Ethical Dimensions

of Auditing, Human
Resources,
Production and
Finance.

Presented to
Dr. Jennifer Ma’am.
 Table of Contents
01 02 03
About us Auditing Human Resource
• Definition Management
• Ethics & Auditing • Definition
• Ethical dimensions of Auditing. • Ethics & HRM
• Ethical dimensions of HR,.

04 05
Production Finance
• Definition • Definition
• Ethics & production. • Ethics & production.
• Ethical dimensions of production • Ethical dimensions of production
 About Us
Group name:
“Ethical stalwarts”

01. Faizan Fayaz (60)

02. Nasheen Farooq (61)
03. Anzar (57)
04. Wasfi Bilal (59) Semester 3rd
 Auditing
What?
Auditing is a systematic and independent examination of books, accounts,
documents, and other records to ascertain the accuracy and reliability of
the information contained therein. It is a process of verifying that
financial statements and other reports are true and fair.

Who?
Audits are conducted by auditors, who are professionals who are trained
and experienced in the field of auditing. Auditors may work for a
company internally or for an independent firm that audits companies
externally.

Why?
The purpose of an audit is to provide assurance to stakeholders, such as
investors, creditors, and regulators, that the financial information being
presented is accurate and reliable. Audits can also help to identify and
prevent fraud and other irregularities.
 Auditing & Ethics
Auditing is a crucial process in ensuring the accuracy and
reliability of financial information. It involves examining
an organization's financial records, internal controls, and
reporting practices to assess whether they are in
compliance with relevant laws, regulations, and standards.
Auditors play a vital role in protecting the interests of
stakeholders, including investors, creditors, and the public.

Ethical conduct is essential for auditors as their work is

based on trust and confidence. Auditors must be
independent and objective in their assessments, and they
must maintain confidentiality of sensitive information.
They must also be competent and continuously strive to
improve their skills and knowledge.
 Ethical dimensions of auditing:

Integrity:
• Auditors must have the highest level of integrity and act with honesty and fairness in all their
dealings. They must be truthful in their reporting and avoid any conflicts of interest.

Independence:
• Auditors must be independent in fact and appearance. This means that they must be free
from any biases or conflicts of interest that could influence their judgment. They should not
have any personal or financial relationships with the entities they audit

Objectivity:
• Auditors must be objective in their assessments and avoid making subjective judgments.
They should base their conclusions on evidence and sound reasoning.
 Professional skepticism:
• Auditors must maintain professional skepticism throughout the audit process. This
means that they should question information and assumptions and critically evaluate
evidence.

Communication:
• Auditors must communicate effectively with their clients, management, and other
stakeholders. They should be clear, concise, and professional in their communications .

Reporting:
• Auditors must prepare clear and concise audit reports that accurately reflect
the findings of their work. They should also provide timely and relevant
recommendations for improvement.

In addition to these ethical dimensions, auditors must also be aware of and comply with all relevant laws,
regulations, and professional standards. They should also keep up-to-date with changes in the auditing profession
and strive to continuously improve their skills and knowledge.
 Human Resource Management
Human resource management (HRM) is a crucial aspect of any
organization's success, encompassing the strategic and coherent
approach to managing people to effectively and efficiently contribute to
the organization's goals and objectives. It is a multifaceted field that
involves a wide range of activities, from attracting and selecting the
best talent to providing ongoing training and development, designing
fair and competitive compensation and benefits packages, fostering a
harmonious and inclusive work environment, ensuring employee health
and safety, and strategically planning for the organization's future
human resource needs.

Effective HRM practices can yield significant benefits for an

organization, including increased productivity, enhanced innovation,
improved customer service, and a stronger competitive advantage. By
investing in its human capital, an organization can empower its
employees to reach their full potential and contribute to the
organization's overall success.
 Ethics in Human Resource
Management
Ethics in human resource management (HRM) is the practice
of applying moral principles to HR decisions and activities.

