Auditing and EthicsQuestion 5697 of 212
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4. Due to tight deadlines, CA B has insufficient time to properly perform or complete the relevant duties and he has to sign off clean audit report. Which fundamental principle governing professional ethics is disregarded by him ?

Options

AProfessional competence and due care
BProfessional behaviour
CIntegrity
DObjectivity
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Correct Answer

Option AProfessional competence and due care

All Options:

  • AProfessional competence and due care
  • BProfessional behaviour
  • CIntegrity
  • DObjectivity

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Detailed Solution & Explanation

To determine which fundamental principle governing professional ethics is disregarded by CA B, we need to analyze the situation and the principles listed in the options.
CA B is facing tight deadlines and, as a result, does not have sufficient time to properly perform or complete the relevant audit duties. Despite this, he signs off on a clean audit report.
Let's examine the options given:
Option A: Professional competence and due care - This principle requires that a professional accountant should act in accordance with the technical and professional standards and have the necessary competence to perform the task. Due care requires the professional to act diligently and in accordance with the standards of the profession. By not having sufficient time to properly perform or complete the relevant audit duties and still signing off on a clean audit report, CA B is not acting with due care and may also be lacking in professional competence if he is unable to manage his time effectively to complete the tasks to the required standard.
Option B: Professional behaviour - This principle is about complying with relevant laws and regulations and avoiding any action that brings discredit to the profession. While signing off on an incomplete audit could potentially bring discredit, the primary issue here seems to be more directly related to the quality of the work and the care with which it is performed.
Option C: Integrity - Integrity is about being straightforward and honest in all professional and business relationships. While integrity is crucial, the scenario provided does not directly indicate a lack of honesty or straightforwardness but rather a potential lack of diligence in performing the audit tasks.
Option D: Objectivity - Objectivity requires that a professional accountant should be free from conflicts of interest and not be influenced by factors that might compromise professional judgment. The scenario does not directly imply that CA B's objectivity is compromised due to external influences or conflicts of interest.
Given the analysis, the most relevant principle that CA B is disregarding is related to his competence and the care with which he performs his duties, as he is not able to complete the audit tasks to the required standard due to time constraints and still issues a clean audit report.
Hence, **Option A** is the correct answer.

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