Professional Level – Options Module, Paper P7 (UK) Advanced Audit and Assurance (United Kingdom) June 2009 Answers 1
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| 4 (a) ‘Professional competence and due care’ is one of the fundamental ethical principles explained as part of the Code’s conceptual framework. It can be broken down into two parts. Professional competence This is the concept that a professional accountant must firstly achieve, and subsequently maintain, professional knowledge and skill at the level required to ensure that clients and employers receive competent professional service. Attaining professional knowledge is achieved through a mixture of formal professional qualifications, informal ‘on the job’ training, and gaining experience of a range of professional work. Maintaining professional knowledge is achieved through continuing professional development. Professional accountants must ensure that they are aware of changes in technical fields such as tax, auditing and financial reporting regulations where relevant to the services they offer to clients. Professional accountants should also be aware of general business developments, such as the use of information technology and e-commerce. Due care This is about acting diligently in accordance with applicable technical and professional standards when providing professional services. This means applying knowledge to a specific situation with careful consideration, minimising the chance of mistakes being made. It may also include wider issues such as making sure that there is enough time to complete work with due care, and ensuring that staff fully understand the objectives of the work they are being asked to perform. Compliance with the principle Attaining and maintaining professional knowledge: Firms can offer training on specific technical matters, such as changes to tax rules or new auditing guidelines, which could be provided by senior members of the firm or by external consultants. Due care Adherence to quality control guidelines will help ensure that due care has been exercised. Particularly the supervision and review of work by more senior members of the firm should act as a preventative and detective control to pick up any errors made in the work. In addition, formal and informal staff appraisals will enable members of staff to raise issues with more senior members of staff, e.g. if they felt under too much time pressure to properly perform their work. Reviews carried out as part of the normal audit cycle (i.e. hot and cold reviews) can also help to identify where the firm may need to organise more training for staff. Download 431.6 Kb. Share with your friends:
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