Question

1. Mohammad Hasan is a partner in a Big 4 accounting firm, he hired accounting students from your University to conduct the audit of Bank of Palestine. When the audit was done he received the audit report and signed it. The report was issued one day later
. 2. Your mother in law is a majority shareholder in Jawwal, you are hired by the company to conduct an audit you conducted the audit and issued your report.
3. Ahmad CPA and Ali a CMA formed a Partnership to provide Audit services. The company was named the nice Audit CPA firm.
4. Samir a CPA advertised has practice on web siting several prominent clients of his firm, he also included links to the client’s websites and quotes from his happy clients.
5. Hania a CPA was talking with her husband about her work she mentioned some client’s information to prove her point.
6. Hanin a CPA in a local accounting Firm when one of her clients did not pay his bills she informed them that she will not give them their records and supporting documents until they pay.
7. Adel a CPA to supplements his income by worked as a bartender at the Movenpick hotel.
8. Majed while auditing the Palestinian Leasing Company discovered a violation IFRS 16. The company indicated to him that this violation is not Material and that following IFRS 16 will make the financial statements misleading accordingly he issued a standard report.
9. Majeda audited a company for three consecutive years without receiving any fees.
  Required For each case indicate the violation of the code of ethics. Explain your answer by also indicating the standard violated. In case there is no violation indicate so with your reason for your answer

Answer 1

1. Violation of Code of Ethics in given above cases: Case 1: Mohammad Hasan is partner if BIG 4 indicates that he is qualified Auditor. There is no violation of any rule. IT is assumed that the report is prepared by Mohammad Hasan only.

2.spouse parents are covered in related party transcation as per SA 550.SO there is violation appointing as auditor

3.violation of the code of conduct and not eligible to create a firm

4.as per the provisions of the act..any professional can not advertise his works.achivements ..etc

its vioalation of the code of conduct

5.sharing of work between 2 professionals does not a violation of code of conduct.

6.here,there is no violation of code of conduct...hania have the right to hold the books of accounts until The last payment done

7.there is no violation of code of conduct.its allowed by the act

8.issuing an audit report by majed is void. and violation of code of conduct.he was an independent person not controlled by the organisation.so he can give the report by indivually and not influenced by organisation

9.there is a remuneration for each CPA.but in this case he was not taken any amount in past 3 yrs..so identify the reason he was a related party to the entity or ,,any one of the related party having substantial interest in the organization..if yes he is violating the code of conduct,,otherwise NO