Week 3 - Why is There a Need for Ethics

Question 1

What are the first two reasons for ethics in auditing?

Answer 1

• maintain reputation of professional accountants
• act in the public interest

Question 2

What are the second two reasons for ethics in auditing?

Answer 2

• meet the legitimate interests of: clients, government, employees, investors, financial institutions and business and financial community
• reliance on accountants/auditors and their expertise

Question 3

What does professional ethics attempt to provide?

Answer 3

Independence of the mind and in appearance

Question 4

What are the five principles we should be abiding by?

Answer 4

professional behaviour
integrity
professional competence and due care
confidentiality
objectivity