Many people are familiar with the role of the ethics in the auditing profession which basically is integrity and objectivity for the auditors. This essay addresses dimension of the ethics in the profession of auditing main demands for them in the profession is to assess the integrity and the ethical value of their customers or clients. This is indeed very difficult task for the auditors in practice and demands a deep and robust understanding the value of ethics, ethical infrastructure with their products.
According to roger D, martin auditors face ethics issues from two perspectives among which one is well known and other being known and appreciated by the people who are familiar with auditors knowing their work and responsibility. The prospective of this is to deal among the ethical foundation of the auditing profession and to show the integrity and get appreciated with the job they do. This indicates ethics prospective as seeking within their profession on how to manage and achieve their targets with no difficulty. The other prospective, which the auditors face, is to understand and get the solution for the current and new clients. This is generally referred as an assessment, which demands a complete attention and understanding of ethics, ethical infrastructure and the solution of that infrastructure. This essay will give a complete picture on why ethics is important to the auditors and how significant is the contribution of auditors is to the effective corporate governance of large Uk companies.
According to Ghazala saeed, ethics is derived from the Greek word Ethikos which defines it as custom and habits. Ethical standards are always presented in the profession way which basically aim and focus for self regulation and the commitment made to the public by the firm. A code of ethics is not an option for a professional, rather it is required by the profession (Boatright, 1999). According to Smith et al., 2005 the code of ethics is stated as a important element in making a profession and the firm following it will keep their behaviour well maintained. The code of conduct would not be effective if the member of a profession are lacking integrity and are of low character.
Many companies practice the code of ethics which are been developed and maintained by the mangers and top executives of the business firms which are restricted to the share holders of the firm . ethical codes have been adopted by the firms in order to set out what they consider to be their social responsibilities, and to establish high standards of good conduct to their employees. The codes have highly been used in many companies as it has lot of advantages to both public relations and in creating environment in which the ethical concerns of the employees can be discussed and raised freely. According to Erliden the main purpose of auditing is to serve different stake holders who are dependent on the auditing process which they want it to be accurate and hoping that the auditors are acting ethical. Hermansson says that ethics are very important in auditing profession and is most important than in any other profession . Erliden later suggested that each and every auditor should have the ability to handle an ethical dilemma in such a way that it satisfies, auditors should also have knowledge and experience to handle situation and give accurate results. Many auditing firm never hesitate to take a group discussion as if the result comes out negative it would hurt the individual as well as the firms image, so taking group decision always gives positive results .
In an accounting firm an audit is staged by the independent assessment through which a company's financial work are organized and prepared and presented to and by its management. The work is mostly performed by the experienced, competent, independent, skilled and objective persons, who are known as the accountants or auditors. Auditors are very knowledgeable with every aspect of their job which is auditing and give a report known as auditors report. There are mainly two types of auditors:

External Auditors: the external auditors are called from outside the company to access and evaluate the financial statements of their clients and to perform necessary evaluation that is required. They are mostly employed for a period of 1 year.

Internal Auditors: These are the company’s employees to access and evaluate the internal control required by the company. They report directly to BOD’s or the top management. They are responsible to have a through view related to the frauds and mishappenings that exists in a company

The primary role for any auditor is to provide users with independent expert opinion and information about the truth and fairness of the financial statement.
The corporate governance is internally debated concept with many characteristics (nobel, 1998). In the context of corporate governance auditors play an important role. Auditors are given lot of power to enchance and avoid the wrong doings by the firms management.

Auditors are give lot of room with wide powers to cite the wrongdoings by the management, here auditors are been expected to be independent of the company to report the companies objectivity. Auditors have power to remove the biasness of management in order to the presentation of financial information of the company (Carmichael, 1997). Auditors can report in accordance to what the companiey practices corporate governance. They are intended to play a vital role in maintaing good corporate governance (ali, 1999). Auditors have to also act as the guardian of the financial integrity (anandarajah, 2001).

According to Low, 2002. An effective and objective auditing is an important and essential part of the corporate governance. Which helps to ensure the legal position meeting the international standards in the realm of corporate governance (simous vischer & co v Holt , 1979). In respect to their duty to check the conduct of any servant or the director of the firm. Corporate governance is the factor for the institutional investors on deciding whether to invest in any particular firm (McKinesy & Co, 2002). On the issue of accountability the corporate governance has a role to play in.

Many emphasis are placed on auditors in accordance to the context of corporate governance as the auditors are the first one to spot the corporate exploitation which is the nature of auditors fuctions and the main purpose to audit a company’s accounts. Sometimes the auditors fail to detect the wrongdoings, for which the duties and obligations of auditors have been broded and widened (nobel, 2003). In order to misleading and detect the wrong doings auditors have to and are obliged to take more strict approach to their respective clients. Which relates to taking more attention and active role in their job. It should be ensured that the auditors are independent of the firm in respect to to the virtue of an auditors honesty (francis, 1990). Futher more an auditor should not be allowed to do any form of non-audit services as it puts the auditors in a area where conflicts may occur. Due to which auditor and management of the company get in a close relationship which create conflicts and misleading . the relationship between the firm and the auditor should be maintained , futher more the auditors should be rotated every year rather than continuing with the same auditor again and again.

The most popular form of business is owing a company as compared to the sole traders and parternerships. Every year it passes by with more companies being formed to do businesses, it is however vital that the capital raised by the firm is used for lawful purposes, in respect to this auditors are under the duty to audit the firms and check whether there is any wrong doings. There should be equal importance to the duties and obligations of auditors. Auditing provides a high level of assurance about an accountability matter which is expressed as reasonable assurance or else the information on the repot would be lost and be misleading. The duties of the auditors should be expanded in the sake of stability of financial and economic sector, capital market and intrests of stockholders and stake holders. A higher and widen auditing will provide good and quality information to them. Modern techniques should be applied for auditors in accordance to their duties and obligation in the context of corporate governance.

Reference list

Anandarajah, K. 2001. Corporate Governance: A Practical Approach,
Butterworths Asia, Singapore, p. 149.

Boatright, J. R. (1999). Ethics in Finance. Malden: Blackwell Publishers

Carmichael, D. R. 1977. “The auditor’s role and responsibilities’, The Journal of
Accountancy”, vol. 55, p. 56.

Davis, M. 2002. “Self-regulation called into question, Australian Financial
Review”, vol. 19, p. 13.

Simonius Vischer & Co v Holt (1979) 2 NSWLR 322

McKinsey & Co, 2002. Global Investor Opinion Survey on Corporate
Governance, p. 2.