In this chapter, we discuss the study by Libby and Thorne of the association between auditors’ virtue and professional judgment by asking members of the Canadian Institute of Chartered Accountants to rate the importance of a variety of virtues. The most important virtues identified were truthful, independent, objective, and having integrity. The authors note that the inclusion of these virtues in professional codes of conduct (such as the Principles of the AICPA Code of Professional Conduct) may account for their perceived importance. Explain how these virtues relate to an auditor’s intention to make ethical decisions.
Answer to relevant QuestionsInterpretation 102-4 of the AICPA Code of Professional Conduct that was discussed in Chapter 1 provides that a CPA should not knowingly misrepresent facts or subordinate her judgment when performing professional services. ...1. Consider Kohlberg’s six stages of moral development. What would Cindie do and why if she re as one date ach of the six stages?2. Assume that Cindie approached Lyndell about her concerns. Lyndell tells Cindie that he has ...1. How do you assess blame for the fraud? That is, to what extent was it caused by Finn’s willingness to go along with the actions of Monus? What about Shapira’s lax oversight. Should the blame all go to Monus? What role ...COSO explains the importance of the control environment to internal controls by stating it sets the tone of an organization, influencing the control consciousness of its people. It is the foundation for all aspects of ...In October 2010 it was reported that Cheryl Eckard, a quality-assurance manager at the pharmaceutical company Glaxo-SmithKline who had blown the whistle on the safety of products made in its Puerto Rico plant, had been fired ...
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