Financial Reporting and Ethics - The Institute of Chartered ...

FINANCIAL REPORTING AND ETHICSAs appropriate, the rules impose specified prohibitionswhere the threat to the auditor’s objectivity is significant,or generally considered to be so, that no other appropriatesafeguards would be effective;(ii)(iii)(iv)The ethical support of The Institute of Chartered Accountantsof Nigeria;The reinforcement accorded the safeguards stated abovethrough a policing mechanism. It reacts to complaints,made by whether members of the public or of theprofession. The system investigates the background to thecomplaints. Where necessary, it commences disciplinaryproceedings against any erring member. Consolidatedwith monitoring, the policing mechanism ensures that apracticing firm’s past conduct and current procedures arelikely to attract close independent professional supervisionif the conduct of practicing members occasions challengesover their implementation of the guidelines discussed;andThe Professional Practice Monitoring Committee isempowered to visit audit firms and examine compliancewith the laid down audit guidelines and standards.The Code (IFAC 2009, para 100.14) recommends the followingsafeguards:(i)(ii)(iii)(iv)(v)(vi)“Educational, training and experience requirements forentry into the profession;Continuing professional development requirements;Corporate governance regulations;Professional standards;Professional or regulatory monitoring and disciplinaryprocedures; andExternal review by a legally empowered third party ofthe reports, returns, communications or informationproduced by a professional accountant.”10.6 WHISTLE – BLOWING CONCEPTS, CASES AND SOLUTIONSIntroduction and Nature of Whistle – BlowingAccording to Deni Elliott, “whistle – blowing is an action taken by an agent tobring purported illegal or unethical behaviours to the attention of others. Italways involves going outside expected channels or the chain of command.”An agent may be non- human such as a guard dog backing at the physical or200