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Responsibility for
Country
Ethical Standards
Enforcement
Legal Liability
Detection of Fraud
Europe (Continued)Italy
The rules of association of the
Ethical standards are en-
The auditor is legally and
No specific requirements.
Ordine Nazionale del Dottori
forced by the professional
professionally liable only
According to the ISA, the
Commercialisti and of the
associations.
when he or she fails to apply,
auditor is not resopnsible for
Collegio Nazionale dei
or incorrectly applies, the
failure to detect fraud or ille-
Ragionieri include specific
required auditing standards.
gal acts if the auditing proce-
ethics requirements relating
dures appropriate in the
to independence and compe-
circumstances have been
tence. Auditing Standard No. 1
competently performed.
of the Consiglio Nazionaledel Dottori Commercialistispecifies the following re-requirements for the auditor:Competence as a conditionfor acceptance of the audi-tor’s work, exercise of dueprofessional care in the con-duct of the audit, integrity,and independence.
France
Set both by law and the Code
Penalties are set by law, and
Violation of laws that regu-
No responsibility, but liable
of Professional Ethics
in several cases by the
late the profession are sub-
to client and third parties for
adopted by the Compagnie
Compagnie Nationale des
ject to Penal Code.
fraud and negligence; must
Nationale, including rules on
Commissaires aux Comptes,
Requirements are stated by
report known illegal acts by
independence, incompatible
which may take disciplinary
law. Auditors are required to
client to government authori-
functions, advertising, use of
action.
carry liability insurance.
ties and/or public prosecutor.
title or firm name, relation-ships with colleagues, con-nection between predecessorand successor.