Ethics of an Auditor

Ethics is an important aspect of any profession and it should be utilized to the best of its ability. Ethics gives the auditor direction on what decisions he or she should make that will be honest and effective in the organization. “Ethical accounting refers to the process in which data is gathered with regard to the organizational goals” (Ionescu, 2009. P. 122). I agree with you that the ethical guidelines used in a company work together to promote professionalism and integrity. Without these guidelines, many auditors may use their own judgment without thinking of the consequences that their decisions would bring. According to Ionescu (2009), Ethical auditing is a comprehensive and integral approach: integral, because it combines different approaches with different methodologies and comprehensive, because it takes the entire organization into consideration with all the different perspectives that prevail in different functional areas. (p. 122).

The ethics of auditors and accountants focuses on not only the public but also the company in which they serve. Ethics promoted compliance with GAAP professional conduct. When auditors used ethics, they should focus on also keeping their independence because their ethical standards can be jeopardized by forming too many close relationships. “A member in public practice shall be independent in the performance of professional services as required by standards promulgated by bodies designated by council.”(Louwers, Ramsay, Sinason, & Strawser, 2009, Module B-11) As you stated, failure to observe ethical guidelines can result in financial and diciplinary reprucutions. This is so because, the auditor is to unhold the rules of the governing board and “the ethics of organisational life assumes that members of organizations have a moral obligation to conform to the organizational and community rules that they had no part in creating” (Ionescu, p. 123). Auditors have an obligation to uphold honesty and integrity before the company...