Question 1;

What does professional ethic mean to an auditor?

proffesional ethics are principles that governs the behaviour of a person or group in a business
environment . like values professional ethics provide rules on how a person should act towards
other peoples and institutions in such an environment it also consists of IFAC and AICPA code
of professional ethical conduct.
professional ethics include the following,
1] Intergrity , objectivity and independence
2] Financial , business employment and personal relationship
3] Long association with the audit engagement
4] Fees , remuneration and evaluation policies litigation , gift, and hospitality
5] Non -audit services provided to audit clients.
An auditor is a person authorized to review and verify the accuracy of financial records and
ensure that companies comply with tax laws while Audit is the examination or inspection of
various books of accounts by auditor followed by physical checking of inventory to make sure
that all department are following documents system of recording transaction.
Proffesional ethic to an auditor means that it enables an auditor to perform their duties and
responsibilities and to attain the highest levels of performance by the ethical requirements
generally to meet the public interest and maintain the reputation of the accounting proffesion.
Professional ethics refers to the professional accepted standards of personal and business
behavior, value and guiding principle like values, professional ethics provide rules on how
person should at towards other peoples and institutions in such an environment. Also it
encompasses the personal organizational and corporate standards of behavior expected of
professional. It consists codes of professional ethics; IFAC code of ethics for professional
integrity and conviviality and AICPA code of professional conduct.

Question 2;
List and explain the professional ethics that guides auditor
Professional ethics refers to the professional accepted standards of personal and business
behavior, value and guiding principle like values, professional ethics provide rules on how
person should at towards other peoples and institutions in such an environment. Also it
encompasses the personal organizational and corporate standards of behavior expected of
professional. It consists codes of professional ethics; IFAC code of ethics for professional
integrity and conviviality and AICPA code of professional conduct.
Proffesional ethics that guides auditor includes;

-Independence, auditor should not give unbiased opinions unless their independent of all
the parties involved. Not only must the auditors be independent in facts and attitude of mind but
they must be seen to be independent
-Objectivity, auditor should not allow bias, conflict of interest or undue influence of
others to override professional business and judgement.
`Professional behaviour A professional accountant should comply with relevant laws and
regulation and should avoid any action that discredits the professional
-Awareness, must be aware of and comply to the standard, legal requirement, rules and
professional ethics.
-Professional Competence, thoroughly trained and proven their competence, auditors
must be tactfulness.
-Integrity, a good auditor is guided with honest, discretion and tactfulness.
`confidentiality A professional accountant should respect confidentiality of information
and acquqred as the results of business

-Long association with the audit engagement – so as to verify the easy accessibility of
positive relationship among auditing firms.
- Fees , remuneration and evaluation policies litigation , gift, and hospitality

Question 3;
Difference between auditor and accountant?
 ACCOUNTANT
Is usually an employee of the
company for which they work
and the work done by
accountant is done on daily
basis
Accountant will create the
financial statement for the
company
Work done by accountant is
governed by
INTERNATIONAL
ACCOUNTING
STANDARD
Need not necessarily certified
It is his/her responsibility to
detect errors and frauds
Accountant are guided by
accounting standards and
guidelines
Accountant are appointed by
management of the company
Does not have to prepare
accounts. He prepare a final
accounts report
Accountant can be removed
by the management
Question 4;
Difference between auditing and accounting?
ACCOUNTING
Determination of financial
position, profitability and
performance.
Governed by accounting
standards with some degree
of discretion.
AUDITORS
Is responsible for reviewing the
work of the accountant on a
quarterly or annual basis, and
is often hired from an outside
firm to do so
Auditor will look the financial
statement over to make sure
they are accurate
WORK DONE BY
AUDITORS IS REGULATED
BY AUDITING
STANDARDS
He/she must be certified
He/she has no responsibility
for detection of frauds and
errors
Guided by auditing standards
guidelines.
Appointed by the shareholders
of the company or regulator
Prepares a report after his audit
which is a mandatory.
Auditor can be removed by the
shareholders as per Companies
Act Section 160[1] to [4]
AUDITING
To add credibility to the
financial statement and report
of the company
Governed by standards on
auditing and does not provide
much flexibility.
 Accounting is performed by
accountant
Accounting is carried out by
an internal employee of the
company
Auditing is performed by
general qualified auditors.
Auditing id carried by
external person or
independent agency.

Accounting is to accurately Auditing is to verify the

record and present all
financial transaction and
statement
accuracy and reliability of the
financial statement and to
judge whether the financial
statement provide a true fair
view

Question 5;
What does it mean by the saying that an auditor must be independent?
Auditor’s independent refers to the independence of the internal or external auditors from
parties that may have a financial interest in the business being audited. Independent auditor is
typically used to avoid conflict of interest and to ensure the integrity of performing an audit . the
auditor should be independent from the client company so that the audit opinion will not be
influenced by any relationship between them