The Canadian Institute of Chartered Accountants (CICA) Has Taken a Principles-Based

question 6

Multiple Choice

The Canadian Institute of Chartered Accountants (CICA) has taken a principles-based approach to auditor independence, whereas the Federation des Experts Comptables Europeens (FEE) has taken a conceptual approach. What is the difference?

• A) The principles-based approach has been effective, but the conceptual approach has not.
• B) The principles-based approach offers more flexibility in compliance than the conceptual approach does.
• C) The principles-based approach gives specific rules and prohibitions that must be followed, but the conceptual approach asks auditors to focus on the aim of independence rather than rules.
• D) The conceptual approach is only theoretical and hasn't yet been applied, whereas the principles-based approach is currently in practice.

---

Definitions:

Job Withdrawal

The process by which an employee disengages from their work role, which may manifest as absenteeism, reduced effort, or eventually leaving the job.

Emotional Withdrawal

A defense mechanism where an individual distances themselves emotionally from others or certain situations.

Physical Job Withdrawal

Actions taken by employees to distance themselves from their work tasks, often as a result of dissatisfaction or disengagement, such as taking extended breaks or excessive absenteeism.

Job Involvement

The degree to which people identify themselves with their jobs.