MODERN AUDITING 7th Edition. William C. Boynton California Polytechnic State University at San Luis Obispo Raymond N. Johnson Portland State University Walter G. Kell University of Michigan. Developed by: Dr. Raymond N. Johnson , CPA. John Wiley & Sons, Inc. Ethics and Morality.
William C. Boynton
California Polytechnic State University at San Luis Obispo
Raymond N. Johnson
Portland State University
Walter G. Kell
University of Michigan
Dr. Raymond N. Johnson, CPA
John Wiley & Sons, Inc.
General Ethics attempts to deal with ethical 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 must extend beyond moral principles. They include standards of behavior for a professional person that are designed for both practical and idealistic purposes.
In the Code, the 6 principles are identified as follows:
2. The Public Interest
4. Objectivity and Independence
5. Due Care
6. Scope and Nature of Services
Who are “Covered Persons/Members”?
Immediate family members of covered persons
Close relatives of covered persons
If a partner or a professional employee leaves the CPA firm and is subsequently employed by the client in a key position, independence will be impaired unless ALL of the following conditions are met.
The following non-audit services are prohibited:
Rule 101-3 indicates that before performing non-attest services, the member should establish an understanding with the client regarding:
General activities that impair independence
1. Board of Accountancy Enforcement Procedures
2. Disciplinary Provisions
b.Continuing professional education.
c.Revoke license to practice.