The Yellow Book “Government Auditing: Foundation and Ethical Principles”

Chapter 1 of the Yellow Book “Government Auditing: Foundation and Ethical Principles” presents five general and fundamental ethics principles for government auditors. These principles are not specific standards, rules, or requirements. Their focus is on acting in the public interest; demonstrating integrity, objectivity, and professional behavior, and making proper use of government information, resources, and position. The AICPA Code of Professional Conduct, on the other hand, is a source for both ethical principles and specific rules. (The AICPA Code of Professional Conduct is presented in Chapter 19 of your textbook).

How do accounting standards differ from ethical principles?

Should the Yellow Book include specific ethics requirements, or should each state and local government to develop its own customized ethics requirements?

Discuss pros and cons.