Question

What are the ethical principles breach if the audit partner did not do the necessary adjustments?

Ethics Case Study: Do Not Let Your Friends Suffer

1- define ethics

2-analyse the case

3- ethical principle breach

4- conclusion

Answer 1

1.

Ethics :

A code of ethics is a comprehensive statement which indicate values and principals and guide the auditor for doing day to day work of auditing. Ethics should be design to win the trust, confidence and the creditability of the client to do the audit with full faith and the code of ethics.

2.

Analysis :

As per the requirement these are the various code of ethics principal used by the auditor. A code of ethics for auditor in the public sector should consider the ethical requirement of civil service in general and these are  the code of ethics used:

-Integrity:It is the code value of code of ethics under which auditor have to provide high standard of behaviour towards honesty otherwise it will be consider breach of principle of ethics.

-In order to win the confidence of the public auditor should be positive nd applied the fact while auditing otherwise it will be treated as breach.

-Auditing should be done independent and as per the accounting standards .

-Auditor should used the information properly which is provided by the client and make result and provide report accordingly.

-It is also the duty of the auditor to gather information about the view of entity to be audited.

-Auditor should protect their independence by avoiding gift of any possible conflict of interest.

-Auditor should avoid to make any relationship with the manager and the staff and make work independently in order to avoid any influence.

-Auditor should not use official position for private purpose.

3.

Ethical Principle Breach :

All types of auditor must follow these guidelines to promote ethical conduct which is made up of two sections principals and the rules if these codes are not followed it will be consider as breach of ethical principals:

-If the auditor is not follow the professional duty and moral judgement while doing there job are consider to be ethical breach.

-The CPAs should act in order to serve public interest, honour the public interest and also commitment to professionalism than it is found to be ethical breach.

-The auditor should be perform there professional duty with high sense of integrity and also to win the confidence otherwise it consider as ethical breach.

-Auditor should protect their independence by avoiding gift of any possible conflict of interest otherwise it consider as ethical breach.

-Auditor should avoid to make any relationship with the manager and the staff and make work independently in order to avoid any influence otherwise it consider as ethical breach.

-Auditor should not use official position for private purpose otherwise it consider as ethical breach.

-CPAs should maintain objectivity and must be free of conflict of interest while performing there professional duties.

4.

Conclusion :

So it will be conclude that while performing the professional duties by te auditor it uses be follows professions technique and ethical standard in order to improve competence and quality of the service with no compromise and discharge there professional responsibility to the best of there ability so that maximum benefit be achieved by the client from the auditor and its team . If there is neglected then it should be liable for the code of conduct and code of ethics for professionalism.