Financial prudence is crucial to the success of any organization. To ensure that there is accountability in organizational finances, auditor’s oversight and scrutiny of the finances of the organization are necessary. As stated by Jashu, the auditors ensure that corporate financial reporting meets the required legal standards. Auditors have a mandate to ensure that the financial reports are beyond reproach, and this calls for absolute independence of the auditor. The auditor has a duty to the client, which is enshrined in law and practice. Thus negating that duty to the client makes the auditor liable to the extent of the negligent action or malpractice (Morris & Mintz, 2019).
Jashu post brings out critical aspects that are aimed at protecting the sanctity of auditors’ mandate. These aspects include the independence of the auditor, professional skepticism of the auditor, reasonable assurance, and open regard of the whistleblowing policy. All these factors work towards ensuring that the audit outcomes are beyond reproach of wrongdoing, have low audit risk levels, and achieve the primary objective of spotting out misstatements and wrongdoings in reporting.
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The primary objectives of an audit make the six pillars of character as a foundation for auditing. These six pillars of character guide the auditor into the ethical parameters that guarantee that the auditors’ work is not tainted; good citizenship, trustworthiness, responsibility, fairness, caring, and respect (Alexandra, 2015). It is evident that all these six pillars confine one personality to an ethical one. Deviating from these six pillars of character exposes the auditor to liability as a result of malpractice. Just as the bible says, we are supposed to honest in every action of our lives; falsifying balances are morally wrong and according to the teachings of the Bible (Proverbs 11:1, The New King James Version).
References
Alexandra, A. (2015). Study Regarding the clarification of ethical dilemas in financial audit. Audit Financiar, 13 (125), 75-90.
Morris, R., & Mintz, S. (2019). Ethical Obligations and Decision Making in Accounting (5 ed.). McGraw-Hill.
