Professional ethics – two words which are central to our profession. How many times do you see auditors in the firing line because of claims that professional ethics have been breached? asks Steve Collings.
Disciplinary pages of various professional bodies are regularly littered with proceedings taken against practitioners because they have failed to comply with professional ethics, such as levels of fees or honesty and integrity.
In the world of auditing there are five ethical standards which auditors must adhere to and this article will recap on the fundamental aspects of these five standards which are:
- ES 1 Integrity, objectivity and independence
- ES 2 Financial, business, employment and personal relationships
- ES 3 Long association with the audit engagement
- ES 4 Fees, remuneration and evaluation policies, litigation, gifts and hospitality
- ES 5 Non-audit services provided to audit clients