CPA Auditing and Attestation (AUD)

Certified Public Accountant Auditing and Attestation examination.

Audit FundamentalsAudit Planning and Risk AssessmentInternal Controls
Audit Evidence and SamplingProfessional Ethics and IndependenceAudit Reports and Opinions
Auditing in Small BusinessesTechnology in AuditingFraud Detection and Prevention
Effective Multiple-Choice StrategiesTime Management on Exam DayMastering Simulations
Audit FundamentalsAudit Planning and R...Internal ControlsAudit Evidence and S...Professional Ethics ...Audit Reports and Op...Auditing in Small Bu...Technology in Auditi...Fraud Detection and ...Effective Multiple-C...Time Management on E...Mastering Simulation...
Advanced Topics

Professional Ethics and Independence

Why Ethics and Independence Matter

Auditors must follow strict ethical standards to maintain public trust. Independence ensures an auditor’s work is unbiased and objective.

Key Principles

  • Integrity: Be honest and straightforward.
  • Objectivity: Avoid bias, conflict of interest, or undue influence.
  • Confidentiality: Respect client privacy and keep information secret.
  • Professional Behavior: Follow laws, regulations, and professional standards.

Independence in Fact and Appearance

Auditors must be independent both in reality and in how they are perceived by others. Even a hint of bias can damage credibility.

Real-World Application

Failing to uphold ethics can lead to legal trouble, lost licenses, and broken trust with the public.

Examples

  • An auditor declines a gift from a client to maintain independence.

  • A CPA refuses to audit a relative’s business due to a conflict of interest.

In a Nutshell

Ethics and independence are core to the credibility of the audit profession.

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Audit Reports and Opinions