1. Code of Ethics – Discussion Question
What is Code of Ethics?
What are the key elements of Code of Ethics?
Session 2 - Level Two ISSAIs

2. Code of Ethics – Discussion Question
A comprehensive statement of the values and principles which should guide the daily work of auditors
Key elements of Code of Ethics:
Independence
Integrity
Trust, confidence and credibility
Objectivity and impartiality
Confidentiality
Competence
Session 2 - Level Two ISSAIs

3. Code of Ethics – Independence
SAI is not involved in the management of the organizations they audit.
SAI personnel do not develop too close a relationship with the entities they audit
SAI prevents internal conflicts of interest and corruption and ensures transparency and legality of its own operations
Auditors refrain from becoming involved in all matters in which they have a vested interest
Auditors are independent and impartial, not only in fact but also in appearance.
(ISSAI 10, Principles 3, 4 & ISSAI 30, Para16 & 17)
Session 2 - Level Two ISSAIs

4. Code of Ethics – Independence
When auditors are permitted to provide discretionary services, care should be taken that these services do not lead to a conflict of interest.
Auditors should protect their independence by refusing gifts or gratuities
Auditors must not use official position for private purposes and avoid relationships which involve risk of corruption or raise doubts about their independence.
(ISSAI 30, Para17, 22, 23 & 24)
Key audit personnel are rotated to reduce the risk of familiarity with the organization being audited.
(ISSAI 40, Element 2)
Session 2 - Level Two ISSAIs

5. Code of Ethics – Integrity
SAI has a code of ethics, based on official documents of INTOSAI, International Federation of Accountants, or recognized standard- setting bodies.
SAI actively promotes ethical behaviour throughout the organisation
Ethical requirements and obligations of auditors, civil servants or others are made public
(ISSAI 20, Principles 3 & 4)
Conduct of SAI personnel is beyond reproach at all times and in all circumstances
(ISSAI 30, Para 5 and ISSAI 40, Element 2)
Session 2 - Level Two ISSAIs

6. Code of Ethics – Integrity
Audit employees must:
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 SAI resources
(ISSAI 30, Para 12 & 13)
Contracts for outsourced services are subject to SAI’s ethical policies and confidentiality agreements
Head of SAI is informed in a timely manner of breach of ethical requirements for immediate resolution.
(ISSAI 20, Principle 5 and ISSAI 40, Element 2)
Session 2 - Level Two ISSAIs

7. Code of Ethics – Trust, Confidence and Credibility
Auditors conduct themselves in a manner which promotes co-operation and good relations between auditors and within the profession
Auditors deal with fellow auditors in a fair and balanced way
The SAI is considered to be thoroughly accurate and reliable by knowledgeable third parties.
Work of SAI stands the test of legislative and/or executive scrutiny, public judgment on propriety, and examination against national Code of Ethics.
(ISSAI 30, Paras 8, 10 & 11)
Session 2 - Level Two ISSAIs

8. Code of Ethics – Objectivity and Impartiality
There is objectivity and impartiality in all work conducted by auditors, particularly in their reports, which should be accurate and objective.
Audit conclusions are based
exclusively on evidence obtained and assembled in accordance with the SAI’s auditing standards and
after taking into account the views and information provided by audited agency
Auditors maintain their independence from political influence in order to discharge their audit responsibilities in an impartial way
(ISSAI 30, Para 18, 19 & 20)
Session 2 - Level Two ISSAIs

9. Code of Ethics – Confidentiality
Auditors should not use information received in the performance of their duties
for personal benefits
to harm others
provide unfair or unreasonable advantage to other individuals or organizations
Auditors must not disclose information obtained during audit process to third parties, either orally or in writing, except
for meeting statutory or other identified responsibilities or
in accordance with relevant laws
(ISSAI 30, Para 26 & 27)
Session 2 - Level Two ISSAIs

10. Code of Ethics – Competence
Auditors must not undertake work they are not competent to perform
Auditors should know and follow applicable auditing, accounting, and financial management standards, policies, procedures and practices
Auditors must exercise due professional care in conducting/supervising audit and in preparing reports
Auditors have a continuous obligation to update and improve the skills required for the discharge of their professional responsibilities.
(ISSAI 30, Para 27, 29, 31 & 33)
Session 2 - Level Two ISSAIs