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Table of contents:
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Introduction, Concept, Background and Purpose of the
Code of Ethics
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Integrity
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Independence, Objectivity and Impartiality
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Professional secrecy
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Competence
CHAPTER 1: INTRODUCTION
CONCEPT, BACKGROUND AND PURPOSE OF THE CODE OF ETHICS
1. INTOSAI has deemed it essential to establish an
international Code of Ethics for auditors in the public sector.
2. A Code of Ethics is a comprehensive statement of the values and
principles which should guide the daily work of auditors. The
independence, powers and responsibilities of the public sector auditor
place high ethical demands on the SAI and the staff they employ or
engage for audit work. A code of ethics for auditors in the public
sector should consider the ethical requirements of civil servants in
general and the particular requirements of auditors, including the
latter's professional obligations.
3. With the Lima Declaration of Guidelines on Auditing Precepts (from
the IXth Congress of INTOSAI, meeting in Lima. Can be obtained from the
INTOSAI General Secretariat in Austria) as its foundation, the INTOSAI
Code of Ethics should be seen as a necessary complement, reinforcing the
INTOSAI Auditing Standards issued by the INTOSAI Auditing Standards
Committee in June 1992.
4. The INTOSAI Code of Ethics is directed at the individual auditor, the
head of the SAI, executive officers and all individuals working for or
on behalf of the SAI who are involved in audit work. However, the Code
should not be interpreted as having any impact on the organisational
structure of the SAI.
Due to national differences of culture, language, and legal and social
systems, it is the responsibility of each SAI to develop its own Code of
Ethics which best fits its own environment. Preferably these national
Codes of Ethics should clarify the ethical concepts. The INTOSAI Code of
Ethics is intended to constitute a foundation for the national Codes of
Ethics. Each SAI has the responsibility to ensure that all its auditors
acquaint themselves with the values and principles contained in the
national Code of Ethics and act accordingly.
5. The conduct of auditors should be beyond reproach at all times and in
all circumstances. Any deficiency in their professional conduct or any
improper conduct in their personal life places the integrity of
auditors, the SAI that they represent, and the quality and validity of
their audit work in an unfavourable light, and may raise doubts about
the reliability and competence of the SAI itself. The adoption and
application of a code of ethics for auditors in the public sector
promotes trust and confidence in the auditors and their work.
6. It is of fundamental importance that the SAI is looked upon with
trust, confidence and credibility. The auditor promotes this by adopting
and applying the ethical requirements of the concepts embodied in the
key words Integrity, Independence and Objectivity, Confidentiality and
Competence.
Trust, Confidence and Credibility
7. The legislative and/or executive authority, the
general public and the audited entities are entitled to expect the SAI's
conduct and approach to be above suspicion and reproach and worthy of
respect and trust.
8. Auditors should conduct themselves in a manner which promotes
co-operation and good relations between auditors and within the
profession. The support of the profession by its members and their
co-operation with one another are essential elements of professional
character. The public confidence and respect which an auditor enjoys is
largely the result of the cumulative accomplishments of all auditors,
past and present. It is therefore in the interest of auditors, as well
as that of the general public, that the auditor deals with fellow
auditors in a fair and balanced way.
9. The legislative and/or executive authority, the general public and
the audited entities should be fully assured of the fairness and
impartiality of all the SAI's work. It is therefore essential that there
is a national Code of Ethics or similar document which governs the
provision of the services.
10. In all parts of society there is a need for credibility. It is
therefore essential that the reports and opinions of the SAI are
considered to be thoroughly accurate and reliable by knowledgeable third
parties.
11. All work performed by the SAI must stand the test of legislative
and/or executive scrutiny, public judgements on propriety, and
examination against a national Code of Ethics.
CHAPTER 2: INTEGRITY
12. Integrity is the core value of a Code of Ethics.
Auditors have a duty to adhere to high standards of behaviour (e.g.
honesty and candidness) in the course of their work and in their
relationships with the staff of audited entities. In order to sustain
public confidence, the conduct of auditors should be above suspicion and
reproach.
13. Integrity can be measured in terms of what is right and just.
Integrity requires auditors to observe both the form and the spirit of
auditing and ethical standards. Integrity also requires auditors to
observe the principles of independence and objectivity, maintain
irreproachable standards of professional conduct, make decisions with
the public interest in mind, and apply absolute honesty in carrying out
their work and in handling the resources of the SAI.
