Phase 2`

Topics: Financial audit, Audit, Certified Public Accountant Pages: 2 (991 words) Published: October 25, 2014

Sarah GunsetACCT 325
Phase 2 IP-2Jason Cade
July 21, 14
Ethics plays such an important role in the business world. There are organizations and boards that set guidelines specifically to improve the work environment and help control the amount of ethical dilemmas. The SEC works as the head quarters for these boards and has developed many new guidelines since the crisis of the early 2000’s. The International Ethics Standards Board for Accountants (IESBA) has established ethical standards and guidelines for accountants similar to those of the AICPA’s Rules of Conduct. There are many organizations that are working in unison to create the best atmosphere for the business world and those involved. Auditors are already in a risky field due to the companies and investors that depend so heavily on their work. The opinions of auditors are held at such high standards yet criticized immensely by every opposing party. These encounters are inevitable making it so important that auditors follow every guideline, ethical and standard. The IESBA has created specific guides for accountants leaving less room for error. This Code of Ethics consists of 5 principles: Integrity

Professional Competence and Due Care
Professional Behavior
An auditor must always be honest and posses respectful moral qualities. Having integrity, an auditor will always give a sincere fair audit that is truthful and reliable to the company and its investors. Without the integrity of an auditor, there would be no foundation or value to the opinion. Auditors must also stay clear of illegal business and independent of clients. Auditors should remain objective at all times. The audit should always be fair and neutral. No bias opinions should ever be formed and an auditor should refrain from a project if they are not able to be independent. It is the Auditors job to stay up-to-date in their profession. Auditors should act professional and meticulous. They...

References: Rittenberg., Johnstone., & Gramling. (2012). Auditing: A Business Risk Approach (8e ed.). South-Western.
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