tailieunhanh - Lecture Auditing and assurance services in Australia: Chapter 3 - Grant Gay, Roger Simnett

This chapter outlines the nature and importance of ethics, and the responsibilities imposed on auditors by the profession through the code of professional ethics. One fundamental ethical requirement for an auditor is independence. This chapter explains the concept of independence and how it is supported by legislation and the ethical rules. | Chapter 3 Ethics, Independence and Corporate Governance 3- Copyright 2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett The Nature and Importance of Professional Ethics Ethics: Concerned with the requirements for the general well-being, prosperity, health and happiness of people. Requires knowledge of moral principles, and skills in applying them to problems and decisions. Learning Objective 1: 3- Copyright 2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Ethical rules The establishment of ethical codes and disciplinary rules does not necessarily create an ethical culture or ensure the moral integrity of employees. of the Joint Code of Professional Conduct (CPC) of ICAA and CPA Australia (from 1 July 2006 reference is to Section A of APES 110 “Code of Ethics for Profession Accountants” issued by the Accounting Professional and Ethical Standards Board - APESB) indicates that members are expected to comply with the spirit as well as the letter of the rules. Failure to observe expected standards can result in disciplinary procedures and sanctions. 3- Copyright 2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Ethical Theory Teleological ethics – deals with consequences or outcomes of actions generally, if benefits of proposed action outweighs costs, the decision is morally correct. Deontological ethics – based on duties and rights duties and rights set down in rules which must be followed. Virtue ethics – focus on personal qualities, such as the integrity of the decision-maker. Learning Objective 2: 3- Copyright 2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in | Chapter 3 Ethics, Independence and Corporate Governance 3- Copyright 2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett The Nature and Importance of Professional Ethics Ethics: Concerned with the requirements for the general well-being, prosperity, health and happiness of people. Requires knowledge of moral principles, and skills in applying them to problems and decisions. Learning Objective 1: 3- Copyright 2006 McGraw-Hill Australia Pty Ltd Revised PPTs t/a Auditing and Assurance Services in Australia 3e by Grant Gay and Roger Simnett Slides prepared by Roger Simnett Ethical rules The establishment of ethical codes and disciplinary rules does not necessarily create an ethical culture or ensure the moral integrity of employees. of the Joint Code of Professional Conduct (CPC) of ICAA and CPA Australia (from 1 July 2006 reference is to Section A of APES .