Acting with Sufficient Expertise

Introduction

230.1 Chartered 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. 230.2 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

A chartered accountant shall not intentionally mislead an

employing organization as to the level of expertise or experience possessed. 230.3 A1 The principle of professional competence and due care requires that a chartered accountant only undertake significant tasks for which the accountant has, or can obtain, sufficient training or experience. 230.3 A2 A self-interest threat to compliance with the principle of professional competence and due care might be created if a chartered 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. 230.3 A3 Factors that are relevant in evaluating the level of such a threat include: • The extent to which the chartered accountant is working with others. • The relative seniority of the accountant in the business. • The level of supervision and review applied to the work. 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.