ipl-logo

Ethical Issues In Auditing And Accounting

747 Words3 Pages

1.5. Auditing and the Ethical conflict It is not a trouble-free issue to determine what is ethical or legal in auditing and accounting. A great degree of agreement is easily obtained as to the appropriate ethical values and their supplementary qualities, such as truthfulness, honesty and law-abidingness. But talking how these values should be translated into actions in examining the financial reports of businesses turns out to be unclear when the issue gets downward to the details. Determining what is and is not ethical in auditing turns out not to be simply a matter of detecting fraud, corruption and other criminal conduct . An ethical conflict occur when the responsibilities toward one group are contradictory with duties to another; this …show more content…

In this sense, it will be useful to identify the particular responsibilities of an auditor. 1.6. Code of Ethics The code of ethical and professional conduct in the field of financial audit and accounting attaches importance to the purpose of the two professions that is represented by job performance at the top standards of professionalism, to achieve the highest level of performance and normally to attain the public interest. As revealed, auditing should implement and maintain the Code of Ethics. The Code of Ethics utters principles and potentials governing behavior of persons and businesses in the conduct of auditing. It illustrates the necessities for performance, and behavioral prospects rather than detailed actions. 1.6.1. The Code of Ethics for Professional Accountants by IESBA The International Ethics Standards Board for Accountants (IESBA) is an independent standard-setting body that serves the public interest by setting robust, internationally appropriate ethics standards, including auditor independence requirements, for professional accountants worldwide. These are assembled in the Code of Ethics for Professional …show more content…

Therefore, a professional accountant's responsibility is not exclusively to satisfy the needs of an individual client or employer. A professional accountant and auditor shall act in accordance with the following fundamental principles: a. Integrity - The auditor or the professional accountant must be straight and honest in the pursuit of professional relationships. Integrity also means decent and truthful dealing. b. Objectivity – The auditor must not allow prejudices, conflicts of interest or external influences to dominate professional or business judgments. c. Professional Competence and Due Care – The auditor should perform competent professional services by upholding specialized knowledge and expertise at the level required to ensure that the client receives the services according to up to date developments, legislation and methods. He also should act cautiously and in agreement with appropriate practical and professional

Show More
Related
802 Words | 4 Pages

1. Identify the specific circumstances under which auditors are allowed to provide confidential client information to third parties. According to ET Section 391.004, an auditor would be violating Rule 301.01 if the information is considered to be confidential client information, unless the auditor has the clients' specific consent, preferably in writing, for the disclosure or use of such information. “A member in public practice shall not disclose any confidential client information without the specific consent of the client” (AICPA § 301.01).

Read More
119 Words | 1 Pages

However, standards in medical ethics can help working professionals manage and create an

Read More
785 Words | 4 Pages

All professions follow a code of ethics. A code of ethics provides legal and ethical guidance to members of a profession. The field of ethics describes how we must treat each other, how we must act, what we must do and why. As professionals, we identify ethical issues that tend to arise within our chosen profession. To consider ethical issues, we need some level of guidance, which is the code of ethics.

Read More
1347 Words | 6 Pages

It is essential for individuals and those representing an organization to understand what is an ethical dilemma. Wells Fargo financial corporation was involved in a dramatic ethical issue due to millions of unauthorized bank account openings. As explained in The PLUS Ethical Decision-Making Model, “many organizations battle to develop a simple set of guidelines that make it easier for individual employees, regardless of position or level, to be confident that his/her decisions meet all of the competing standards for effective and ethical decision-making” (n.d). The Wells Fargo scandal is evident prove that employees lacked ethical judgment and management supervision. The seven ethical decision-making steps foster straightforward thinking that

Read More
714 Words | 3 Pages

The Code reviews broad ethical principles that reflect the profession's center values and builds a set of particular ethical standards that should be used to manage social work practice. 3. The Code is meant to help social workers recognize relevant considerations when professional obligations conflict or ethical uncertainties arise. 4. The Code provides moral standards to which the general public can take the social work profession responsible.

