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CS Professional · Compliance Management, Audit and Due Diligence · Audit Principles and Techniques

While auditing Bharat Textiles Ltd, the engagement team lists the fundamental ethical principles from the Code of Ethics that apply to an audit of financial statements. Which of the following is NOT one of those fundamental principles as stated in SA 200?

Profitability of the client is not a fundamental ethical principle. SA 200 names integrity, objectivity, professional competence and due care, confidentiality, and professional behavior as the fundamental principles relevant to an auditor conducting an audit of financial statements.

  1. AObjectivity
  2. BConfidentiality
  3. CProfessional competence and due care
  4. DProfitability of the clientCorrect

Explanation

SA 200 lists five fundamental principles: integrity, objectivity, professional competence and due care, confidentiality, and professional behavior. Client profitability is not an ethical principle. The other three options are all in the list.

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