International Finance and Accounting Handbook

(avery) #1
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

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