BERNARD AGULHAS: Ethics matter in audits
When audit firms shift their attention to profit, and lose their focus on doing their main job properly, it’s a recipe for disaster
As one does in trying times, I spent the weekend perusing some literature in a bid to make sense of the hysteria that has catapulted the auditing profession into the court of public opinion recently. Every day, there’s a new headline suggesting that KPMG’s current woes are the inevitable result of a corrupted system that has failed to protect the public. It’s a misguided perception — but that doesn’t mean our profession doesn’t have issues to address. In The Balanced Company: A Theory of Corporate Integrity, ethics experts Muel Kaptein and Johan Wempe write: "The attention corporations are paying to ethics is driven by more than idealism and a sense of duty: it is often also motivated by enlightened self-interest." (It’s somewhat ironic that Kaptein and Wempe once worked at KPMG.) "Sound corporate ethics can improve a corporation’s public image, empower stakeholders and boost profits. It is possible to conceive of situations where ethical decisions come at a cost of profits." At the...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.