MAA303 Auditing: Analyzing Ethical Dilemmas in Financial Audits

This case study delves into several ethical and professional dilemmas encountered during auditing engagements. It examines scenarios including a client's inability to pay audit fees, an auditor's personal use of a client's property, and the acceptance of referral fees from non-audit clients. The analysis identifies threats to auditor independence, objectivity, and professional competence. Recommendations are provided to mitigate these threats, such as establishing clear engagement terms, implementing robust internal monitoring procedures, promoting compliance through disciplinary mechanisms, and ensuring transparency in referral fee arrangements. The study emphasizes the importance of adhering to ethical standards and maintaining auditor independence to ensure the integrity and reliability of financial audits. Desklib provides students access to similar solved assignments and past papers for enhanced learning.