Question

What are the breach in the ethical principles if the necessary adjustments are not done?

Answer 1

Yes, If necessary adjustments to Financial Statements are not done there will be breach in certain ethical priciples.

The ethical principles include:

• integrity
• objectivity
• professional competence and due care
• confidentiality
• professional behaviour.  

If necessary adjustments to FS are not done there will be breach in the priciple of 'professional competence and due care'. Not adjusting the FS accordingly will lead to wrong data being published through the FS.

Necessary adjustments not being done means either members doesn't have the required professional knowledge or skill at the level required to ensure that a client or employer receives competent professional service based on current developments in practice and techniques. Or it could mean that while preparing the FS due care was not applied while preparing it or members didnt act diligently and in accordance with applicable technical and professional standards when providing the professional service.