Issues about ethics in auditing are a big concern for companies. Users of financial statements such as creditors, investors, and the public depend on the auditor to ensure there is integrity in statements. Generally Accepted Auditing Standard (GAAS) and Generally Accepted Accounting Principles provide auditors with several guidelines concerning professional obligations and independence. For example, auditors are not supposed to own any shares in the company they are performing audits. Additionally, financial statements that have a financial interest to lenders, investors, and owners require auditing independence.
Auditors should maintain integrity in their action, a significant indicator of trust, thus promoting reliability in findings and while making the conclusion. Additionally, auditors should observe independence values, moral standards, and impartiality while making judgments regarding unconditional activities and professional conduct in all activities (Merkel, 2017). Conflict of interests should be avoided while performing auditing because it may result in biased results. Favor in auditing influences the outcome since an auditor can avoid certain aspects that help unveil significant loopholes to which organizational efficiency may be lost. Therefore, auditors should exercise incomparable standards of honesty, ethical behavior, and handedness. Auditors should accomplish their work in meticulousness, uprightness, and accountability by observing the law.
Delegate your assignment to our experts and they will do the rest.
Auditors have the mandate to make disclosures as guided by law in their professional duties. This involves avoiding situations that may result in unlawful activities or those actions which are disreputable in the auditing profession (Merkel, 2017). Auditors should respect their counterparts' work in similar or different companies and acknowledge distinct capabilities incompetency. Respecting other primary players promote excellent good work relations and possible future collaborations.
Summing up, ethics in auditing plays a significant role in promoting honest and trust of companies. Auditors should observe independence values, moral standards, and impartiality while making judgments regarding unconditional activities and professional conduct in all activities. Additionally, auditors should exercise incomparable standards of honesty, ethical behavior, and handedness.
References
Merkel, K. (2017). The importance of ethics in auditing: fraud and ethical breakdowns.