CHAPTER 3: INDEPENDENCE, OBJECTIVITY AND IMPARTIALITY
14. Independence from the audited entity and other
outside interest groups is indispensable for auditors. This implies that
auditors should behave in a way that increases, or in no way diminishes,
their independence.
15. Auditors should strive not only to be independent of audited
entities and other interested groups, but also to be objective in
dealing with the issues and topics under review.
16. It is essential that auditors are independent and impartial, not
only in fact but also in appearance.
17. In all matters relating to the audit work, the independence of
auditors should not be impaired by personal or external interests.
Independence may be impaired, for example, by external pressure or
influence on auditors; prejudices held by auditors about individuals,
audited entities, projects or programmes; recent previous employment
with the audited entity; or personal or financial dealings which might
cause conflicts of loyalties or of interests. Auditors have an
obligation to refrain from becoming involved in all matters in which
they have a vested interest.
18. There is a need for objectivity and impartiality in all work
conducted by auditors, particularly in their reports, which should be
accurate and objective. Conclusions in opinions and reports should,
therefore, be based exclusively on evidence obtained and assembled in
accordance with the SAI's auditing standards.
19. Auditors should make use of information brought forward by the
audited entity and other parties. This information is to be taken into
account in the opinions expressed by the auditors in an impartial way.
The auditor should also gather information about the views of the
audited entity and other parties. However, the auditors' own conclusions
should not be affected by such views.
Political neutrality
20. It is important to maintain both the actual and
perceived political neutrality of the SAI. Therefore, it is important
that auditors maintain their independence from political influence in
order to discharge their audit responsibilities in an impartial way.
This is relevant for auditors since SAIs work closely with the
legislative authorities, the executive or other government entity
empowered by law to consider the SAI's reports.
21. It is important that where auditors undertake, or consider
undertaking, political activities they bear in mind the impact which
such involvement might have - or be seen to have - on their ability to
discharge their professional duties impartially. If auditors are
permitted to participate in political activities they have to be aware
that these activities may lead to professional conflicts.
Conflicts of interest
22. When auditors are permitted to provide advice or
services other than audit to an audited entity, care should be taken
that these services do not lead to a conflict of interest. In
particular, auditors should ensure that such advice or services do not
include management responsibilities or powers, which must remain firmly
with the management of the audited entity.
23. Auditors should protect their independence and avoid any possible
conflict of interest by refusing gifts or gratuities which could
influence or be perceived as influencing their independence and
integrity.
24. Auditors should avoid all relationships with managers and staff in
the audited entity and other parties which may influence, compromise or
threaten the ability of auditors to act and be seen to be acting
independently.
25. Auditors should not use their official position for private purposes
and should avoid relationships which involve the risk of corruption or
which may raise doubts about their objectivity and independence.
26. Auditors should not use information received in the performance of
their duties as a means of securing personal benefit for themselves or
for others. Neither should they divulge information which would provide
unfair or unreasonable advantage to other individuals or organisations,
nor should they use such information as a means for harming others.
CHAPTER 4: PROFESSIONAL SECRECY
27. Рeвизори нe смију откривати информацијe добијене у току процeса
рeвизијe трeћим странама, било усмeно или писмeно, осим у сврху испуњeња
ВИР-ових статутарних или других одговорности дефинисаних као дио
ВИР-ових нормалних процeдура или у складу са рeлeвантним законима.
CHAPTER 5: COMPETENCE
28. Auditors have a duty to conduct themselves in a
professional manner at all times and to apply high professional
standards in carrying out their work to enable them to perform their
duties competently and with impartiality.
29. Auditors must not undertake work they are not competent to perform.
30. Auditors should know and follow applicable auditing, accounting, and
financial management standards, policies, procedures and practices.
Likewise, they must possess a good understanding of the constitutional,
legal and institutional principles and standards governing the
operations of the audited entity.
Professional Development
31. Auditors should exercise due professional care in
conducting and supervising the audit and in preparing related reports.
32. Auditors should use methods and practices of the highest possible
quality in their audits. In the conduct of the audit and the issue of
reports, auditors have a duty to adhere to basic postulates and
generally accepted auditing standards.
33. Auditors have a continuous obligation to update and improve the
skills required for the discharge of their professional
responsibilities.
Glossary
The terms used in this Code of Ethics have the same interpretation or
definition as those used in the INTOSAI Auditing Standards. |
