15 • 27
EuropeThe Netherlands
The Rules of Conduct for
Complaints received by the
Criminal and civil liability for
In principle, management
accountants (GBS) prohibit
Disciplinary Board and the
criminal offense (fines to im-
bears responsibility for the fi-
discrediting the profession,
Board of Appeal
prisonment), for negligence,
nancial statements; however,
the use of information for
acts discrediting the profes-
auditors can also be taken to
one’s own gain. They require
sion; the latter part is en-
court if they fail to detect er-
preserving records of evi-
forced by the Disciplines
rors, Auditors are not respon-
dence and keeping informa-
Board, not by the law; for
sible for irregularities (inten-
tion about a client confiden-
violating professional rules
tional distortions of financial
tial. Key issues addressed are
(resulting in written warning,
statements) if they have per-
impartiality, confidentiality,
written reprehension, suspen-
formed their audit with due
quality of work, and inde-
sion (maximum 6 months),
and professional care.
pendence.
and expulsion).
Material fraud that is de-tected, but not redressed,must be reported to theauthorities.
United Kingdom
Each RSB has an ethical
Each RSB must have rules for
Rule of “joint and several”
Required to plan audit so as
guide; all stress integrity,
enforcing compliance with
liability means that auditors
to obtain sufficient evidence
objectivity, independence,
SASs; penalties may include
may carry the full cost of
to give reasonable assurance
professional competence and
withdrawal of registration so
negligence even where this is
that the financial statements
due care, professional behav-
that person becomes ineligi-
partly the fault of directors;
are free from material mis-
ior, and confidentiality
ble to perform company
liability to third party exists at
statement, whether caused by
audits. Monitoring is carried
common law where loss is
fraud or other irregularity or
out, e.g. by the Joint
clearly attributable to re-
error.
Monitoring Unit of the
liance on a report prepared
ICAEW/ICAS
negligently and the partypreparing the report knew (orshould have known) it wouldbe relied upon.
Exhibit 15.3
(Continued
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