Ethical Obligations and Decision-Making in Accounting 2nd Edition by Steven Mintz, Roselyn Morris

Exercise 17

Libby and Thorne studied the association between auditors’ virtue and professional judgment by asking members of the Canadian Institute of Chartered Accountants to rate the importance of a variety of virtues. The most important virtues identified were truthful, independent, objective, and has integrity. The authors note that the inclusion of these virtues in professional codes of conduct [such as the Principles of the AICPA Code of Professional Conduct] may account for their perceived importance. 38 Explain how these virtues relate to an auditors’ intention to make ethical decisions.

Step 1 of 2

Ethics:

Ethics is the set of some moral values and principal that differentiate right and wrong morally.

Audit:

The audit is the process of checking the financial statements of a company `to ensure that it is 100% authentic and free from any kind of bias or fraud.