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

While auditing Kaveri Textiles Ltd, the auditor is assessing which ethical requirements apply to an audit of financial statements. Which of the following is one of the fundamental principles of professional ethics that SA 200 says the Code establishes for the auditor?

Professional competence and due care is a fundamental principle of professional ethics listed in SA 200, along with integrity, objectivity, confidentiality and professional behavior. Shareholder return maximisation, client advocacy and audit cost minimisation are not ethical principles for the auditor.

  1. AProfessional competence and due careCorrect
  2. BMaximisation of shareholder returns
  3. CClient advocacy
  4. DCost minimisation of the audit

Explanation

SA 200 lists integrity, objectivity, professional competence and due care, confidentiality and professional behavior as the fundamental principles. The other options are not among them; advocacy for the client in particular is inconsistent with objectivity.

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