International Finance and Accounting Handbook

(avery) #1

15 • 28


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.
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