The Code of Professional Conduct for Auditors

1516 WordsFeb 2, 20186 Pages
All organizations have a code of conduct, whether they have established them or not. This code creates a set of expectations and builds a framework to guide their members in all actions and operations. The code of professional conduct for auditors is one of extreme importance. The six main principals include the following: responsibilities, the public interest, professional due care, objectivity and indepdence, integrity, and the scope and nature of services. The manner in which an auditor performs and incorporates these six principals in his or her duties has a great effect on how they are viewed by clients, colleagues, and society, and any discovered disloyal actions results in costly punishments. Section 52 of the code of conduct, created by AICPA, states that the auditor must carry out their responsibilities as professionals. Although this seems like a simple and straightforward requirement, one would be quite surprised to learn how some auditors have interpreted this while performing audits. One case involves the nutrition company Herbalife and former KPMG audit partner Scott London. Scott London, an auditor of 30 years, leaked insider trading information to a friend, Bryan Shaw, who was in need of financial help. Shaw was able to use London's confidential information to earn over 1 million dollars. He thought he was helping a friend, but in the end he put his career, reputation and life at stake. Recently, London was sentenced to prison for fourteen
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