Government information, resources, and positions should not be used for the auditors personal gain

The five principles below are outlined by GAGAS to ensure that the auditor is serving the public interest while conducting their work with integrity and objectivity. The five ethical principles are:

1) Serving the public interest – The auditor should conduct their work with the public’s best interest in mind. Remember, you are a key line of defense in protecting the capital markets from error & fraud in a company’s financial statements!

2) Integrity – The auditor should conduct their work with an objective attitude and provide an anecdotal report that is considered nonpartisan and nonideological with regard to the audited entities and users of the audit report.

3) Objectivity – Will include independence of mind and appearance when providing audit reports. Furthermore, the audit work conducted should be done with an attitude of impartiality, and free from conflicts of interest (i.e. threats to independence like financial interests).

4) Proper use of government information, resources, and position – Government information, resources, and positions are to be used for official purposes and not inappropriately for the auditor’s personal gain or in a manner contrary to law or detrimental to the legitimate interests of the audited entity or the audit organization. This concept includes the proper handling of sensitive or classified information or resources.

5) Professional behavior – The auditor should act ethically and follow all professional standards and not be in put a position where the auditor’s credibility can be questioned.

36.One of the GAO’s ethical principles described in the Yellow Book stresses thata.Government employees may not accept gifts under any circumstancesb.Government information, resources, and positions should not be used for the auditor’s personalgainc.Auditors may use government resources if the proper requisition forms are completedbeforehandd.Auditors should not use personal email accounts for government-related communicationsb.Government information, resources, and positions should not be used for the auditor’spersonal gain

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The Legal Environment of Business: Text and Cases

Cross/Miller

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37.Department of Labor (DOL) independence rules apply to

38. In which way do DOL independence rules differ from the American Institute of Certified PublicAccountants rules?

39.Which statement most accurately describes the FDIC’s auditor independence requirements?

40. Rocky Point Brewery (RPB) filed an initial public offering in January 2016. RPB engaged Olsen &Alain, CPAs (O&A) in 2013 to keep the books and prepare monthly and annual financialstatements (while the company was privately-held), and terminated those services in December2015. Under SEC and PCAOB rules, could RPB engage O&A to be their auditors now that it is apublic company?a.Yes, because the prohibited non-audit services were performed before the period of professionalengagementb.Yes, but only if O&A rescinds any indemnification language existing in their non-auditengagement lettersc.No, because the prohibited non-audit services were performed during the period covered by thefinancial statementsd.No, but only if the fees O&A received from these engagements exceeded five percent of thefirm’s annual revenuesc.No, because the prohibited non-audit services were performed during the period covered bythe financial statements

What are the ethical requirements of auditors?

What are the ethical principles governing the auditor's professional responsibilities?

What are the five ethical principles the GAO's Yellow Book stresses?

Which statement best describes one of the ethical principles in GAO's Yellow Book?