Ethical Issues In Auditing And Accounting

1.5. Auditing and the Ethical conflict
It is not a trouble-free issue to determine what is ethical or legal in auditing and accounting. A great degree of agreement is easily obtained as to the appropriate ethical values and their supplementary qualities, such as truthfulness, honesty and law-abidingness. But talking how these values should be translated into actions in examining the financial reports of businesses turns out to be unclear when the issue gets downward to the details. Determining what is and is not ethical in auditing turns out not to be simply a matter of detecting fraud, corruption and other criminal conduct .
An ethical conflict occur when the responsibilities toward one group are contradictory with duties to another; this

In this sense, it will be useful to identify the particular responsibilities of an auditor.
1.6. Code of Ethics
The code of ethical and professional conduct in the field of financial audit and accounting attaches importance to the purpose of the two professions that is represented by job performance at the top standards of professionalism, to achieve the highest level of performance and normally to attain the public interest. As revealed, auditing should implement and maintain the Code of Ethics. The Code of Ethics utters principles and potentials governing behavior of persons and businesses in the conduct of auditing. It illustrates the necessities for performance, and behavioral prospects rather than detailed actions.
1.6.1. The Code of Ethics for Professional Accountants by IESBA The International Ethics Standards Board for Accountants (IESBA) is an independent standard-setting body that serves the public interest by setting robust, internationally appropriate ethics standards, including auditor independence requirements, for professional accountants worldwide. These are assembled in the Code of Ethics for Professional

Therefore, a professional accountant's responsibility is not exclusively to satisfy the needs of an individual client or employer.
A professional accountant and auditor shall act in accordance with the following fundamental principles:
a. Integrity - The auditor or the professional accountant must be straight and honest in the pursuit of professional relationships. Integrity also means decent and truthful dealing.
b. Objectivity – The auditor must not allow prejudices, conflicts of interest or external influences to dominate professional or business judgments.
c. Professional Competence and Due Care – The auditor should perform competent professional services by upholding specialized knowledge and expertise at the level required to ensure that the client receives the services according to up to date developments, legislation and methods. He also should act cautiously and in agreement with appropriate practical and professional