What is Integrity and objectivity?
In short
The American Institute of Certified Public Accountants' Code requires members to maintain integrity and objectivity, be free of conflicts of interest, not knowingly misrepresent facts and not subordinate their judgment to others.
Key takeaways
- The rule applies to all members, in public practice and in business.
- Conflicts of interest may be acceptable with disclosure and consent, if safeguards reduce threats to an acceptable level.
- Pressure from a supervisor to misstate records must be resisted and escalated.
Where it's tested
AUD: Professional Ethics & Independence — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
An audit senior on the engagement team owns 10 shares of the audit client's common stock, worth approximately $300. What is the effect on independence?