Ethical Necessary For Certified Public Accountants

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Ethical behavior is a necessary requirement for professionals for purposes of maintaining public confidence on their profession and the services they offer. Certified Public Accountants have similar ethical requirements to those found in other professions. There is a need for all professionals to be responsible, competent and provide services with great professional care. Since certified public accountants have a responsibility to users of financial statements, it is necessary for auditors to be independent both in appearance and fact. An auditor should be capable of upholding an impartial attitude throughout the auditing process and gain the faith and confidence of others on his or her independence. It is therefore, necessary for auditors …show more content…
(2011) argue that financial markets are poised to work well when the shareholders have a “true picture” of the financial statements of a company. Auditors ought to maintain some distance between them and their clients to preserve independence in appearance. A familiar and friendly working relationship between an auditor and client is likely to raise some ethical issues in terms of the independence of their actions during the auditing process. In such a situation, it is possible for the client to unduly influence the auditor thereby raising questions regarding the objectivity, integrity and capability of using professional skepticism (William, 2003, p.444). It is true that the auditor-client relationship could make the audit more effective and efficient since the auditor could be having prior knowledge concerning the operations of the company, past transactions, process, personnel and the systems of the company. However, the assessment of the independence of an auditor in most cases lies on the interpretation of the public, so most often than not the audit report is likely to be disputed or lack integrity. It is therefore important for the auditors demonstrate an ethical behavior in dealing with their clients to instill the confidence and integrity of their audit …show more content…
The third parties therefore rely on the independence of auditors in assessment. It is evident that the public confidence on public on entities and financial markets parts depends on the credibility of the audit reports availed by the auditors. In situations whereby the independence of auditors is compromised, the financial statements lack credibility, objectivity, integrity and the confidence of both the public and third parties who intend to use the audit report. Ensuring auditor independence therefore plays a crucial role in validating financial statements in both the public and private sectors thereby the need for acting

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