Question: One component of good corporate governance is a code of ethics that has been developed for a company. For example, Enron had one of the

One component of good corporate governance is a code of ethics that has been developed for a company. For example, Enron had one of the most complete codes of ethics in corporate America.

Required
a. How would an auditor go about determining whether a corporate code of ethics is actually being adhered to? What evidence would the auditor gather to support an assessment of the corporate code of ethics?
b. Can an auditor make meaningful decisions about areas such as corporate governance where considerable judgment must be applied in making the decision? Are auditors equipped to make subjective judgements?

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