Audit Ethical Dilemmas

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INTRODUCTION Should the audit firms continue with self-regulating or should the government intervene by implementing the mandatory rotation of audit firms? This question is influenced by the increasing public’s concern about the conduct of professional auditors. Currently firms are self-regulating but if the government intervenes, the public might be at ease. Auditors face many ethical dilemmas and the way they resolve these dilemmas results in their professionalism being questioned. There are certain concerns that society has when it comes to auditors codes of professional ethics and the crucial role that they play to make sure that these professionals conduct themselves in a professional manner. These are a few of the many concerns…show more content…
Since this is such a significant problem that is faced by the auditing profession. Before auditing any company, the auditor must confirm that there is no conflict of interest with the client. If the auditor discovers during the audit that there might be a conflict of interest, they must disclose that immediately to their audit team and to the client. Afterwards they should withdraw from the audit being performed and the work done by the auditor thus far must be reviewed for discrepancies. Auditing professionals are sometimes required to review a previous judgement passed, regarding a client that they have audited. This possesses an ethical dilemma because if the auditor discovers errors in the work performed previously it may lead to them having a different opinion regarding the audit, this would highlight the lack of professional integrity and competence that the auditor has and that will reflect badly on the auditor. This leads to the auditor being biased against their own review which will result in the auditor making a prejudice decision in an attempt to protect…show more content…
According to Christopher Stones, businesses have a responsibility to give back to the community not just to maximize wealth for shareholders. This means, businesses should implement their Corporate Social Responsibility (CSR). Corporate Social Responsibility is a form of self-regulatory mechanism whereby a business monitors and ensures its activities comply with the law, ethical standards and common law. Examples of Corporate Social Responsibility (CSR) activities include public work programs, Reconstructive Development Programs (RDPs) and voluntary work to communities According to Freeman, giving back to the community takes place in the form of legal development, economic development and ethical

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