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Responsibility for
Country
Ethical Standards
Enforcement
Legal Liability
Detection of Fraud
Africa and Middle EastSaudi Arabia
Ethical standards (which en-
Ministry of Commerce
The auditor is liable for negli-
Responsibility exists only if
compass U.S. GAAS require-
gence. However, civil litiga-
the fraud is material to the
ments) as set by SOCPA
tion against auditors is very
financial statements taken as
rare. The Ministry of
a whole.
Commerce will penalize au-ditors who break regulations.
Kenya
Ethical standards are given in
Section 28 of the
The auditor is legally and
The auditor is not responsible
Statements and in Section 28
Accountants Act (Cap 531 of
professionally liable only
for failure to detect fraud or
of the Accountants Act
the Laws of Kenya)
when he or she fails to apply
illegal acts. However, the
(Cap 531 of the Laws of
or incorrectly applies the
auditor should plan his or her
Kenya). A member of ICPA(K)
required auditing standards.
audit with reasonable expec-
must maintain integrity, pro-
tation of detecting material
fessional independence and
misstatements resulting from
confidentiality, and show
irregularities or fraud.
competence in all profes-sional work.
Exhibit 15.3
(Continued
)