What is the implication of acting in good faith during an audit?

Acting in good faith during an audit fundamentally entails a commitment to honesty and integrity throughout the auditing process. This principle is crucial as it ensures that auditors conduct their work objectively, maintaining a high ethical standard, which is vital for fostering trust between the auditor, the auditee, and other stakeholders.

By upholding honesty and integrity, auditors are more likely to identify accurate financial information and provide reliable assessments, which ultimately contribute to the credibility of the audit process. This expectation aligns with professional standards and ethical guidelines in the field of auditing, emphasizing that all parties should operate transparently and sincerely throughout the engagement.

Improved communication between auditors and auditees and documentation are important aspects of the audit process, but acting in good faith primarily emphasizes the core values of honesty and integrity. Legal responsibilities typically arise regardless of the good faith effort; thus, acting in good faith does not inherently increase those responsibilities.