ABSTRACT
This compound syllogism re ects a core element of the audit process: It is grounded in the judgment of fallible humans who are subject to errors and mistakes. At its core, auditing is a process of making professional judgments. Auditors, as members of a profession, are expected to serve a role in society that is unique and transcends the individual. What an auditor does, and how he or she behaves as a professional, is generally governed by the ethical and legal precepts of the profession. The role, expectations, and governance of a profession may be based on long-standing custom or may emanate from legal requirements imposed by government. In this chapter, we start by discussing the nature of the professional environment in which an auditor ful lls his or her responsibilities. It is the existence of this professional environment that de nes the nature of ethical decision making within the context of the audit.
