Is the Operation of Auditing Necessary? Essay

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[We need to understand that audit is about achieving customer satisfaction in order to gain repeat business and overall increase company revenue.]

What is business ethics? The ethics of a particular business can be diverse. Business ethics is the behavior that a business devotes to in its daily dealings with the world. Auditing is the analysis and inspection of the financial accounts/records whether or not a company has a qualified accountant and procedures of a firm or organization. This is necessary to gain a fair information on the company’s financial statements. With its auditing, potential investors and creditors can look at the financial statements to decide whether to invest in a business
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Managing for honor is far more than compliance, it also includes management self governance in which company’s employee ethics play a major role. The key aspect for employment is education, leadership, and accountability. These are the compliance strategies that are usually based upon externally established standards. In the corporate world, the key word “stakeholder” is considered a questionable term. The word stakeholder is used to describe stockholder and investors who are involved in accusation made by the firm. Stakeholder theory has become well known theme in the business/ethics and society literature. This term has developed more meaning not just in the business world but also in political implication because of the Labor Party in Great Britain, who has adopted this theory. To many economists the word “stakeholder” is known as the internal code which is used by many companies managers to justify their breaching of fiduciary duty to the owners of the companies. It is believed that a big benefaction comes from well studied case, field research of the firms that would be willing to engage us to help understand how managers overcome the ethical issues in the business world. Such ‘ethical audits’ would not only help clarify current ethical issues in business but would engage us to better understand the
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