It is important for HR professionals to act ethically because

their decisions have a significant impact on the lives of
employees. Ethical HR practices can help to create a fair,
just, and respectful workplace that benefits both employees
and the organization as a whole
 Ethical dimensions of HR
management
Fairness:
HR professionals must treat all
employees fairly and impartially.
This means that they must avoid
discrimination based on race,
religion, gender, sexual
orientation, age, or any other
protected characteristic. They
must also make decisions that
are based on merit, not on
personal biases or favoritism.
Respect:
HR professionals must treat all
employees with respect. This
means that they must value
their employees' opinions and
contributions, and that they
must communicate with them in
a professional and courteous
manner. They must also protect
their employees' privacy and
confidentiality.
Honesty:
HR professionals must be
honest with their employees.
This means that they must be
truthful in their
communications, and that
they must avoid making false
or misleading statements.
They must also keep their
promises to their employees.
 Production
Production refers to the process of transforming raw
materials, labor, and capital into finished goods and
services. It encompasses the planning, organizing,
and controlling of resources to create outputs that
have value for consumers.
Production is a critical function in any organization,
as it directly contributes to the generation of
revenue and profitability.
Production management plays a vital role in the
success of any organization. By effectively
managing production processes, organizations can
optimize resource utilization, reduce costs, improve
quality, and enhance customer satisfaction. This
ultimately contributes to increased profitability and
a stronger competitive advantage.
 Ethics in Production
Ethics in production encompasses the moral
principles and values that guide the creation of
goods and services. It ensures that production
activities are conducted in a fair, just, and
responsible manner, considering the well-being
of workers, communities, and the environment.
This includes worker safety and welfare, fair
labor practices, environmental protection,
transparency and accountability, community
engagement and impact, ethical sourcing,
responsible product design, consumer
protection, animal welfare, and corporate
social responsibility.
 Ethical dimensions of
Production
Fairness: Transparency:
This means that producers should This means that producers should be
treat all stakeholders fairly, including open and honest about how they
workers, customers, and the produce their goods and services.
environment.
For example, they should disclose the
For example, producers should pay ingredients or materials used in their
workers a fair wage, provide them products, and they should be willing to
with safe working conditions, and answer questions about their
avoid discriminating against them. production processes.
They should also provide customers Transparency is important for building
with safe and high-quality products trust with consumers and ensuring
and services, and they should avoid that they are making informed
harming the environment through their purchasing decisions.
production activities.
Sustainability:
This means that producers should use
resources in a way that is sustainable
over the long term.
For example, they should use
renewable resources whenever
possible, and they should minimize
their waste.
Sustainability is important for
protecting the environment for future
generations.
 Financial Management
Financial management is a crucial aspect of running any
organization, encompassing the planning, organizing,
controlling, and monitoring of financial resources to
achieve organizational goals. It plays a pivotal role in
ensuring the financial health and stability of a business,
enabling it to effectively manage its finances, make
informed financial decisions, and maximize shareholder
value.

Financial management is a dynamic and complex field

that requires expertise in financial analysis, accounting
principles, and risk management strategies. Effective
financial management is essential for businesses to
achieve their strategic objectives, maintain financial
stability, and create value for shareholders in the long
term.
 Ethics in Financial Management:
Finance and ethics are closely intertwined, with ethical principles
serving as the foundation for sound financial practices. Adherence
to ethical standards is crucial for ensuring that financial activities
are fair, just, and responsible, promoting trust and integrity within
the financial system and contributing to the overall well-being of
society.

Embracing ethical principles in finance is not merely a matter of

compliance; it is a cornerstone of building a sustainable, inclusive,
and responsible financial system that serves the needs of society as
a whole. By promoting ethical behavior among financial
professionals, fostering transparency and accountability, and
upholding the integrity of the financial system, we can safeguard
investor confidence, promote market stability, and contribute to
the prosperity of communities worldwide.
 Ethical dimensions of Finance
• Integrity: Financial professionals should have the highest level of integrity and
act with honesty and fairness in all their dealings. They should be truthful in
Integri their reporting and avoid any conflicts of interest.
ty

• Independence: Financial professionals should be independent in fact and

appearance. This means that they should be free from any biases or conflicts of
Indep interest that could influence their judgment. They should not have any personal
enden or financial relationships with the entities they finance.
ce

• Objectivity: Financial professionals should be objective in their assessments

and avoid making subjective judgments. They should base their conclusions on
Objec evidence and sound reasoning.
tivity
 Thank
You!
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