Ethical and professional Issues

I don’t believe that I have ever been asked this one before!

Ethical issues concern the morality of one’s actions whereas professional issues concern the expectations / rules / guidance given by the profession to its members – how to act in a professional way

Is that enough?

Well, yes, there is that distinct possibility of an inter-relationship between ethics and client retention.

Where the client wishes to pursue activities (or even simply a bit of creativity in recording of transactions) and the auditor disagrees with the client’s chosen course of action, the auditor is faced with a professional dilemma.

“Do I allow the client to continue and turn my own blind eye to the situation, but keep the client as a client?” or ……

“Do I disagree with the client’s chosen course of action on the grounds that that course is morally questionable, try to persuade the client to reverse the bad entries and put through acceptable entries and then, if the client refuses, qualify the audit opinion with detailed explanation for the qualification probably accompanied by an indication of unwillingness to stand for reelection (I doubt that the directors would have invited you to be stand!)?”

If this matter came to your attention early on in the financial year, you may have chosen to resign “with circumstances” or may even have been removed by members’ ordinary resolution (with special notice) at a general meeting held sometime in the period between annual general meetings.

However, in both of those cases, you will have the opportunity to attend a meeting of the company’s shareholders / members and to speak directly to those members (you have a statutory right to attend, speak and be heard at that meeting) explaining the circumstances that have led to your resignation / removal

Ok?

You’re welcome