In this chapter, the learning objectives are: Know the definitions and general importance of ethics and professionalism, be able to explain three basic theories of ethical behavior, understand how to deal with ethical challenges through an example situation. | Chapter Nineteen Professional Ethics, Independence, and Quality Control Ethics and Professional Behaviour Ethics Professionalism Refers to a system or code of conduct based on moral duties and obligations that indicate how an individual should behave in society. Refers to the conduct, aims, or qualities that characterize or mark a profession or professional person. Theories of Ethical Behaviour Utilitarianism Rights-Based Approach Justice-Based Approach Recognizes that decision making involves trade-offs between the benefits and burdens of alternative actions and focuses on the consequences and individuals affected. Assumes that individuals have certain rights and other individuals have a duty to respect those rights when making decisions. Is concerned with issues such as equity, fairness and impartiality. Development of Moral Judgment Conceptual Framework Approach to Independence Conceptual Framework Approach to Independence The definitions of independence in the frameworks acknowledge that independence only indirectly affects the ultimate goal of auditor objectivity, . to make unbiased audit decisions. Independence is considered a relatively observable trait of an auditor that should be correlated with the relatively unobservable trait of objectivity. Consequently, auditor independence is viewed as the main mean to ensure and demonstrate auditor objectivity and independence has therefore been in regulatory focus. Independence of mind relates to the fact of independence, . if the auditor actually behaves without being affected by interests than may impair objectivity. Independence in appearance relates to perception of independence, . if third parties perceive that auditor interests that may impair objectivity do not exist. Conceptual Framework Approach to Independence Threats to auditor independence are pressures and other factors that impair or are perceived to impair an auditor’s objectivity. Safeguards to auditor independence are controls that . | Chapter Nineteen Professional Ethics, Independence, and Quality Control Ethics and Professional Behaviour Ethics Professionalism Refers to a system or code of conduct based on moral duties and obligations that indicate how an individual should behave in society. Refers to the conduct, aims, or qualities that characterize or mark a profession or professional person. Theories of Ethical Behaviour Utilitarianism Rights-Based Approach Justice-Based Approach Recognizes that decision making involves trade-offs between the benefits and burdens of alternative actions and focuses on the consequences and individuals affected. Assumes that individuals have certain rights and other individuals have a duty to respect those rights when making decisions. Is concerned with issues such as equity, fairness and impartiality. Development of Moral Judgment Conceptual Framework Approach to Independence Conceptual Framework Approach to Independence The definitions of independence in the frameworks .
