Ethical Standards in the Auditing Profession

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2.6 Theoretical and Empirical of the study According to literature, Ethics are the moral principles that guides an individual’s behavior in deciding on actions that are “right or wrong”. (Oraka et al. 2015). Ethics shapes the life of an individual in taking actions that are deemed to be right or wrong and also appropriate and acceptable to society. The actions that one takes are supposed to benefit society or stakeholders either positively or negatively. (Oseni, 2011). According to Oseni (2011), professionals are to behave and act in the public interest. They must always be guided by what is generally acceptable in society and act upon them. Compliance with ethical rules set out by society or organizations must in the long run serve the interest…show more content…
The auditing profession is one that depends on compliance with these five principles in order to ensure quality audit and assurance services. Researchers found that auditors have high regards for compliance with ethical principles of auditing which invariably impacts positively on the quality of audit. Al-qtaish et al. (2014) revealed that auditors’ commitment to objectivity, integrity, competence, professional behavior, and confidentiality is high in the order presented which also has a positive impact on audit quality. Syamsuddin et al. (2014) conducted a study which revealed that there is an indirect relationship between ethic and audit quality unless it is influenced by a professional skepticism. This means that auditors perform their professional duties with a high level of Integrity, objectivity, and professional manner to produce an audit…show more content…
According to Selin et al. (2014), they believed that both independence and objectivity of internal auditors are key factors to adding value to the auditing profession. Therefore compliance with this principle enhances the credibility of the profession. Professional Behavior: This principle imposes an obligation on the auditor to comply with laws and regulations of the profession. These rules and regulations include complying with the ethical standards of the profession as well. Selin et al. (2014) revealed that internal auditor’s compliance with ethical standards in most parts of the world except Latin America and Caribbean, is low with an average of 41% across the global
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