Importance of Ethics and Knowledge of Auditing Standards to Auditor's Decision Making

Auditing standards are important in auditing because it gives the auditors guidelines to follow when reviewing the documents during the audit. The standards also help the auditors ensure that financial statements have no errors and that the business is complying with the laws. In addition, ethics are important in auditing because they guide the auditors to set aside their feelings and opinions and focus on the facts when reviewing documents. Another reason ethics are important is that you want the auditor's results to be thorough and unbiased.
Independence is a requirement for auditors because you want the audit result to come from an auditor with integrity and no connection with the business. The auditor's results reassure Creditors and Banks that the financial statements are reasonable and not manipulated by the company or the CPA. Another reason Independence is essential is that it is proof that a third party reviewed the financial statements and the numbers are correct.
If the CPA or auditor fails to have ethical standards, they may go to prison, pay a fine and lose their license. They may also not continue working in the accounting field because their reputation will be tarnished.