Ethical behavior requires that:
A)Auditors' pay not depend on the success of the client's business.
B)Auditors invest in businesses they audit.
C)Analysts report information favorable to their companies.
D)Managers use accounting information to benefit themselves.
E)Auditors' pay depends on the success of the client's business.

Question

Quizplus · Accepted Answer

Auditors' pay should not depend on the success of the client's business as it creates a conflict of interest and may lead to unethical behavior. Auditors should remain independent and objective in their assessments and recommendations. Investing in businesses they audit would also create a conflict of interest and may compromise their professional judgment. Reporting information favorable to their companies or using accounting information to benefit themselves would violate ethical principles of honesty and integrity.

Ethical Behavior Requires That