04 November 2025

Objectivity (Section 112)

Fact
Objectivity means not allowing bias, conflict of interest or undue influence to affect your professional judgement. 

Elaboration
  • You must not favour any party (e.g. management, shareholders, friends).
  • You cannot let personal relationships or pressure change your conclusions.
  • Your judgement must be supported by evidence, and another independent auditor should be able to reach a similar conclusion.
Example
The finance manager is your close friend. During the audit, you find an error that makes profit look higher.
  • If you hide it to “jaga hati kawan”, you are not objective.
  • If you still report it and ask for adjustment, you maintain objectivity.

Ethical conduct towards clients:
  • Do not allow personal relationships, bias, conflict of interest or undue influence from clients to affect your judgment.
  • Avoid situations where a reasonable third party would doubt your objectivity.

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