Situations
What are some of an auditor’s potential options for reporting a potential fraud?
-Filing a report to the SEC.
- Reporting to the audit board
- Do nothing
To ensure objectivity and impartiality in their assessments, what type of relationship must auditors avoid with this audit client?
Independence
I want to do good for as many people as possible.
Utilitarianism
What ethical obligation requires auditors to safeguard sensitive information acquired during audits, preventing its disclosure without proper authorization?
Confidentiality
Dr. Otero finds herself all by herself preparing financial statements. She notices discrepancies in the client’s records that could potentially inflate the company’s revenue figures. She immediately addresses the discrepancies, conducts a thorough investigation, and communicates her findings. What main ethical principle did Dr. Otero exercise?
Integrity
Referring to Hamilton Wong Case about eating time, what assertion would be violated by eating time?
Accuracy
What fundamental expectation demands auditors to uphold honesty, ensuring truthful reporting to findings and maintaining unbiased professional skepticism.
Integrity
The ends don’t justify some means
Deontology
What ethical obligation prevents auditors from accepting gifts over $50?
Independence
Dr. Otero always asks a lot of questions. She’s known to be unbiased and works through financial statements as so. What ethical principle has Dr. Otero mastered in this scenario?
Professional Skepticism
In the Avis Love case, managers committed a small, immaterial fraud with the justification that they were underpaid. While many people sympathize with the managers, this is an example of a conflict between ____ & _____
Morals and Ethics
Which professional organization establishes ethical standards for auditors to uphold in their practice, promoting integrity and accountability
Professional Code of Conduct
Doing the right thing once makes it easier to do the right thing in the future
- Aristotle
What actions must an auditor take if they become aware of fraudulent activities within their client’s organization, as an ethical organization.
Whistleblower
Dr. Otero is a law-abiding citizen. She makes sure that she adheres to applicable professional standards governing financial reporting and auditing. Dr. Otero is a prime example of someone who exercises Compliance with ___ & ___________.
Laws and Regulations
In the Bill DeBurger case, the partner heavily implied that Bill should write a clean memo despite his lack of certainty.
Which pillars and ethical values are violated by this action?
Professionalism, Integrity, Professional Skepticism
What quality must auditors maintain to ensure their judgements and decisions are free from biases or undue influence, allowing them to provide impartial assessments during audits?
Objectivity
The ends justify the means
Consequentialism
Which term describes the expectation for auditors to maintain integrity, objectivity, and competence, adhering to the ethical standards and values of the auditing profession?
Professionalism
Dr. Otero openly communicates the scope of the audit and clearly explains the audit procedures. She also updates stakeholders regularly about the audit process, any significant findings, and potential areas of concern. She presents the audit findings in a clear, concise, and understandable manner and is responsive to inquiries from stakeholders regarding the audit process and findings. What accounting principle is Dr. Otero exercising in this scenario?
Transparency