Introduction (230.1 to 230.2)
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Professional accountants are required to comply with the fundamental principles and apply the conceptual framework set out in Section 120 to identify, evaluate and address threats.

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Acting without sufficient expertise creates a self-interest threat to compliance with the principle of professional competence and due care. This section sets out specific requirements and application material relevant to applying the conceptual framework in such circumstances.

Requirements and Application Material

General (R230.3 to R230.4)
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A professional accountant shall not intentionally mislead an employing organization as to the level of expertise or experience possessed.

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230.3 A1

The principle of professional competence and due care requires that a professional accountant only undertake significant tasks for which the accountant has, or can obtain, sufficient training or experience.

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230.3 A2

A self-interest threat to compliance with the principle of professional competence and due care might be created if a professional accountant has:

  • Insufficient time for performing or completing the relevant duties.

  • Incomplete, restricted or otherwise inadequate information for performing the duties.

  • Insufficient experience, training and/or education.

  • Inadequate resources for the performance of the duties.

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230.3 A3

Factors that are relevant in evaluating the level of such a threat include:

  • The extent to which the professional accountant is working with others.

  • The relative seniority of the accountant in the business.

  • The level of supervision and review applied to the work.

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230.3 A4

Examples of actions that might be safeguards to address such a self-interest threat include:

  • Obtaining assistance or training from someone with the necessary expertise.

  • Ensuring that there is adequate time available for performing the relevant duties.

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If a threat to compliance with the principle of professional competence and due care cannot be addressed, a professional accountant shall determine whether to decline to perform the duties in question. If the accountant determines that declining is appropriate, the accountant shall communicate the reasons.

Other Considerations (230.5 A1)
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230.5 A1

The requirements and application material in Section 270 apply when a professional accountant is pressured to act in a manner that might lead to a breach of the principle of professional competence and due care.

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June 2021

You are now leaving the extant Code to view another version that contains passages that have either been superseded or that have been issued but are not yet effective.

This version of the eCode incorporates changes to Part 4B.

Part 4B relating to independence for assurance practitioners with respect to underlying subject matter covering periods is effective for periods beginning on or after June 15, 2021; otherwise, it is effective as of June 15, 2021. Early adoption is permitted.

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