190 likes | 380 Views
Modern Auditing: Assurance Services and the Integrity of Financial Reporting, 8 th Edition. William C. Boynton California Polytechnic State University at San Luis Obispo Raymond N. Johnson Portland State University. Chapter 3 – Professional Ethics. Chapter 3 Overview. Ethics and Morality.
E N D
Modern Auditing: Assurance Services and the Integrity of Financial Reporting, 8th Edition William C. Boynton California Polytechnic State University at San Luis Obispo Raymond N. Johnson Portland State University Chapter 3 – Professional Ethics
Ethics and Morality • General Ethics • Ethical Dilemma • Ethical Absolutists • Ethical Relativists • Professional Ethics • Commitment by profession • Ethical Principles and Rules of Conduct
AICPA Professional Ethics Division • Standard Setting • Ethics Enforcement • Technical Inquiry Services
Composition of The Code • Two Sections • Principles • Rules of Conduct • Pronouncements • Interpretations of the Rules of Conduct • Ethical Rulings
Ethical Principles • Responsibilities • The Public Interest • Integrity • Objectivity and Independence • Due Care • Scope and Nature of Services
Study Break • Which two of the following elements are member-adopted sections of the Code: • Principles • Ethical Rulings • Interpretations • Rules of Conduct A. Principles and D. Rules of Conduct
Study Break 2. Which ethical principle states that members should honor the public trust and demonstrate a commitment to professionalism? • Integrity • Public Interest • Due Care • Responsibilities B. Public Interest
Engagement-Based Approach • Covered Members • Prohibited Activities • Immediate Family Members • Close Relatives • Other Professionals and Their Immediate Family Members
Employment with an Attest Client • Employee becomes employed by client • Public Companies • Private Companies • Employee seeks employment with client
Other Independence Issues • Nonattest Services • Private Companies • Litigation • Unpaid Fees
State Boards and PCAOB • State Accountancy Statutes and Laws • Audit Firms of Public Companies
Enforcement of the Rules • Joint Ethics Enforcement Procedures (JEEP) • Joint Trial Board Procedures • Admonishment • Suspension • Expulsion • Automatic Disciplinary Provisions
Study Break 3. Which of the following is subject to enforcement under the Rules of Conduct? • Independence in Fact • Independence in Appearance B. Independence in Appearance
Study Break 4. Under the joint trial board procedures, which of the following is not a possible disciplinary action that could be taken: • Admonishment • Suspension for five years • Expulsion • Suspension for two years or less B. Suspension for five years