Seven. The Auditing Function

  1. Ronald Duska1,
  2. Brenda Shay Duska2 and
  3. Julie Ragatz1

Published Online: 20 APR 2011

DOI: 10.1002/9781444395907.ch7

Accounting Ethics, Second Edition

Accounting Ethics, Second Edition

How to Cite

Duska, R., Duska, B. S. and Ragatz, J. (2011) The Auditing Function, in Accounting Ethics, Second Edition, Wiley-Blackwell, Oxford, UK. doi: 10.1002/9781444395907.ch7

Author Information

  1. 1

    The Center for Ethics in Financial Services, The American College, USA

  2. 2

    Del Pizzo & Associates, USA

Publication History

  1. Published Online: 20 APR 2011
  2. Published Print: 11 MAR 2011

Book Series:

  1. Foundations of Business Ethics

Book Series Editors:

  1. W. Michael Hoffman and
  2. Robert E. Frederick

ISBN Information

Print ISBN: 9781405196130

Online ISBN: 9781444395907

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Keywords:

  • the auditing function;
  • case of KPMG and New Century - examples, of serious ethical pressures in accounting professions;
  • financial markets and economic systems - society carving out a role for independent auditors;
  • ethics of public accounting - and responsibilities of independent auditors;
  • free market economy, and base transactions and decisions - truthful and accurate information;
  • trust, and application of Immanuel Kant's - first categorical imperative, the universalizability principle;
  • cooperation, vital and trust - a precondition of cooperation;
  • universalizing misrepresentation, besides leading - to mistrust, chaos, and inefficiencies in the market, making the act of misrepresentation impossible;
  • auditor's responsibility to the public - attesting to fairness of financial statements, imbuing accountants with special responsibilities to the public;
  • professional skepticism, independence - being crucial, auditor's responsibility to maintain professional skepticism

Summary

This chapter contains sections titled:

  • The Ethics of Public Accounting

  • Trust

  • The Auditor's Responsibility to the Public

  • The Auditor's Basic Responsibilities

  • Independence

  • Independence Risk

  • Professional Skepticism

  • Reasonable Assurance