¶ … auditing comes with immense responsibility as it plays a vital role in maintaining a check and balance and establishes an organization's credibility and repute among its stakeholder. An auditor's report is a key document that most stakeholders use when taking decisions pertaining to an organization. For this it is important for auditors to show highest levels of compliance with ethics.
Auditors and Ethics
Audit and Ethics have a very deep relationship as one goes with another. Financial audit of clients needs to be ethical and it is an area of major concern as these companies hold the public stake. The base of ethical auditing is independence and beneath it lies the principles of honesty, professional diligence and due care, integrity and confidentiality. The basic part of ethical auditing which is independence focuses on the auditor's strict adherence to the maintenance of independence from having a financial interest in its clients. The world's major chartered accountant bodies have framed a standard code of conduct for auditor's compliance on an internationals...
Education on ethics must be wider compared to "moral development" in that it must tackle the broader consideration of a wide-ranging vocation, and constricted in that it must tackle problems particularly to the accounting vocation. (Research on Accounting Ethics) Definite duties of the accounting profession are put forth in the different code of ethics circulated by important establishments like the AICPA. The AICPA's foremost rule of professional conduct declares: In
.." And "The probability that my peers would undertake the same action is...." It is the difference in the responses given to these two questions, as captured on a seven point Likert scale, that is the measure of the social desirability response bias. (Tyson: 1992; Cohen et al.: 1995, 1996, 2001). Many studies have been done on the role and correlation between moral development and ethical decision making as it applies
Ethics and Corporate Responsibility The following will be an assessment of firm referred to as PharmaCARE. The assessment will concentrate on the idea of companies that have encountered negative outcomes as a result of company business activities. CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act) will be brought up in this assessment in addition to other environmental safeguarding proposals and human social theories in regards to environmental and work ethics. A new
Ethics Cable provider Adelphia was one of the major accounting scandals of the early 2000s that led to the creation of the Sarbanes-Oxley Act. A key provision of the Act was to create a stronger ethical climate in the auditing profession, a consequence of the apparent role that auditors played in some of the scandals. SOX mandated that auditors cannot audit the same companies for which they provide consulting services, as
Ethics Corporate Governance & Business Ethics It is quite interesting to note that, academic research in business ethics was a totally distinct discipline from research in corporate governance, and the application of the word 'ethics' was uncommon in available research on corporate governance. The chief responsibility of corporate governance was understood to be safeguarding the benefits of the shareholders. Because of the severance between ownership and management, and the incapability of the
The expectations gap occurs because many investors and policy makers expect auditors to detect all fraud, and if they do not, the auditors are presumed to be at fault." (Apostolou and Crumbley, 2008) The specific requirements of auditors are included in SAS 99 AU 31 and IAS 240 and in summary includes the following requirements: (1) Considering a company's internal controls and procedures, and how these are actually implemented, when
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