Ethics in Auditing

Ethics in Auditing

Ethics is the branch of society which is the systematic study of reflective choice, of the standards of right and wrong by which it is to be guided, and of the goods toward which it may ultimately be directed (Louwers, Ramsay, Sinason, Strawer, and Thibodeau, 2013, p 589). In an article titled, Morals and Ethics of Auditing, ethical behavior is defined as, all matters relating to morality, right, wrong, good and evil according to the prevailing moral traditions, and may not depart from it in order to preserve civilization and well-being of society. Which all to me relate to factors in which reflect the overall success of an organization, an individual’s integrity, ethical values and competence of the entity’s people.

The success of a company starts with the internal control environment. And an auditor plays a major role in the success of that company. Accounting work consists of intentional and unintentional errors. Auditors must maintain a high level of standards in order to correct these errors and prove whether the error is intentional or not. Sound integrity and ethical values set the standard of conduct for this type of financial reporting.

Recent corporate scandals and earnings restatements have resulted in an increased emphasis on the need for strong corporate governance to ensure financial reporting quality and the internal audit function plays a unique and critical role in corporate governance by monitoring organizational risks and helping ensure financial reporting reliability (Alizadeh, 2011). Effective supervision does not guarantee deterrence of fraud but the use of internal auditing services. Internal auditing is consulting and reliable, independent and neutral activity which is designed for increasing organization operations value and optimizing. Its goal is helping to the organization with a systematic approach for accessing to its goals by valuing and efficiency optimizing of risk management process, organizational...