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

Question

Quizplus · Accepted Answer

Ethical behavior requires auditors to maintain independence from their clients, which means their pay should not depend on the success of the client's business. This ensures that auditors are not influenced by the financial interests of the company they are auditing and can provide unbiased opinions on the accuracy of financial statements. The other choices are all unethical behaviors that violate professional standards and can lead to problems such as misrepresentation of financial information, conflicts of interest, and decreased public trust in the accounting profession.

Ethical Behavior Requires