Ethics in Audit

This module will enable you to

• Recap the framework of basic ethical principles
• Explore the fundamental problem of independence for auditors
• Apply the FRC's third party test and list of prohibitions
• Understand permitted exemptions for smaller firms
• Consider and react to a variety of ethical threats
• Take positive action to create an ethical culture

About the module

Audit firms should be regarded as a vital part of the financial system, ensuring the truth and fairness of published financial information which is relied on by so many stakeholders when making financial decisions. However, in recent years the FRC has been forced to hand out increasingly large fines and sanctions for the most egregious breaches of the ethical rules within auditing.

Some practices are bringing the profession into disrepute, but this module will help you to take some positive and practical action to avoid being one of those firms. It explores the Revised Ethical Standard issued by the Financial Reporting Council in January 2024 and considers practical actions you can take to ensure compliance.