Utilizing Ethical Theories
There are common ethical dilemmas facing auditors today. The rules of conduct in Generally Accepted Auditing Standards (GAAS) and their application to the auditing process are paramount to auditors because it shows that an independent auditor plans, conducts, and reports the results of an audit in accordance with generally accepted auditing standards. Auditing standards provide a measure of audit quality and the objectives to be achieved in an audit. Auditing procedures differ from auditing standards. Auditing procedures are acts that the auditor performs during the course of an audit to comply with auditing standards.
How to Establish a Frame Work using Ethical Theories to Support an Audit.
An auditor could establish
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The key principles of the AICPA’s Rule of Conduct expresses the profession 's recognition of its responsibilities to the public, to clients, and to colleagues. They guide members in the performance of their professional responsibilities and express the basic tenets of ethical and professional conduct. The Principles call for an unswerving commitment to honorable behavior, even at the sacrifice of personal advantage.
Article I – Responsibilities. In carrying out their responsibilities as professionals, members should exercise sensitive professional and moral judgments in all their activities.
Article II - The Public Interest. Members should accept the obligation to act in a way that will serve the public interest, honor the public trust, and demonstrate commitment to professionalism.
Article III – Integrity. To maintain and broaden public confidence, members should perform all professional responsibilities with the highest sense of
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the IESBA Code is divided into three parts: Part A applies to all professional accountants; Part B, only to persons in public accounting; and Part C, to persons in business, in other words, everyone who is not in public practice. The AICPA does not apportion its principles and rules in this manner. Other differences are more substantive. As for similarities, both codes address areas such as independence, due care, confidentiality and the truthful reporting of information. The principles underlying each code are also similar except that the IESBA addresses confidentiality and marketing as principles (the latter under professional behavior), applicable to all professionals, whereas the AICPA Code includes these as rules applicable to members in public practice. The IESBA ethics requirements for professional accountants in business, such as corporate accountants, are much like those found in the AICPA Code although certain IESBA guidance is more comprehensive (for example, inducements, acting with sufficient
With every business activity come opportunities for fraudulent behavior which leads to a greater demand for auditors with unscathed ethics. Nowadays, auditors are faced with a multitude of ethical issues, and it is even more problematic when the auditors fail to adhere to the standards of professional conducts as prescribed by the American Institute of Certified Public Accountants (AICPA). The objective of this paper is to analyze the auditors’ compliance with the code of professional conduct in the way it relates to the effectiveness of their audits.
...practices and ethical conduct toward students, professional colleagues, and community members. I could tell they maintained the dignity of their profession, demonstrated integrity, and exemplified honesty.
Identify a core principle from the NMC Code of Conduct (2008) and demonstrate how this may affect professional practice
In the essay “The Rules about the Rules,” Carter sets forth his views on integrity. Throughout this essay, he explains to readers the three rules of integrity. The first step is the difficult process of discerning one’s deepest understanding of right and wrong. The second step is knowing what one believes. This means one knows and understands what is right from wrong and puts what is right into effect. Last but not least, the third and most important step is the person must be willing to say that he or she is acting upon what he or she has decided what is right. Carter believes integrity is a moral virtue that should be consistently acted upon throughout readers’ lives.
Accountants following the professional code in the society are critical. The Code of Professional Conduct has been closely related and referred to as accounting ethics. Accounting ethics are difficult to comprehend because accountants and auditors must take into consideration the public’s interest and ensure they are performing up to standards. Listed below are some focuses in the Code of Professional Conduct that accountants follow.
"Article III." LII / Legal Information Institute. Cornell University Law School, n.d. Web. 31 Mar. 2014.
Since you examined the number of moral issues you will face in this profession, look through the code of ethics that you chose for this assignment and explain
(2016). Lesson 3: Ethical Perspectives. In Professionalism & Ethics in CJ: Spring 2016. Retrieved from
Lastly, integrity comes down to taking the correct action when no one is around to monitor the behavior. Personal views can cloud an individual’s decision making process by looking to obtain dishonest gains through deceitful actions.
Romal, Jane B., and Hibschweiler, Arlene M. "Improving Professionals Ethics: Steps for Implementing Change." The CPA Journal (2004). Retrieved on 16 September 2006 .
It is highly essential for accountants and business professionals to maintain a standard of ethical conduct in the workplace as the nature of their work places them in position of trust. (Senarante, 2011). Accountants have the responsibility to ensure that their duties are performed in accordance with the five fundamental principles set out in the Code of Professional Ethics such as integrity, objectivity, professional competence and due care, confidentially and professional behaviour (Cunningham et al. 2014). Accountants are expected to be reliable and trustworthy. Thus they are required to act ethically in relation to their clients, employers and the general public in order to provide quality services in the best interest of the society (Eginiwin & Dike, 2014). The International Federation of Accountants (IFAC) have established a code of ethics for accountants, allowing each specific country to add their own national ethical standards to the code to reflect cultural differences. The code provides emphasis on the five fundamental principles as well as resolution of ethical conflicts. In Australia, professional accounting bodies such as CPA Australia, Institute of Chartered Accountants in Australia (ICCA) and the Institute of Public Accountants (IPA) adopt the Australian Professional and Ethical
obligation is to protect the innocent as well as to convict the guilty, to guard
The aim of this paper is to provide the framework of the current professional accounting code of ethics. What are the ethics and how we define them? In this report we try to determine the main ethical principles that will establish the right and
As per ISA (NZ) 200-A17, this ethical requirement includes the auditors integrity, objectivity, professional competence and due care, confidentiality, & professional behaviour. Integrity is an ethical attitude which includes the auditor’s honesty, accuracy, and fair practice. Objectivity is a mental attitude while carrying out the audit wherein the auditor is fair and just with all his/her work. Professional competence is the knowledge and skill of the auditor, gained through education, training and experience, while due care is a degree of care of an auditor on certain situations wherein an he/she must act diligently. Confidentiality is the commitment of the auditor not to disclose any information regarding his/her client, unless required by law. Professional behaviour means the auditor must act in accordance to the law and set of standard as a manifestation of respect to the
The evolution of auditing is a complicated history that has always been changing through historical events. Auditing always changed to meet the needs of the business environment of that day. Auditing has been around since the beginning of human civilization, focusing mainly, at first, on finding efraud. As the United States grew, the business world grew, and auditing began to play more important roles. In the late 1800’s and early 1900’s, people began to invest money into large corporations. The Stock Market crash of 1929 and various scandals made auditors realize that their roles in society were very important. Scandals and stock market crashes made auditors aware of deficiencies in auditing, and the auditing community was always quick to fix those deficiencies. The auditors’ job became more difficult as the accounting principles changed, and became easier with the use of internal controls. These controls introduced the need for testing; not an in-depth detailed audit. Auditing jobs would have to change to meet the changing business world. The invention of computers impacted the auditors’ world by making their job at times easier and at times making their job more difficult. Finally, the auditors’ job of certifying and testing companies’ financial statements is the backbone of the business world.