● The due care principle requires accountants to commit to learning continuously and improving professionally. As a first time audit manager for a service firm, Amanda does not have enough experience which limits the capability and competence of her skills at work. Amanda violates the due care principle as she fails to follow this requirement.
● Independence in Mind and Appearance : Susan, the controller of LAW LLC (the firm that Amanda is auditing), was Amanda’s mentor. This principle obligates accountants to be fair, uncontrolled, and free from conflicts of interest. Thus, Amanda lacks independence of mind as her relationship with Susan may appear to impair her objectivity in providing attestation services. Amanda also lacks independence in appearance as the public would view her previous relationship with Susan as an influential factor in Amanda’s decision making process.
● Integrity - The integrity principle requires accountants to fulfill their responsibilities toward the …show more content…
Susan, as a controller of a service firm, does not abide by accounting standards, nor fixes problems when asked by an auditor. Saul, as an auditor, does not question, nor collects enough audit evidences for his work. Therefore, users of the audited financial statement are left with potential problems due to Susan and Saul’ irresponsibility. Amanda, as an auditor, violates several principles of professional conduct such as due care, independence, and integrity as mentioned above, and leaves issues unresolved when they occur. Therefore, she fails to fulfill her responsibility of maintaining the public’s confidence in the profession of accounting and auditing,