Question

Describe how the audit profession is different from most other professions. Discuss how this difference may create a demand for a code of professional conduct.

Please answer the question directly in about 6-8 sentences. Thank you

Please don't compare to other specific jobs. Be general, use the idea that most professions don't require a professional conduct code. Why don't other jobs require it? Why does the audit profession have a demand for a code of conduct?

Answer 1

Answer:

Audit Profession is different from most other professions which may create a demand for a code of professional misconduct.

The auditor's responsibility is not only to satisfy the needs of an individual client but also to act in the public interest & hence the need for professional conduct is required so that Audit is carried away in an effective & efficient manner without adopting any unfair means.

The objective of the code is to provide credibility & reliability to the users of financial statements.

If we compare it with other most profession which does not require code of conduct as many professions do not impact the public interest, but the public interest is involved in the audit profession.

In some profession code of conduct is not necessarily required as the decision of that profession may impact in a negligible manner however in Audit profession many users whether it is internal or external such as Management, Government agencies, Employees, Tax authorities, financial institutions, etc all are relied upon & hence need the code of conduct for this profession.