Lecture_3__web - General Ethics General As part of a...

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General Ethics General Ethics As part of a privileged profession, auditors have a set of moral, professional, and legal responsibilities to society. Professional responsibilities (ethics) are the rules and principles for the proper conduct of an auditor in his/her professional work. Ethics are necessary for respect and confidence of the public. Rules of professional conduct attain order within the profession. Rules of conduct provide a means of self- policing the profession.
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Auditors’ Responsibility to Auditors’ Responsibility to Society Society 1. Moral Responsibilities. Covered under the study of ethics. “A public accountant should be upright, not kept upright.” 2. Professional Responsibilities. Covered by the rules of conduct. 3. Legal Responsibilities. Covered under criminal and civil law.
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An Ethical Problem An Ethical Problem In your work as an auditor, you discover that the cashier, who has custody over the petty cash fund, has forged several payment records in order to cover innocent mistakes and to make the fund balance each month when it is replenished. Your investigation reveals that the amount involved during the year is $240. The cashier is a woman, age 55, and the president of the company is a man who can tolerate no mistakes, intentional or otherwise, in the accounting records. In fact, he is unyielding in this respect. He asks you about the results of your audit. Not doubting that the cashier would be fired if the forgeries were known, should you remain silent and thus not tell the truth?
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Rules of Professional Conduct & Code Rules of Professional Conduct & Code of Ethics - Fundamental Principles of Ethics - Fundamental Principles The member should: act to maintain the profession’s reputation. use due care and maintain his professional competence . maintain independence in the appearance , as well as the fact of independence of his or her professional judgement. preserve client confidentiality . base his reputation on professional excellence. show professional courtesy to other members at all times.
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Fundamental Principles in Fundamental Principles in Codes of Conduct Codes of Conduct Members should at all times maintain the good reputation of the profession and its ability to serve the public interest.
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