Chapter Review

Key Takeaways

• Auditors have a responsibility to serve the public interest.
• The AICPA Code of Professional Conduct provides the ethical framework for CPAs.
• Integrity, objectivity, independence, and due care are essential professional values.
• Independence must exist both in fact and in appearance.
• Common threats include self-interest, self-review, advocacy, familiarity, undue influence, and management participation.
• Professional skepticism requires a questioning mind and critical evaluation of evidence.
• Confidentiality protects client information while allowing legally required disclosures.
• Public company audits are subject to additional independence requirements under PCAOB rules and the Sarbanes-Oxley Act.

Ethics is not a separate part of auditing—it is the foundation of every audit decision.