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ES4 - Gift & Hospitality question

  • 21-07-2010 2:32pm
    #1
    Prezatch
    Registered Users, Registered Users 2 Posts: 952 ✭✭✭


    Is it against ethical standard 4 for and audit firm to provide hospitality/gifts to a client? Say sponsorship of a client's 5 a side soccer tournament. :D

    The standard seems to yap on about how the firm shouldn't accept gifts from a client (para 44-52) - but what about the other way around?


Comments

  • #2
    Clanket
    Closed Accounts Posts: 2,087 ✭✭✭Clanket


    I wouldn't think so. Especially if it's only sponsorship.

    The reason they waffle about receiving gifts is because they don't want accountants to be compromised. Can't see sponsorship of a client compromising anyone.


  • #3
    Prezatch
    Registered Users, Registered Users 2 Posts: 952 ✭✭✭Prezatch


    Well the reason I ask is that the institute say 'we should not even consider sponsoring the soccer team tournament as this would be a breach of ethical standard 4' in a solution to one of their baffling sample papers.

    (Sigh)


  • #4
    DolphinTales
    Closed Accounts Posts: 52 ✭✭DolphinTales


    JoeyD wrote: »
    Well the reason I ask is that the institute say 'we should not even consider sponsoring the soccer team tournament as this would be a breach of ethical standard 4' in a solution to one of their baffling sample papers.

    (Sigh)

    Jeez. Which one is that in? I suppose if it was as title sponsor and there was a significant(or is material a more appropriate word for accountants.....) amount of money then possibly not. I'm sure(well no evidence so therefore I'm not) that firms would sponsor clients in charity events and so on? Or maybe not. It's a cracking excuse not to part with a few bob though, eh sorry, its unethical....


  • #5
    Prezatch
    Registered Users, Registered Users 2 Posts: 952 ✭✭✭Prezatch


    It's in the sample paper for the elective, first simulation


  • #6
    cson
    Registered Users, Registered Users 2 Posts: 14,529 ✭✭✭✭cson


    Throw up the shield of compromising your impartiality and you're away with it.


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  • #7
    bammer
    Closed Accounts Posts: 28 ✭bammer


    Good point - assume the worst at all points.


    Where is the FAE text does it say that the Financial regulator requires audit partners to rotate after 5 years?


  • #8
    Prezatch
    Registered Users, Registered Users 2 Posts: 952 ✭✭✭Prezatch


    bammer wrote: »
    Good point - assume the worst at all points.


    Where is the FAE text does it say that the Financial regulator requires audit partners to rotate after 5 years?


    Well, sean murray admitted that they had received a load of complaints about that. He said in the final lecture which is on video on the site that regulations specific to certain industries (like financial institutions) wouldn't be examinable and that the sample paper shouldn't have asked about that


  • #9
    J.Ryan
    Registered Users, Registered Users 2 Posts: 474 ✭✭J.Ryan


    bammer wrote: »
    Good point - assume the worst at all points.


    Where is the FAE text does it say that the Financial regulator requires audit partners to rotate after 5 years?


    I don't know about the FAE text, but in Credit Union audits, rotation is very strongly recommended, or indeed resignation if a sole practioner after 5 years.


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