Core concepts
- 01Fundamental principles: Integrity, Objectivity, Professional Competence & Due Care, Confidentiality, Professional Behaviour.
- 02Threats: Self-Interest, Self-Review, Advocacy, Familiarity, Intimidation.
- 03Safeguards: created by profession/legislation, or within the firm/engagement.
- 04Conceptual framework approach — identify, evaluate, address.
- 05ICAI Code (2nd Edition) aligned with IESBA Code.
Flowchart
Threats & Safeguards | Self-Interest (financial) Self-Review (audit own work) Advocacy (promote client) Familiarity (close relation) Intimidation (pressure) | Safeguards: Profession / Firm / Engagement
Exam-critical pointers
- ⭐Confidentiality continues even after relationship ends.
- ⭐Independence — in fact and in appearance — for assurance engagements.
- ⭐Non-audit services restrictions: bookkeeping, valuation, internal audit, etc. (Sec 144 Companies Act).
- ⭐Sec 22 (Schedule I & II) — Other Misconduct / Professional Misconduct in CA Act 1949.
Make it click