Read More
468 Words | 2 Pages

Decisions taken within an organization are made by the leadership in light of the company’s culture, principles and policies. Leaders are the role models as they set the tone for the ethical stance of their individual followers, or the group they lead. As an ethical leader, they are expected to take responsibility and work to correct mistakes. They must ensure the company has an effective internal controls in place to identify unethical practices. In my opinion, big companies in their audit and compliance committees should have members who may act as ethicist to assess whether the actions of the company are consistent with the desired ethical

Read More
1155 Words | 5 Pages

Its code of ethics can be found in the Appendix. A Code of Ethics describes standards of conduct of an organization 's

Read More
830 Words | 4 Pages

In most careers professionalism is a valuable trait to have in a person’s work ethic. Social work is most certainly the kind of career in which professionalism is highly important. There are a variety of behaviors that depict professionalism. Some examples of these behaviors are appearance, demeanor, competence, ethics, verbal and writing skills, and many more. Throughout the social work program, the importance of professionalism has always been stressed, and there were several assignments that were given to us in order to apply professionalism in our field practicum and to help prepare us for our career.

Read More
1306 Words | 6 Pages

1. Introduction – ethics – what are they? Ethics (or moral philosophy) is the kind of philosophy that define concept of right or wrong conduct. In practice, ethics try to resolve questions of human morality, by explaining concepts of good and evil. Ethics, culture, morals – are bind together, they are embedded.

Read More
1451 Words | 6 Pages

“Ethics”, in an organizational context, comprises a set of behavioral standards, expressed as norms, principles, procedural guides, or rules of behavior, defining what is appropriate (right) and inappropriate(wrong). Grounded in a system of values and moral principles, these behavioral

Read More
931 Words | 4 Pages

In this Enron Scandal ,several moral issues and values are being discussed .The moral issues is the misconduct of code of ethics by management level of a corporation , violation of code of professional ,ethical dilemma that faced by a management level when involved own interest . The first moral issues that discussed in Enron Scandal is misconduct code of ethics by management level of a corporation .In this case ,the mastermind of this scandal is the company CEO , Mr .

Read More
1191 Words | 5 Pages

A) Introduction Unethical behaviors in business affect everyone since you either work in the field or are a consumer of its services. Unfortunately, almost every company usually has individuals who act unethically whether it is for their personal benefit or for the sake of the company they work for. Unethical behaviors in business might be as simple as using company property or funds for personal gain to inside trading and financial fraud. According to The Chartered Institute of Management Accountants, nearly one third of business professionals feel pressured to compromise their ethical standards and are increasingly pushed towards unethical behavior. Moreover, “misconduct is common and accepted by business services professionals, the integrity of entire economic systems is at risk”, states Jordan A. Thomas, partner and chair of the Whistleblower Representation Practice at Labaton Sucharow law firm.

Read More
1324 Words | 6 Pages

Ethics and integrity is essential and played an important role in helping the growth of the business. Behave ethically could contribute to good performance and customers’ satisfaction. This lead maintains and expands the relationship between both parties and indirectly would increase company reputation (Bandsuch, M 2009). According to the Trevino & Nelson (2010), behave in ethics and integrity not only could stronger the relationship with the customers, but also the relationship with the stakeholders.

Read More
1710 Words | 7 Pages

These scandals have made the morality of accountants and businesspeople. The main contributors of business ethical standards are the accountants. The accounting profession has a duty to play so as to reduce the corporate scandals. They should make sure that there is proper financial management, quality audit, ethical standards improvement and that the governance regimes are strengthened

Read More
2877 Words | 12 Pages

Review of Literature Unethical behavior can tarnish a company’s image and reputation. If a company is unethical, they may have to spend additional money to improve their public image, as well as gain back as many customers as possible. The reason I have chosen to use articles that are quite a few years old and that are not so recent is because I feel that they are very good examples of what I am trying to prove in the terms of ethical behaviour within companies and these specific articles relate well to my chosen topic.

Read More

More about Ethical Issues In Auditing And Accounting

Related Topics

Open Document