International Finance and Accounting Handbook

15 • 25

Responsibility for

Country

Ethical Standards

Enforcement

Legal Liability

Detection of Fraud

North and South AmericaArgentina

Argentinean Code of Ethics

A disciplinary court elected

Failure by an auditor to per-

An auditor may be held crim-

issued by the FACPCE, which

by the direct vote of all regis-

form his or her duties, with

inally responsible, not neces-

aims to safeguard the public

tered professionals

regard to the examination of

sarily for the perpetration of

against careless or unscrupu-

financial statements, may

crimes, but rather for com-

lous professionals.

lead to monetary, criminal,

plicity or concealment, such

professional, or other conse-

as providing false or mislead-

quences applicable under the

ing examinations of financial

regulations of the control

statements.

authorities involved. Due tonegligence by the auditor, inthe event of deception orfraud, the auditor may be re-sponsible for paying damagesto the client or another party.

Canada

The chartered accountants for

In Ontario, for example, the

Liability under common law

GAAS requires the auditor to

each province have their own

provincial institute’s

to third parties

was defined

be skeptical and consider

codes, but the codes

are be-

Professional Conduct

for statutory audits by a

whether

material fraud and

ing harmonized. The certified

Committee is partially re-

Supreme court decision.

error are present in the finan-

general accountants have a

sponsible; the Disciplinary

There is some uncertainty

cial statements. There are no

national code. The certified

Committee presides over

due to recent U.K. and

other responsibilities, but

management accountants

more serious breaches of

Canadian court decisions.

management has its own

have provincial codes

ethics and the Practice

responsibilities.

Inspection Commissionensures that practice meetsthe standards set in codes.

(continued

)

Exhibit 15.3

Ethical Standards and Enforcement.