Chapter 3 Power Point

Chapter 3 Power Point - Chapter 3 The Auditors Role in...

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Chapter 3 The Auditor’s Role in Society Prepared by Adrianne E. Slaymaker, D.B. A. CPA
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Reliance on Auditors Auditors are Professionals Auditors perform with due professional care Auditors’ clients are: The shareholder group is actually the client The shareholders elect the board of directors The audit committee is a subset of the board of directors The audit committee selects and hires the auditors, oversee the auditor’s compensation, and interact with the auditors Learning Objective #1
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Auditing as a Profession A profession is an occupational group on individuals with a collective identity Community of peers (AICPA) Entry and Membership (CPA) External Regulation (SEC, PCAOB, State Boards) Individual Characteristics Social Contracts Learning Objective #3
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Sociology of Professions Learning Objective #4 Entry and membership in the group Regulation Self regulation Coordination with authorities Individual characteristics Taxonomic description Technical expertise Integrity Believe their work is of value, important Believe they make a contribution through their work Social contract to perform with due care
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Ethics What is Right? Right is what creates the greatest good Right is fundamentally whatever is “right” regardless of consequences Right is whatever preserves the life of only one person Right is the decision made by a single ruler with ultimate authority Right is the decision made by the group of people affected Right is whatever the law requires Moral Development Pre-conventional level (self-centered decisions) Conventional level (impacts beyond personal) Post-conventional level (abstract analysis of right and wrong) Learning Objective #2
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Ethical Orientation Greatest good Moral imperative (what is fundamentally right) Value of life Single authority Democratic rule Rule of law Value of Using an Ethical-Based Mode Supports considering ethics during the decision making process Does not guarantee a particular decision result Moral dilemmas will still exist; Just helps provide a process for addressing them Learning Objective #2
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Moral Dilemmas &Ethical Decision Making [Exhibit 3-1] Learning Objective #4
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Exhibit 3-2 Learning Objective #4
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This note was uploaded on 02/22/2012 for the course ACCT 512 taught by Professor Slaymacker during the Spring '12 term at Globe.

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Chapter 3 Power Point - Chapter 3 The Auditors Role in...

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