Code of Ethics in the perspective of Audit
In auditing AICPA has code of professional conduct or ethics for its members. These activities constitute an important part of the profession’s multilevel regulatory framework. Ethics is derived from the Greek word ‘ethos’ means ‘character’. Another name for ethics is morality which comes from the Latin ‘mores’ means ‘custom’. In the words of AICPA-
“Auditing is a process by which competent, independent people accumulates and evaluate evidence about quantifiable information related to a specific economic entity for the purpose of determining and reporting on the degree of correspondence between the quantifiable information and established criteria.”
Ethics in auditing can be described in two ways:
General ethics: General ethics attempts to deal with these questions by defining what is good for the individual and society and by trying to establish the nature of obligations or duties that individuals owe themselves and each other.
Professional ethics: Professional ethics must extent bound moral principles. They include standards of behavior for professional people that are designed for both practical and idealistic purposes.
Ethics focus on the right and wrong of human behavior thus ethics deals with questions how people act towards one another.