International Finance and Accounting Handbook

15 • 26

Responsibility for

Country

Ethical Standards

Enforcement

Legal Liability

Detection of Fraud

North and South America (Continued)Mexico

The Mexican Institute of

The Mexican Institute of

The auditor may be sued if

A statutory auditor is respon-

Public Accountants has is-

Public Accountants

the audit is not conducted

sible for the vigilance of the

sued a code of professional

according to the standards

company and the admini-

ethics to guide its members

and procedures issued by the

strations

in moral conduct and to de-

Mexican Institute of Public

clare its intentions to serve

Accountants and a third party

society with trust, diligence,

is affected.

and self-respect.

United States

The bylaws of the AICPA

Council of the AICPA is

The auditor may be held

The auditor should assess the

require that members adhere

authorized to designate bod-

legally and professionally

risk that errors and irregulari-

to the Rules of Code of

ies to promulgate technical

liable when he or she fails to

ties may cause the financial

Professional Conduct. These

standards under the Rules,

apply due professional care

statements to contain a mate-

Principles of the Code of

and the bylaws require ad-

in the application of the re-

rial misstatement. Based on

Professional Conduct of the

herence to those Rules and

quired auditing standards.

that assessment, the auditor

AICPA express the profes-

Standards. Compliance with

should design the audit to

sion’s recognition of its

the Code of Professional

provide reasonable assurance

responsibilities to the public,

Conduct depends primarily

of detecting errors and irregu-

to clients, and to colleagues,

on members’ understanding

larities due to fraud that are

They guide members in the

and voluntary actions, sec-

material to the financial

performance of their profes-

ondarily on reinforcement by

statements.

sional responsibilities and

peers and on public opinion,

express the basic tenets of

and, ultimately, on discipli-

ethical and professional

nary proceedings, when nec-

conduct.

essary, against members whofail to comply with the rules.