The Code of Professional Conduct Is Very Important for the Auditing

Essay

The Code of Professional Conduct is very important for the auditing profession.The AICPA,state CPA boards,and other professional organizations spend a great deal of time and effort implementing and reinforcing the ethical standards as well as penalizing those who violate the ethical standards.
Required:
A. If the profession is to maintain the public trust and confidence, it must have standards that are visible to the public, and the profession must demonstrate an adherence to those standards. Without a set of minimum ethical standards, the profession might lose creditability in its opinions provided to financial statement users.
A. Why is the Code of Professional Conduct important to the profession?
B. In today's business environment, it may be more difficult to adhere to ethical standards than ever before. Many more investment options including pensions exist. It may not always be clear what some of the funds are investing in and the extent of these investments. In addition, as businesses become more complex, integrate more technology, and engage in more global business practices, it becomes more difficult for accountants to acquire the knowledge and skills required to meet the standard of competence. As the number of standards and the complexity increase, the adherence to standards becomes more difficult. Also, as business moves more quickly and corporations attempt to meet market expectations, the pressures placed on auditors to perform audits faster and achieve results in line with management expectations become greater.
B. Many professionals believe that in today's business environment it is more difficult to adhere to the Code of Professional Conduct than ever before. Why might this be true?