Question

Why do you believe that it is important for auditors to act in an ethical manner? Examine the ethical code for accountants promulgated by your state licensing board. What does it say? Pick another state's ethical code for accountants and compare it to your state's code. How is it similar? Are there any differences?

Answer 1

Auditors are the one whose opinion over the financial statements prepared by the management is relied upon by stakeholders in framing decision. Acticing ethical shall include not only working honestly but also with professional sketicsm, having updated knowledge of application of law. Thus it is imperative for auditor to act ethically to reduce chances of error as well as stand to the trust imposed by stakeholders on their opinions

***assumed your state is Arizon since u did not mentioned it specifically***

In Arizon, 4 hour of ethical training is required which Cannot be taught by an employer or co-worker and must include a minimum of one hour of each of the following subjects:

• Ethics related to the practice of accounting including the Code of Professional Conduct of the American Institute of Certified Public Accountants; and
• Board statutes and administrative rules.

Whereas in Alabama no training is required.