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
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Exhibit 15.3
Ethical Standards and Enforcement.