The Ethics Codes Of Uk

1928 Words Mar 4th, 2015 8 Pages
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It’s trust-worthy and reliable to have independent and unbiased auditors confirm that an organization’s claims about its financial position and the process behind these claims are true and independent. The most important element for the audit report and opinion should be free bias. In order to achieve this goal, auditors need to be objective. Auditor, as one part of the professional accountancy bodies, is required to obey the ethics codes, which ensure the auditor to be independent.

Furthermore, the ethics codes of UK utilize a principle-based framework approach to outline the circumstances and assess whether the appropriate safeguard can be carried out to mitigate the threats in order to achieve acceptable level of independence. There are three components for the approach. The first one is fundamental principle, which demands the integrity, objectivity, competence, performance and courtesy for the auditors. In this case, the key fundamental principle is independence, which is objectivity. Then, the second component for the approach is to identify and considerate the threats to independence. For this one, the auditor requires to consider conscientiously before the audit work, about the potential and actual threats that could disturb the issue of objective reports. Finally, the last principle is consideration of safeguards. When there are threats of independence, the auditor needs to implement appropriate safeguards to clear or assuage the thread to an acceptable and…

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