Principles laid down by various court precedence in

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Principles laid down by various court precedence in the following cases; (i)Donoghue v Stevenson [1932] AC 562 (ii)Candler v Crane Christmas & Co [1951] All ER 426 (iii)Hedley Byrne & Co Ltd v Heller & Partners [1963] 2 All ER 575 Liability would arise with third party users of auditors report if the relationship can be established.
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Ethical Pronouncements The ethical pronouncements of the professional bodies are an attempt to codify principles that provide useful guidance to professional accountants in the conduct of their business. They include certain assumptions about moral principles and standards of conduct, which should be observed by professional accountants. It is worth noting that the effectiveness of the monitoring role of the auditor in reducing agency costs depends on auditor’s independence and ethical behaviour. In Malaysia, the ethical pronouncement of Accountants is governed by a Code of Ethics known as By-Laws (On Professional Conduct and Ethics).
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Principles under MIA By-Laws Integrity A professional accountant should be straightforward and honest in all professional and business relationships. Objectivity A professional accountant should not allow bias, conflict of interest or undue influence of others to override professional or business judgments Professional Competence and Due Care A professional accountant has a continuing duty to maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional service based on current developments in practice, legislation and techniques. A professional accountant should act diligently and in accordance with applicable technical and professional standards when providing professional services. Confidentiality A professional accountant should respect the confidentiality of information acquired as a result of professional and business relationships and should not disclose any such information to third parties without proper and specific authority unless there is a legal or professional right or duty to disclose . Professional Behaviour A professional accountant should comply with relevant laws and regulations and should avoid any action that discredits the profession
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Independence (a) Independence of Mind (or actual independence) The state of mind that permits the expression of a conclusion without being affected by influences that compromise professional judgment, allowing an individual to act with integrity, and exercise objectivity and professional scepticism.
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