Role of Ethics in Auditing: An Ethical Analysis

Name : ________________________________________________
Student ID : ____________________________________________
Proposed Research Title:
___Accounting and Auditing Ethics
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Client Organisation (if applicable)
Research Background
The aim of this study is to analyze role of ethics in auditing and develop ethical analysis for
emphasizing the significance of proper ethical decision-making during the auditing procedure. In financial
accounting, audit has been classified by self- governing assessment of justice by which enterprise’s
financial statements are presented as well as prepared by the supervisors. The audits are mainly designed
to assure reliability as well as accuracy in certain areas such as – accounting systems, legal compliance
and financial accounting. One of the vital activities of professional accountant across the globe is auditing to
set reliability as well as accountability of the given accounting information. In this context, ethics is the most
significant thing for an auditor as they are one who inspects accounting records as well as practices of the
organization. Several ethical issues for multinational companies arises owing to varying value system. The
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ethical audit enables the enterprise in establishing clear guidelines regarding limits of behavior that are
consistent worldwide (Kung and Huang 2013). It basically determines internal as well as external
consistency of the enterprise’s value systems. Moreover, it intends for transparency as well as
accountability towards stakeholders and control internally to meet the enterprise ethical objectives. This
study mainly considers various categories of the ethical theory as well as analyze developments towards
ethical audit. The different approaches for carrying out auditing ethics, including- reviewing all ethics
procedures as well as policies, monitoring work of ethics and so on.
Research Problem / Research Question
Research Problem
The profession of auditing has been facing rising ethical standards owing to corporate
scandals. The research problem for this study is to investigate level of auditor’s ethical reasoning
in the decision- making. Another issue of the research study is that the auditors of the few
organizations were not willing to provide the information about the ethical issues they face. The
information about the ethical programs that are documented and implemented by most of the
organizations could not be obtained accurately. The breaches of ethics program in the
organizations could not be properly investigated in this research study.
Research Question
The research questions that are highlighted in this study are –
 Why ethics is of huge significance in auditing and accounting?
 What the ways for adopting ethical audit?
 What are the ethical rules of the auditing profession?
 How auditing ethics helps the enterprises compete effectively at international level?
 What are the ethical problems related to auditing?
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