The Code of Professional Conduct for Auditors - 1516 Words

All organizations have a code of conduct, whether they have established them or not. This code creates a set of expectations and builds a framework to guide their members in all actions and operations. The code of professional conduct for auditors is one of extreme importance. The six main principals include the following: responsibilities, the public interest, professional due care, objectivity and indepdence, integrity, and the scope and nature of services. The manner in which an auditor performs and incorporates these six principals in his or her duties has a great effect on how they are viewed by clients, colleagues, and society, and any discovered disloyal actions results in costly punishments. Section 52 of the code of conduct, created by AICPA, states that the auditor must carry out their responsibilities as professionals. Although this seems like a simple and straightforward requirement, one would be quite surprised to learn how some auditors have interpreted this while performing audits. One case involves the nutrition company Herbalife and former KPMG audit partner Scott London. Scott London, an auditor of 30 years, leaked insider trading information to a friend, Bryan Shaw, who was in need of financial help. Shaw was able to use Londons confidential information to earn over 1 million dollars. He thought he was helping a friend, but in the end he put his career, reputation and life at stake. Recently, London was sentenced to prison for fourteenShow MoreRelatedThe Code Of Professional Conduct885 Words   |  4 PagesWeaknesses Conflictions in the Professional Code The AICPA Code of Professional Conduct, regardless of its numerous strengths, the Code of Professional Conduct has some serious weaknesses. The accounting profession is constantly changing and making improvements. The first weakness in the Code of Professional Conduct deals with conflictions within the code due to the code being constantly updated (Dienhart, 1995). Dienhart, Lunday, and Tavani have all criticized professional codes because the directivesRead MoreThe Case Of Cardillo Travel Systems Essay1554 Words   |  7 PagesSituations arise that cause companies to conduct or record fraudulent transactions to deceive the stakeholders or in the case of Cardillo Travel Systems, meet court orders. Cardillo Travel Systems, ranked as the fourth largest company in the travel agency industry, was founded in 1935 and purchased by A. Walter Rognlien in 1956. After being acquired by Rognlien, annual revenue increased steadily but expenses were increasing at a more rapid rate. By 1985, Cardillo was involved in a lawsuit and a courtRead MoreAicpa Code Of Professional Conduct1589 Words   |  7 PagesAICPA Code of Professional Conduct: AICPA’s Principles on Ethics Abstract Life is all about making decisions. 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Since, the auditor acquireRead MoreAccounting and Ethical Practices727 Words   |  3 Pagesfuture. (Foreign Corrupt Practices Act, 2013) B Identify and discuss at least four ethical implications of those acts by Gilbert that were in violation of the AICPA Code of Professional Conduct. The case, is illustrating how failing to reveal the loan on the property is a violation of the AICPA Code of Professional Conduct. The most notable include: not acting in the interests of the public, utilizing integrity, maintaining objectivity / independence and due care. In this situation, GilbertRead MoreStandard Issues: Aicpa993 Words   |  4 Pagescreated a code of professional conduct that all certified public accountants must follow. This code of conduct lists the responsibilities CPAs have when working with a company s financial information. The AICPA also includes information regarding the integrity, objectivity, independence and due care that CPAs must use when working in the accounting industry. 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The authors emphasize the role of the AICPA Code of Conduct and ethical perspectives for accountants and auditors. Introduction. The authors study profiles of firms that included the accounting fraud. The main objective of the research is to improve the ethical conduct for accountants through the demonstration of the gap between constituted rules and its implementation in practice using the Enron and ArthurRead MoreAuditing Procedures And Reports Used By Auditors Essay976 Words   |  4 Pagescontrast of audit procedures and reporting that is used by auditors. This paper also compares the Explanatory Report to the Standard Report. An audit can be very complex in its process of checks that ensure information is correct as recognized. Auditing looks like a numbers-based analysis and it is imperative to be able to audit the procedures of the past to recommend future improvements for success. Audit Reports There are a number of auditor reports that exist. These include unqualified, explanatoryRead MoreMr. Friehling – a Future Auditing Case Study1206 Words   |  5 PagesDavid Friehling will quite possibly be a future case study in auditing textbooks and courses throughout the United States. Mr. Friehling was the auditor for Bernard Madoff, who was recently convicted of running the largest Ponzi scheme ever uncovered through his business, Bernard L. Madoff Investment Securities, LLC (BMIS). Mr. Madoff claimed to actively oversee more than $65 billion in private investments (it was later revealed that roughly $823 million remained of the more than $170 billion that