notify firm
Remove from engagement team
Independent review of his
judgements
Partner no management job for
2 years after audit
fegu ard
Sa

57. Self Review

58. Client Self Review
becomes
employee of
the firm

59. fegu ard
Sa

60. Not on engagement for 2 years
fegu ard
Sa

61. Self Review

62. Same senior Self Review
engagement
member long
term

63. fegu ard
Sa

64. Rotation Partner 5yrs - 5yrs
break
fegu ard
Sa

65. Rotation Partner 5yrs - 5yrs
break
Rotation Senior 7yrs - 2yrs
break
fegu ard
Sa

66. Rotation Partner 5yrs - 5yrs
break
Rotation Senior 7yrs - 2yrs
break
Independent reviews
fegu ard
Sa

67. Self Interest
5% firm
income(10%)
10% firm
income(15%)

68. Advocacy

69. Advocacy
Contingent
fees

70. fegu ard
Sa

71. Disclose to client audit
committee
fegu ard
Sa

72. Disclose to client audit
committee
Independent review
fegu ard
Sa

73. Disclose to client audit
committee
Independent review
External review of fee
fegu ard
Sa

74. Self Review

75. Self Review
Non-audit
work

76. fegu ard
Sa

77. Independent teams
fegu ard
Sa

78. Independent teams
Independent partner review
fegu ard
Sa

79. Independent teams
Independent partner review
No Managerial decisions
fegu ard
Sa

80. Independent teams
Independent partner review
No Managerial decisions
No subjective valuations
fegu ard
Sa

81. Independent teams
Independent partner review
No Managerial decisions
No subjective valuations
Tax work ok
fegu ard
Sa

82. Independent teams
Independent partner review
No Managerial decisions
No subjective valuations
Tax work ok
No litigation work
fegu ard
Sa

83. Intimidation

84. Intimidation
Threatened
litigation

85. fegu ard
Sa

86. Decline an Audit
fegu ard
Sa

87. Decline an Audit
Non-audit
fegu ard
Sa

88. Decline an Audit
Non-audit
Discuss with audit comittee
fegu ard
Sa

89. Decline an Audit
Non-audit
Discuss with audit comittee
Remove individual
fegu ard
Sa

90. Decline an Audit
Non-audit
Discuss with audit comittee
Remove individual
External review
fegu ard
Sa

91. Confidentiality

92. Confidentiality
Don’t disclose to 3rd party unless...

93. Confidentiality
Don’t disclose to 3rd party unless...
Client Permission

94. Confidentiality
Don’t disclose to 3rd party unless...
Client Permission
terrorism, money laundering

95. Confidentiality
Don’t disclose to 3rd party unless...
Client Permission
terrorism, money laundering
protects member

96. Confidentiality
Don’t disclose to 3rd party unless...
Client Permission
terrorism, money laundering
protects member
legal duty

97. Confidentiality
Don’t disclose to 3rd party unless...
Client Permission
terrorism, money laundering
protects member
legal duty
in public interest

98. Conflicts of Interest

99. Conflicts of Interest
Acting for competing clients

100. Conflicts of Interest
Acting for competing clients
Chinese walls

101. Conflicts of Interest
Acting for competing clients
Chinese walls
independent review

102. Conflicts of Interest
Acting for competing clients
Chinese walls
independent review
inform clients