Professional Ethics

[匿名]

2008-07-12 8:39 pm

As a auditor (signed on the company's audit report) of the listed company , if the auditor owned share ( pruchased from the stock), how it affect the auditor's independence, how to avoid this??? thank you.

更新1:

The auditor owned those share before he accepted as the audit appointment of this company, and he hold those share for long term investment? What is the code of professional conduct requirement? any other alternative options?

回答 (1)

用戶2576

2008-07-12 10:55 pm

✔ 最佳答案

If the auditor owned share of that listed company, he has an interest on it and thus his personal wealth. Apparently, people may think he may biased the accounts with inflated assets value but with no qulification in his auditor's report as this may affect the share price and thus his personal wealth.
To avoid this unfair, unethical issue, the auditor should not hold any shares either in his own names or in name of kins or related parties or companies. This will make himself in a much objective position and a professional manner when giving out an auditor's report.

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