Ethical Issues in Auditing

Auditing 300

Semester 1, 2012

Assessment One: Individual Report

Ethical issues in auditing

Name Mark Kazuo Uei Jiin Ting

Student ID 13643016

Tutor Name Mir Muhibul Islam

Tutorial time Wednesday 1pm

Date Submitted 16/3/2012

Word Count 999

Executive Summary

This report provides an analysis regarding professional and ethical issue faced by John, a young auditor, in auditing Moulberg Electical Appliances ltd. The firm, require John audit report as part of the due diligence assurance engagement for the firm prospectus. In order for the firm to be listed on the ASX, a sound and reliable audit report is required. This process however has brought up ethical and professional issue between John and his fellow audit partner, Chandler regarding the final audit report. As well as discussing these issues, this report will also include recommendation that help defuse these issues.

1.0 Introduction

The central issue in this report is mainly regarding the dilemma faced by John toward his superior, Chandler, unprofessional manner of conduct. This arises because John unsatisfactory findings regarding the firm has appeared largely ignored by Chandler, as he overturn the findings, and reported a positive outcome instead. This report firstly discuses professional issue that been raised, secondly it examines the ethical issues that has been breach and finally, it makes recommendations regarding how to tackle these issue efficiently.

2.0 Professional Issues

John has the responsibility as a auditor, to acknowledge that he has to act in a professional capacity not only in the interest of his superior, but in the interest of his client. Given that all auditor are bound to the professional ethical code of conduct, John should not rush to judgment regarding his superior decision just because his superior do not share his opinion, or from John perspective look as if his judgment is completely disregard [2].

John conclusion regrading the firm poor...