Audit and Ethics in Practice - Independence, Threats and Professional Judgement

Topics covered

• Introduction – Why ethics, independence and public confidence matter to audit quality. 
• The Ethical Framework – The five fundamental principles and the relationship between professional codes and audit-specific requirements. 
• Applying Ethics in Practice – Self-interest, self-review, advocacy, familiarity and intimidation threats; professional judgement, safeguards and ethical drift. 
• Applying the FRC Ethical Standard – Independence of mind and appearance, financial interests, fees, non-audit services, relationships and gifts and hospitality. 
• Professional Behaviour and Technology – Confidentiality, professional conduct and the responsible use of AI and digital tools. 
• Ethical Decision Making in Practice – Using a structured approach to evaluate threats, apply the reasonable and informed third-party perspective and document conclusions. 
• Responding to Ethical Dilemmas – Addressing pressure and disagreements, seeking consultation and deciding when an engagement or service cannot continue. 
• Embedding Ethics into Everyday Audit Practice – Maintaining ethical awareness throughout the audit lifecycle and using practical scenarios to reinforce good judgement. 
• Conclusions and Takeaways – Key actions for recognising issues early and maintaining independence and professional scepticism. 

 1 CPD hour