Professional Ethics of Auditing in Term Paper

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For example, Gilbert will be pressured to conduct an audit favorable to a client because this is in the best interest of his partnership with Bradley. This potential for bias is heightened with the fifty-fifty stock split. Thus, both the partnership with Bradley and the financial arrangement are unethical in that they create a potential for bias in violation of the Code of Ethics.

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Finally, Gilbert has an ethical obligation to maintain his client's confidences. Although Gilbert has a legal obligation to disclose of Goodtime Company's failure to disclose their lien, this must be done in the form of the audit report. Telling his business partner without first confronting his client is in violation of Gilbert's ethical duty to preserve the confidences of his client......

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