In a 1984 opinion handed down by the U.S. Supreme Court, Chief Justice Warren Bu
ID: 2531028 • Letter: I
Question
In a 1984 opinion handed down by the U.S. Supreme Court, Chief Justice Warren Burger noted that “the independent auditor assumes a public responsibility transcending any employment relationship with the client.” If this is true, do auditors have a moral or professional responsibility to turn in clients who are cheating on their taxes or violating other laws?In a 1984 opinion handed down by the U.S. Supreme Court, Chief Justice Warren Burger noted that “the independent auditor assumes a public responsibility transcending any employment relationship with the client.” If this is true, do auditors have a moral or professional responsibility to turn in clients who are cheating on their taxes or violating other laws?
In a 1984 opinion handed down by the U.S. Supreme Court, Chief Justice Warren Burger noted that “the independent auditor assumes a public responsibility transcending any employment relationship with the client.” If this is true, do auditors have a moral or professional responsibility to turn in clients who are cheating on their taxes or violating other laws?
Explanation / Answer
Hi Student, Yes auditors have a professional responsibility to the accounting profession to turn in clients whoare cheating on their taxes or violating other laws. Although it is expected for professional accountants to act in accordance to the AICPA's code of conduct for professional responsibility to not disclose any confidential information without the specific consent of the client, the auditor has the moral and professional responsibility to disclose information in the independent auditor's report including fraud or other offenses. This is related to the independence and integrity of the auditor as well as the auditor's responsibility in creating transparency to the public.
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