Ethical standards are a "double-edged sword" for auditors, it is claimed.
The Institute of Chartered Accountants of Scotland (ICAS) said that ethical
audit standards are a positive force in business, but more must be done to ensure that the associated burdens are not crippling to small enterprises.
However, the organisation also pointed out that the perception of ethics in business has been improved by the Audit Practices Board's (APB's) Ethical Standards for Auditors.
James Barbour, director of accounting and auditing at ICAS, commented: "The APB should consider extending the use of the Provisions Available for Small Entities to medium-sized companies where the owners and management are one and the same."
He added that recent adjustments instituted by the European commission would align with this.
In July the APB announced that it would be undertaking a full review of the Ethical Standards for Auditors due to the impending Statutory Audit Directive in 2008.
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