Ethics-general rules in professional conduct

Professional accountants are required to observe
proper standards of professional conduct whether or not the standards required
are written in the rules or are unwritten.
Apart from the ethical rules each professional body
has for its members the auditing

practice board (APB) issues its own ethical
standards. These cover broadly the same areas as set out above and also include
standards applicable to auditors of smaller companies which we will refer to in
chapter 30.

Auditors are specifically required to refrain from
misconduct, which is difficult to define precisely, but which includes any act
or default which is likely to bring discredit on them, their professional body
or the profession generally.
Several generally points can be made:
·        
Professional
independence is exceedingly important. This is very much an attitude of mind
rather than a set of rules but there are many rules which we will describe
later.
·        
Integrity
is vital. Synonyms for integrity include honesty, uprightness, probity, moral
soundness, rectitude. Auditors are required to have the intellectual honesty to
come to their own conclusions and the courage to defend their opinion in the
cases of any dispute. As we have seen an important aspect of integrity is
confidentiality.
·        
Accountants
must not only be people of integrity and independence; they must also be seen
to be so. Any interest (e.g. owning shares in a client company) which might appear
to must be avoided.
·        
When
auditors have ethical’s difficulties or are unsure of what course of conduct to
follow, they should consult their professional body or take legal advice. If in
doubt always seek advice.

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