Audit Ethical Decision Making and Professional Judgement

Types of ethical transgressions

Illegal

Incongruent: not aligned with company policy (company conduct, AICPA code of conduct)

Irresponsible: in conflict with data or reason (often to further personal gain)

Immoral: inconsistent with the code of human conduct or expected behavioral norms

Don’t hold decisions to the standard of being illegal (just because it’s not illegal, doesn’t mean it’s ok)

Types of transgressions

Lavish/inappropriate gifts (not all gifts, most companies will have own guidance) (gov employees cannot accept anything, not even coffee)

Personal behavior at work site

Any disclosure of confidential info (purposeful or accidental)

Personal integrity

Appropriate representation of facts and data

Preferential treatment in exchange for business opps

Example of Will worried about how a previous high school drunk driving conviction after high school will hurt his job chances

He should report it because it would be worse if his firm found out somewhere else. There are legal protections and a criminal conviction isn’t an automatic no (circumstances are taken into consideration), but lying on the application is an indicator of a lack of integrity

Example with Lisa on whether she should report the fact she has been receiving a stipend that she no longer qualifies for. It’s been 9 months, should she still report it

Yes she should, it would be better for her to report it instead of it being discovered