11ETHICS IN AUDITING

Georgios Papachristou and Michalis Bekiaris

Introduction

Auditing issues involve decisions that affect others and so, by definition, involve ethics. Auditors play a vital role in the financial reporting process, functioning as “critical gatekeepers in the area of issuer reporting and disclosure,” according to Andrew Ceresney, director of the US Securities and Exchange Commission’s Division of Enforcement (Ceresney 2016). Their opinions concerning financial reporting have broad impact on stakeholders, investors, and other related parties. Thus, it is crucial for auditors to consider the moral implications of their decisions.

The auditing profession involves two counterparties: the accounting firm and the auditee firm. ...

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