Ethics and auditing

Reprint and Translate Code of Ethics The Code of Ethics states the principles and expectations governing the behavior of individuals and organizations in the conduct of internal auditing. It describes the minimum requirements for conduct, and behavioral expectations rather than specific activities. Introduction to the Code of Ethics The purpose of The Institute's Code of Ethics is to promote an ethical culture in the profession of internal auditing. Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations.

Ethics and auditing

Introduction Ethics is concerned with the requirements for the general well-being, prosperity, health and happiness of people. It requires knowledge of moral principles, and skills in applying them to problems and decisions. Identifying organisational values - both proclaimed and actual - will assist a company to ensure that all its actions are commensurate with these values, and enable it to put in place a robust structure to support the operationalisation of the values.

Many ethical problems for multinationals and companies trading far from their home base arise because of differing value systems: Ethical audit determines the internal and external consistency of a company's values base. It begins internally, with a review of paper, processes and people.

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The findings of the audit are then tested out with stakeholder groups, to ensure that the values base is one which is shared by, or at the least acceptable to, all its key stakeholders. The results provide important management information, and can and ideally should be used to report on the company's social and ethical performance, either as part of the annual report or as a supplementary report.

The aim of this paper is to develop an ethical analysis to emphasize the importance of appropriate ethical decision making during the audit process. It considers the different categories of ethical theory and study the developments towards ethical audit.

Furthermore, this paper provides an opportunity for multi- national companies to standardise the internal audit practice and details issues related to ethical audit at an international level. Moreover, this paper also aims to show how the consumer power dictates the companies to conduct themselves ethically.

Finally conceptual framework discusses how an ethical audit is organisation centred and focuses on ethics from boarder stakeholders perception.

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The paper finds that auditing may benefit from an increased focus on ethical discernment and ethical behaviour. Hence, ethical behaviour may help restore trust and confidence in the capital market system and reduce financial reporting fraud.

Literature review Code of ethics are important since they implicitly set limits or unethical behaviour and are intended to offer guidance in ambiguous situations.

Code of ethics can perform several organisational functions, such as making explicit the ethical values that were previously unstated or unclear, alert employees as to what actions are unethical and unpunishable, and helps firms shift accountability of actions from organisation to individual.

An ethical theory expresses the principles that give reasons for choosing to act in specific ways. An ethical framework is a set of norms and principles that serves as guidance for individual actions.

Individuals act to achieve something they contemplate as good, something valued. To frame an ethical theory one has to identify a purpose. It is of utmost importance to consider this carefully because one will get different theories depending on the purpose.

If the purpose is to serve society, you get one kind of ethics; but if the purpose is to perform a duty, one has another kind of ethics.

Ethics and Auditing

Ethically, things may seem relativelystraightforward at the level of the individual auditors engaged in the practice of auditing. Auditors ought to carry out their standard procedures carefully, diligently and punctually in accordance with their instructions and the appropriate auditing standards and procedures.

The virtues of integrity, objectivity, independence, confidentiality, upholding technical and professional standards, competence and due care, which are all highlighted in the Code of Professional Conduct, seem particularly appropriate.

Ethics and auditing

Among the concepts that have been used — apart from Corporate Social Responsibility — are sustainable development, corporate citizenship, sustainableentrepreneurship, the triple bottom line and business ethics 11 Even supposing the adequacy of such categorisations of virtues 10putting these virtues into practice is not a simple matter.

There may be morally relevant problems for practicing auditors when tasks are set that go beyond what the time and expertise available render feasible. In these circumstances, should those involved seek to disguise the limitations of their work, thereby risking the displeasure of their superiors and hazarding their career prospects, or should they just do what they can, perhaps in the dim awareness that their superiors might prefer not to be informed of weaknesses in the process that they are not themselves in a position to remedy.

Moral rules are held to be binding independently of the consequences of putting them into practice. It is not for us to calculate the consequences of truthfulness, just to be truthful.

A moral person knows what is right and must be what is right simply because it is right 7. Its objectives are two-fold: The value of the ethical audit is that it enables the company to see itself through a variety of lenses: Companies recognise the importance of their financial profile for their investors, of their service profile for their customers, and of their profile as an employer for their current and potential employees.

An ethical profile brings together all of the factors which affect a company's reputation, by examining the way in which it does business. By taking a picture of the value system at a given point in time, it can: Codes of ethics are important since they implicitly set limits for unethical behaviour and are intended to offer guidance in ambiguous situations.

International Business and Ethics Recent corporate collapses around the world show that there are no national boundaries for these occurrences.Ethics in accounting and auditing are very important to make sure you don't break any laws. Find out about ethics in accounting and auditing with help from a senior financial analyst in this free.

1. Review the company's formal codes of ethics, ethics training programs and compliance policies for legal and industry guidelines regarding ethics. Peter Holtmann, president and CEO of Exemplar Global, discusses the role of ethics in auditing and how personal biases make ethical audits more difficult.

How to Conduct an Ethics Audit team visits an area of the organization to conduct research in response to a specific incident or as part of an ongoing auditing cycle. Definition of ethical auditing: Neutral, third-party verifiable process to understand, measure, report on, and help improve an organization's social and environmental performance.

Dictionary Term of . The purpose of The Institute's Code of Ethics is to promote an ethical culture in the profession of internal auditing. Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations.

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