International Finance and Accounting Handbook

15 • 29

Germany

A code of ethics covers

A self-regulated body can

Unlimited liability to clients

Expected to conduct the

legally required audits.

warn, reprimand, fine, or ex-

and third parties for false

examination in an impartial

Detailed guidelines issued by

pel an auditor who is guilty

statements or other inten-

and conscientious manner.

the Institute of CPAs, and by

of not performing duties in

tional violations. Liability is

Liable if failure to discover

the Chamber of Auditors in-

accordance with professional

limited in case of negligence.

fraud results from negligence.

clude independence, profes-

laws and standards.

Breach of confidentiality is a

sional care, partial responsi-

criminal offense.

bility, discretion, impartiality,professional conduct, andelimination of incompatibleduties.

Sweden

The FAR has developed rules

Sanctions may be imposed

The auditor can be held li-

The auditor is responsible for

of professional ethics similar

by the Supervisory Board of

able for client damages that

fraud only if the failure to

to those followed by U.S.

Public Accountants.

were intentional or caused by

detect it was intentional or

CPAs.

carelessness.

caused by carelessness.

Asia and PacificAustralia

Code of Professional

Disciplinary committees in

The ethical standards per se

The auditor has no responsi-

Conduct (CPC) of the ICAA

the profession

do not give rise to legal lia-

bility for reporting on control

and ASCPA

bility. However, under the

structures,

other than report-

Corporation Law

, criminal

ing significant problems in

sanctions may be invoked

the management letter to the

against dishonest auditors,

Board or Audit Committee on

and deregistration may be a

a timely basis.

Specific re-

remedy against inappropriate

quirements to see and detect

conduct. Civil remedies for

fraud do not at present exist.

auditors; negligence are alsoavailable.

Exhibit 15.3

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