ACCT 497 Lecture Notes - Lecture 5: Kpmg, Contingent Fee, Human Resources
1 Feb 2017
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Philosophical principles in ethics: 1) the imperative principle, 2) the principle of utilitarianism. Virtue ethics: setting self-focused standards for instilling intra-personal excellence and building character: Virtues such as honesty, openness, integrity, etc. Behavior you would be proud to have widely reported. Responsibilities - exercise sensitive professional and moral judgment. Public interest - honor the public trust. Integrity - perform responsibilities with the highest sense of integrity. Objectivity - impartial, unbiased, and independent, free of conflicts of interest and independent in fact and appearance. Due care - diligence, competence, thorough, prompt. Scope and nature of services - observe the principles when considering the scope and nature of services provided. Rule 101: independence: a member in public practice shall be independent in the performance of professional services as required by standards promulgated by bodies designated by council. Threats to an auditor"s independence: familiarity threat. Cpas having a close or longstanding relationship with a client. Example: family relationship: adverse interest threat.
