Select one bolded section that interests you and read through it. Summarize what the rules cover. Is there anything missing that you feel should be added? Are there any guidelines that you would eliminate? What would be the biggest challenge an auditor might face following your chosen section? Be sure to respond to at least one of your classmates’ posts with new information about the topic, a clarifying example, and so on.
The Correct Answer and Explanation is:
Selected Section: Due Care
Summary of the Rules:
The Due Care principle in the AICPA Code of Professional Conduct requires that members of the profession perform their professional responsibilities with competence and diligence. This means that auditors must:
- Continually strive to improve their competence.
- Maintain professional knowledge and skill at a level required to ensure that clients or employers receive competent professional service.
- Act with thoroughness and in accordance with applicable technical and ethical standards.
- Complete professional tasks to the best of their ability, without negligence or shortcuts.
In essence, due care means providing high-quality services that meet both ethical and technical standards.
Is Anything Missing?
Yes, while the principle is strong, there are areas that could be improved. Technology competence is not emphasized enough. With the rise of audit software, data analytics, and cybersecurity risks, auditors need to maintain technical IT skills as part of professional competence.
Additionally, mental health and workload management could be considered. Due care assumes the professional is functioning optimally, but excessive stress or overwork can impair judgment and performance. Encouraging firms to support well-being would enhance the application of due care.
Any Guidelines to Eliminate?
No guidelines in the “Due Care” section seem unnecessary. All of them support the goal of providing competent and ethical service. However, some language could be streamlined for clarity. For example, merging similar references to competence and continuing education would avoid redundancy.
Biggest Challenge for Auditors:
The greatest challenge is keeping up with rapid changes in standards, technologies, and industry practices. Auditors face constant pressure to stay current with accounting and auditing standards (e.g., GAAP, GAAS, PCAOB rules), while also learning new software and understanding evolving business models. This can be difficult, especially for auditors in smaller firms with limited training resources.
