PROFESSIONAL ETHICS

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PROFESSIONAL ETHICS

• CHAPTER 3

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ETHICS

• A SYSTEM OR CODE OF CONDUCT BASED ON UNIVERSAL
  MORAL DUTIES AND OBLIGATIONS WHICH INDICATE HOW
  ONE SHOULD BEHAVE. ASSISTS IN THE ABILITY TO
  DISTINGUISH GOOD FROM EVIL, RIGHT FROM WRONG.

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SYSTEMS OF ETHICAL DECISION MAKING

• EGOISM
• ALL PEOPLE OUGHT TO ACT IN THEIR PERCEIVED BEST
  INTERESTS
• GOLDEN RULE
• DO UNTO OTHERS
• SITUATION ETHICS
• OBLIGATION IS RELATIVE TO SITUATION

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• UTILITARIANISM
• DECISIONS SHOULD MAXIMIZE GOOD AND MINIMIZE HARMS
• ACT UTILITARIANISM
• RULE UTILITARIANISM
• UTILITARIAN CALCULUS
• DEONTOLOGY/ABSOLUTE DUTIES
• SYSTEM OF ETHICAL LAWS
• THEORY OF JUSTICE
• JUSTICE OF PROCESS
• JUSTICE OF OUTCOME

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• VIRTUE ETHICS
• ARISTOTLE
• QUALITIES OF CHARACTER WHICH REQUIRE YOU TO DO
  THE RIGHT THING
• RIGHT IS DEFINED AS GOOD
• GOOD IS DEFINED WITHIN PRACTICES AS THEY FIT
  INTO SOCIETY

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ETHICAL FALLACIES

• IF ITS LEGAL, ITS ETHICAL
• TECHNICAL COMPLIANCE WITH LAW SATISFIES MORAL
  OBLIGATION
• WHITE LIE FALLACY
• SOME LIES ARE NECESSARY TO PROTECT FEELINGS
• HERD ETHICS
• EVERYONE IS DOING IT
• ETHICAL DOUBLE STANDARD
• WORKPLACE VS PERSONAL

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REBELLIOUS ETHICS AND ALBERT SPEER

• ALBERT SPEER
• HITLERS ARCHTECT
• RESPECTABLE, PROFESSIONAL, SUCCESSFUL
• PURE TECHNICIAN
• TECHNOLOGY AND ACCOUNTABILITY
• REBELLIOUS ETHICS
• NEED TO DISTANCE OURSELVES FROM PROFESSIONAL
  ROLES
• CHALLENGE REQUIREMENTS

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• THE FAILED ARCHITECT
• SEPARATE COMMUNITY OF ARCHITECTURE
• FAILURE TO REFLECT
• CORRUPTION OF PROFESSION
• WHO REBELS?
• VARIETY OF PERSPECTIVES
• CULTURAL AND ROLE-BOUND
• MASTER STORIES

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CODE OF PROFESSIONAL CONDUCT

• PRINCIPLES
• RESPONSIBILITIES
• PUBLIC INTEREST
• INTEGRITY
• OBJECTIVITY AND INDEPENDENCE
• DUE CARE
• SCOPE AND NATURE OF SERVICES

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• RULES
• 101 - INDPENDENCE
• IN FACT
• MENTAL QUALITY OF BEING WITHOUT BIAS
• GAAS STANDARD
• YOU JUDGE
• IN APPEARANCE
• PERCEPTION OF PARTIES OUTSIDE AUDIT
• AVOIDANCE OF CONFLICT OF INTEREST SITUATIONS
  DEFINED
• CODE OF CONDUCT
• PROBLEMS
• EMPLOYMENT
• SCOPE OF SERVICES
• MARKETING ORIENTATION

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CONFLICTS OF INTEREST

• A PERSON HAS A CONFLICT OF INTEREST IF a) THEY
  ARE IN A RELATIONSHIP WITH ANOTHER REQUIRING THEM
  TO EXERCISE JUDGMENT IN THAT OTHERS SERVICE AND
  b) THEY HAVE AN INTEREST TENDING TO INTERFERE
  WITH THE PROPER EXERCISE OF JUDGMENT IN THAT
  RELATIONSHIP

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• 203 - ACCOUNTING PRINCIPLES
• A MEMBER SHALL NOT EXPRESS AN OPINION THAT THE
  FINANCIAL STATEMENTS ARE PRESENTED IN CONFORMITY
  WITH GAAP, IF THEY KNOW THAT SUCH STATEMENTS
  CONTAIN ANY MATERIAL DEPARTURE
• 203.1
• STRONG PRESUMPTION THAT GAAP RESULTS IN A FAIR
  PRESENTATION
• IN UNUSUAL CIRCUMSTANCES, GAAP MAY MISLEAD
• AUDITOR MAY EXPRESS CLEAN OPINION IF, IN
  JUDGMENT, DEPARTURE IS JUSTIFIRD TO KEEP
  STATEMENTS FROM BEING MISLEADING

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• 301 - CONFIDENTIAL CLIENT INFORMATION
• A MEMBER IN PUBLIC PRACTICE SHALL NOR DISCLOSE
  ANY CONFIDENTIAL CLIENT INFORMATION WITHOUT
  SPECIFIC CONSENT OF CLIENT
• EXCEPTIONS
• PROBLEMS
• CONFIDENTIAL INFORMATION IS NOT DEFINED
• VIOLATIONS OF LAW
• INFORMATION USEFUL TO OTHER AUDITORS WITHIN FIRM

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• 302 - CONTINGENT FEES
• A MEMBER IN PUBLIC PRACTICE SHALL NOT
• PERFORM FOR A CONTINGENT FEE ANY PROFESSIONAL
  SERVICE FROM A CLIENT IF
• AUDIT OR REVIEW OF FINANCIAL STATEMENTS
• 400 - RESPONSIBLITIES TO COLLEAGUES
• NONE
• 501 - ACTS DISCREDITABLE
• A MEMBER SHALL NOT COMMIT AN ACT DISCREDITABLE TO
  THE PROFESSION
• 501.1 RETENTION OF CLIENT RECORDS
• 501.2 DISCRIMINATION AND HARASSMENT
• 501.3 FAILURE TO FOLLOW STANDARDS IN GOVERNMENT
  AUDITS
• 501.4 NEGLIGENCE

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• 503 - COMMISSIONS AND REFERRAL FEES
• 503.A - PROHIBITED COMMISSIONS
• A MEMBER SHALL NOT FOR A COMMISSION RECOMMEND OR
  REFER TO A CLIENT ANY PRODUCT OR SERVICE IF THAT
  MEMBER PERFORMS AN AUDIT, REVIEW, ETC