Course Overview

course description for Professional Ethics & Standards in Auditing – typically offered in Year 4, Semester 7 of a BBA in Auditing:

Professional Ethics & Standards in Auditing

Course Code: BBA-AUD 495
Credit Hours: 3
Semester Offered: Year 4 – Semester 7

Course Description

This course examines the ethical principles, professional standards, and regulatory frameworks governing auditing practice. It emphasizes the importance of integrity, objectivity, independence, and professional competence in delivering quality audit services. Students will explore the International Ethics Standards Board for Accountants (IESBA) Code, International Standards on Auditing (ISA), and other regulatory guidelines. Case studies of audit failures and ethical dilemmas will be used to highlight the practical application of professional ethics in decision-making and audit engagements.

Course Objectives

By the end of this course, students should be able to:

1. Understand the ethical principles underlying the auditing profession.

2. Apply professional standards to guide auditor behavior and decision-making.

3. Assess ethical dilemmas in auditing and develop appropriate responses.

4. Recognize the importance of independence, objectivity, and confidentiality.

5. Understand the regulatory and legal frameworks affecting auditors.

6. Promote ethical conduct and professional responsibility in organizations.

Learning Outcomes

Upon completion, students will be able to:

• Explain key ethical principles for auditors, including integrity, objectivity, and professional behavior.

• Apply the IESBA Code and ISA guidelines in audit practice.

• Identify and resolve ethical conflicts and dilemmas in auditing engagements.

• Demonstrate awareness of regulatory requirements and professional accountability.

• Evaluate real-world audit failures from an ethical and standards-based perspective.

Key Topics

1. Introduction to Professional Ethics

   • Ethics in business and auditing

   • Importance of ethical behavior in maintaining public trust

2. International Ethical Standards for Auditors

   • IESBA Code of Ethics

   • Principles of integrity, objectivity, professional competence, and due care

   • Confidentiality and professional behavior

3. Independence and Conflict of Interest

   • Threats to auditor independence

   • Safeguards and mitigation strategies

4. Auditing Standards and Compliance

   • Overview of International Standards on Auditing (ISA)

   • Application of ISA in ethical decision-making

5. Ethical Dilemmas and Decision-Making

   • Common ethical challenges in auditing

   • Fraud detection and reporting

   • Case studies of audit failures (e.g., Enron, WorldCom)

6. Legal and Regulatory Frameworks

   • National regulations affecting auditors

   • Reporting obligations to regulators and oversight bodies

7. Professional Conduct and Accountability

   • Role of professional bodies and licensing authorities

   • Continuing professional development and ethical culture

Teaching Methods

• Lectures and interactive discussions

• Case studies of ethical dilemmas and audit failures

• Group debates and role-play exercises

• Guest lectures from professional auditors and ethics specialists

Assessment Methods

• Assignments & Case Analyses (20%)

• Midterm Examination (20%)

• Group Project (Ethical Audit Scenario) (10%)

• Final Examination (50%)

???? Recommended Textbooks & References

1. Duska, R., Duska, B. S., & Ragatz, J. – Accounting Ethics

2. Arens, A. A., Elder, R. J., & Beasley, M. S. – Auditing and Assurance Services: An Integrated Approach

3. IESBA – Code of Ethics for Professional Accountants

4. International Standards on Auditing (ISA) – IFAC/IAASB

5. Mintz, S. M. – Ethics in Accounting: A Decision-Making Approach