Pages

Friday, October 11, 2013

Auditing (3rd) chapter : Professional ethics



Q. What are the principles or standards followed by AICPA ‘s white auditing.
Ans :
                The principle following by AICPA are given below:
01. General standard :
a)     The auditor will be sufficient educated and skillful.
b)     The auditor should be free from male practice and should be honest.
c)     The auditor shall prepare the audit report in skillful mind and proper care.

02. Standard of field work :
a)     For preparing good, audit report the auditor should prepare an audit program .The main auditor inspect the audit work of the whole audit team.
b)     The auditor, should cheek properly the internal control and internal audit.
c)     The auditor should prepare audit report for judgment, inspection and enquiry. The auditor accepts the most acceptable document.
03. Standard of reporting : 
                                                a)     The auditor should inspect the report has been made by                                                  following generally accepted accounting principles.
b)     The report has been prepared by some way by year to year.
c)     The information included in the financial statement should be true and fair.
d)     The auditor should give the proper report about the financial information.

Q. What is Ethics? What are the needs for ethics.

Ans :
Ethics can be define broadly as a ,set of moral principles or values although we or may not have consider them to implicit .
Needs for ethics :
                                1.      Ethics is necessary for a society to function it in on orderly manner.                    It    can be argued that ethics is a glue that holds the society together.
2.      The need for ethics in society is sufficiently important that most commonly held ethical is value are incorporated into law.

So, it can be said that, ethics is an important and valuable instrument of society as well as business.

Q . Describe the ethical principle.
  Ans:
                  The following are the six ethical principles i.e. core ethical value. That the washperson institute associates with ethical behavior   .

1.      Trustworthiness:     Trustworthiness includes honesty ,integrity .reliability and loyalty.

2.       Respects:   It includes nation such as civility ,dignity tokrence and acceptance.

3.      Responsibility:   Responsibility means being accountable for one action and exercising restraint .It also means presuming excellence.

4.      Fairness and justice:    Fairness and justice means issue of equally impartiality, proportionately openness and due process. Fair treatment means that similarly situations are handed consistently.

5.      Caring: Caring means being genuinely concerned for the welfare of others and includes and showing benevolence.

6.      Citizenship : It includes obeying laws performing one fair ,share to make society work ,including activities as voting ,serving on juries and conserving resources

So, these are the principles of ethics that are important element to operate a society and business.

Q. What is Ethical dilemma?

Ans: An ethical dilemma is a situation that a personal faces in which a decision must be made about the appropriate behavior .

1.      Auditors accounts and in other business people face many ethical dilemma in their business career.

2.      Dealing with a client who threatens to seek a new auditor unless an qualified is inappropriate.           

Q. Write down the AICP’S ethical principles or Identify and state the essence of the six ethical principles.

Ans :  There are six ethical principles ,these are as follows :

1.      Responsibility:  In carrying out their responsibility as professional member should exercise sensitive, profession and moral judgments in all their activities.

2.      The public interest: Member should accept the obligation to act in a way that will serve the public interest, owner the public trust and demonstrate commitment to professionalism.

3.      Integrity: To maintain and brooder public confidence member should perform all professional responsibilities with the highest scene of integrity.

4.      Objective and independence:   A member in public practice should maintain objective and should be independent in fact an appearance when providing auditing and other attestation service.

5.      Due core: A member should observe the professions technical and ethical standard and discharged professional responsibility to the of the number ability.

6.      Scope of nature of service:  A member in public practice should observe the principles of the code of professional inducts in determining the scope and nature of service to be provided.        

Q. Write down the rules of conduct of professional ethical .

Ans: The rules of conduct of professional ethical

1.      Independence:  A member in public practice shall be independent in the performance of profession services as required by standees promulgated by bodies designated by council.

2.      Integrity and objective: In the performance of any professional service a member shall maintain objective and integrity and shell be free of conflicts of interest and shall not knowing misrepresent facts or subordinate his or her judgment to her.

3.      Compliance with standards:  A member who performs auditing .review compilation, management consulting .tax or other professional service shall comply with standards promulgated by bodies designated by council.

4.      Accounting principles: A member shell not express on opinion or state affirmatively that the financial statement or others financial data of any entity are presented in conformity with generally accepted accounting principles.

5.      Contingent fees : A member in public practice shell  not perform for a contingent fee any professional service for ,or receive such a fee form ,a client for whom the member or the member firm performs.

6.      Acts discreditable: A member shall not commit an .act discreditable to the profession.

7.      Advertising and other form of solicitation: A member in public practice shall not seek to obtain client by advertising or other forms of solicitation in a manner that is false .misleading or deceptive.

8.      The form of organization and name: A member may practice public accounting only in a form of organization permitted by state law of regulation whose characteristics conform to resonation of council.     
 
          

0 comments:

Post a Comment