Auditing

Chapter 19 Discussion Question (last one)
Chapter 19 discusses many issues surrounding ethics in general and in auditing. Describe a time when you have faced an ethical dilemma in your professional life. Then explain the course of action you decided to take in this situation and why. Lastly, in your own words explain why it is so crucial for an auditor to remain ethical given the nature of their work.
Provide 1-2 paragraphs. You will be graded out of 10 points based on content and writing quality, so be sure you think critically, answer all questions I pose, express yourself clearly and thoroughly, and proofread for grammatical accuracy.
ALSO, comment on this student:
“Jose Escobar
Professional Conduct, Independence, and Quality Control
As a seasonal tax preparer, I have faced ethical dilemmas during every tax season in the 10 years I have been doing taxes. Every year, there is at least one customer that wants to be extremely creative when preparing his or her tax return. I have been asked directly to play with the numbers and enter different scenarios in the system to see which option would result in the highest refund. My answer is always the same, the customer has to provide the correct information and that is the only way I will agree to complete the tax return; even if a couple of times the customer has walked away because I did not accept to enter information that I knew was fabricated.
It is critical for an auditor to conduct all audit engagements with integrity as he is the general public “ambassador” when it comes to guarantee that a company’s financial statements are presented in a fairly manner. The auditor has to behave in an ethical manner throughout the engagement and show independence in order for all the stakeholders to be confident in the company’s financial state.”

Discussion
I am a practicing CPA for the last 5 years. I have encountered a number of times a situation when I faced an ethical dilemma while performing my audit assignments. Last year, I was conducting an audit of a hospital’s annual financial statements. The cashier of the hospital was involved in fraudulent activities and I highlighted his frauds. He approached me and requested to hide these facts and offered me a significant amount as bribe. I straightly refused him and reported the matter to the persons those charged with governance. I never compromised on my professional code of ethics, like integrity, independence and professional behavior.
It is very important for an auditor that he must conduct all audit assignments by following the integrity, independence, professional behavior and due care. He should not violate any of these principles because he is a representative of some stakeholders and also the public.
Comments on first discussion:
As mentioned in the above discussion a number of situations can be faced by a taxpayer, when clients come and request to file their income tax returns with fabricated personal information. So being an auditor, one should not accept such type of assignment as it is against the professional principals.