ETHICS AND ITS THREATS TO AN AUDITOR
ETHICS AND ITS
THREATS TO AN
AUDITOR
BY
UADIA CHRISTOPHER
14027674
Ethics
Ethics can be defined broadly as a set of moral principles or values
The word “Ethics” was derived from the
Greek word ethos, meaning ‘character’.
Ethics are standards of behaviour that describes how people react when they encounter different situations
Ethics for Professionals
The professional Ethics code is a part of
Ethics which answers the question: how should the profession be practised?
Professionals are expected to conduct themselves at higher level than most other members of society
Ethics for Auditors
Act as a guideline for ensuring the professional attitudes and conducts in a way that it enhances the image of the auditing profession
They are essential in protecting an auditor reputation Auditors must be completely trustworthy, honest, fair and diligent, which reflects expectations from the profession
The code of Ethics emphasis on the independence of the auditor during the audit process IFAC code of Ethics
Code establishes a conceptual framework that requires a professional accountant to identify, evaluate, and address threats to compliance with the fundamental principles, which includes: a. Integrity
b. Objectivity
c. Professional competence
d. Confidentiality
e. Technical standards
Framework for code of
Ethics
Identify threats to compliance with the fundamental principles
Evaluate the significance of the threats identified Apply safeguards, when necessary, in order to eliminate the threats or reduce them to an acceptable level
Threats
Self-interest threats
Self-review threats
Advocacy threats
Familiarity threats
Intimidation threats
Self-interest threat:
The threat that a financial or any other interest will influence the auditors judgement
Self-review threat:
The threat that an auditor prepares the financial statement and then audit them
Advocacy Threat:
The threat that a client or employer position is been
THREATS TO AN
AUDITOR
BY
UADIA CHRISTOPHER
14027674
Ethics
Ethics can be defined broadly as a set of moral principles or values
The word “Ethics” was derived from the
Greek word ethos, meaning ‘character’.
Ethics are standards of behaviour that describes how people react when they encounter different situations
Ethics for Professionals
The professional Ethics code is a part of
Ethics which answers the question: how should the profession be practised?
Professionals are expected to conduct themselves at higher level than most other members of society
Ethics for Auditors
Act as a guideline for ensuring the professional attitudes and conducts in a way that it enhances the image of the auditing profession
They are essential in protecting an auditor reputation Auditors must be completely trustworthy, honest, fair and diligent, which reflects expectations from the profession
The code of Ethics emphasis on the independence of the auditor during the audit process IFAC code of Ethics
Code establishes a conceptual framework that requires a professional accountant to identify, evaluate, and address threats to compliance with the fundamental principles, which includes: a. Integrity
b. Objectivity
c. Professional competence
d. Confidentiality
e. Technical standards
Framework for code of
Ethics
Identify threats to compliance with the fundamental principles
Evaluate the significance of the threats identified Apply safeguards, when necessary, in order to eliminate the threats or reduce them to an acceptable level
Threats
Self-interest threats
Self-review threats
Advocacy threats
Familiarity threats
Intimidation threats
Self-interest threat:
The threat that a financial or any other interest will influence the auditors judgement
Self-review threat:
The threat that an auditor prepares the financial statement and then audit them
Advocacy Threat:
The threat that a client or employer position is been