1. Revision of ISSAI 30 INTOSAI Code of Ethics
Project Status Report
INTOSAI Professional Standards Committee
Steering Committee Meeting, Ottawa, May 2015
Jacek Jezierski, Supreme Audit Office of Poland (NIK)
PSC

2. Background
June 2013: decision by the INTOSAI PSC Steering Committee to review ISSAI 30 – Code of Ethics and recommend whether it should be revised or not
Early 2014: initial assessment (incl. survey) by a team composed of the SAIs of Indonesia, Poland (coordinator), Portugal, the UK and the USA
May 2014: recommendation on the need to revise ISSAI 30 submitted to the PSC Steering Committee (on the basis of survey results, and outcomes of works of EUROSAI Task Force on Audit & Ethics)  approved by PSC SC

3. Scope and objective of the ISSAI 30 revision
Scope: revise ISSAI 30, and related Notes, as applicable, in accordance with the results of the initial assessment
Objective: to make the standard more useful to SAIs and to make it meet the challenges of the current public audit environment

4. Areas of revision (1)
Shifting from the perspective of an individual auditor to the perspective of a SAI, with due consideration to stakeholders
Emphasising the importance of ethical culture and principles as a means of preventing unethical behaviour
Consistency with other ISSAIs
Reviewing fundamental principles and core values

5. Areas of revision (2)
Considering monitoring compliance with ethical requirements, and inclusion of ethics management and control
Updating terminology
Improving clarity of the document through consistent headings/numbering/paragraphs etc.

6. Team’s enlargement – ISSAI 30 Revision Team
14 members & one observer
ALBANIA
CHILE
HUNGARY
INDONESIA
KUWAIT
MEXICO
NAMIBIA
THE NETHERLANDS
NEW ZEALAND
POLAND
PORTUGAL
SOUTH AFRICA
UNITED KINGDOM
UNITED STATES OF AMERICA
Observer: IFAC

7. ISSAI 30 Revision Team: what we have done so far and how (1)
Concept: survey, achievements of EUROSAI Task Force on Audit & Ethics, codes of ethics of other organisations
Discussions: at meetings in May 2014 (project proposal – main concept) and in October (detailed concept of the contents and structure)

8. ISSAI 30 Revision Team: what we have done so far and how (2)
Early 2015: drafts of individual sections of the document developed by groups of two SAIs (First Authors)
Meeting in February 2015: discussion on the very first draft and proposals for changes
March 2015: First Authors introduce changes
April 2015: groups exchange sections and give a fresh look – further changes

9. ISSAI 30 Revision Team: what we have done so far and how (3)
May 2015: compilation and editing (including proofreading by native speakers)
RESULT: preliminary draft in front of you
We expect you to bless the work done so far, to express your opinion on the draft (Have we gone the right way?), and/or present your comments/suggestions for changes that we will discuss with the Team at the upcoming meeting in two weeks.

10. ISSAI 30 Revision Team next meeting
Date and venue: June 2015, Warsaw, Poland
Meeting objectives:
opinions of Team members on the preliminary draft
discussions on comments provided by the PSC SC
decisions on potential further changes

11. Revision of ISSAI 30: further works
Summer 2015: final works on the draft
September 2015: final draft ready for approval of the PSC Steering Committee
October 2015: exposure draft of ISSAI 30 posted on
[…]
Ultimate goal: revised ISSAI 30 approved by XXII INCOSAI in Abu Dhabi in December 2016
Information on the project is available on the PSC website:

12. Revision of ISSAI 30: detailed time frame for the Due Process
Exposure draft ready – approval by the ISSAI 30 Revision Team
July 2015
Approval by the PSC Steering Committee
September 2015
Exposure draft posted on
Mid-October 2015 – mid-January 2016
Publication of comments on
End January 2016
Comments introduced to the exposure draft
February – May 2016
May/June 2016
Translation of the draft into INTOSAI official languages
June – August 2016
Approval of the endorsement version by the INTOSAI Governing Board in Abu Dhabi
December 2016
Approval by INCOSAI in Abu Dhabi

13. Revised ISSAI 30: basic differences with the present version
Length
Addressee
Values: number and wording
General responsibilities of SAIs in the area of ethics
Structure
Length: draft much longer. Reasons: (1) More addresses – no longer only auditors, but SAIs as well  responsibilities of SAIs listed (2) INTOSAI Community (respondents of the survey of early 2014) wanted to have more details  hence the application sections.
But it is still a framework document – not too specific, encouraging SAIs to develop own codes, tools, ethical „infrastructure”.
Structure: different form of numbering: sections, subsections, paragraphs. We believe it is clear and easy to navigate.

14. Revised ISSAI 30: contents
Five key values to replace four values of present ISSAI 30: 1. Integrity 2. Independence and Objectivity 3. Competence 4. Confidentiality 5. Professional behaviour
The four values of the present ISSAI 30 are the following: (1) Integrity, (2)Independence, Objectivity and Impartiality, (3) Professional Secrecy, (4) Competence.
The Team decided to have a modified set of values in the revised document on the basis of discussions and brainstorm sessions (meeting October 2014) during which they discussed ethical expectations of SAIs and their employees from various perspectives: internal perspectives of a supervisor, a subordinate, and a colleague, and external perspectives of stakeholders, auditees, etc. On the basis of these discussions and brainstorming sessions, a model ethical and a model unethical auditor/employee of a SAI was developed that served the Team to define a set of values that should guide an ethical SAI employee.
These five values are (almost) identical to the fundamental principles of the IESBA Code (Code of Ethics for Professional Accountants): (a) Integrity, (b) Objectivity, (c) Professional Competence and Due Care, (d) Confidentiality, (e) Professional Behavior. (These are called principles and defined, e.g.: Integrity – A professional accountant should be straightforward and honest in all professional and business relationships. )
Integrity – is considered the core value in the present code. In the revised version – it is also the most important value, whose nature is regarded as horizontal, underpinning all other values.

15. Revised ISSAI 30: structure
Introduction and technical information
Preamble
Overall approach to fostering professional and ethical behaviour
Overall responsibilities of a SAI
Values discussed separately; under each value a short explanation, as well as requirements for both SAIs and their staff, and application guidance hints
Definitions of key terms
The Team also considered circumstances and tools that a SAI should provide so that to encourage its employees to cherish these values. Employees should not be left alone  hence the section of ISSAI 30 dedicated to overall responsibilities of SAIs.
Values:
Each discussed separately: (1) explanation, (2) requirements: separately for a SAI, and for employees (both auditors and non-auditors), (3) application guidance: again separately for a SAI, and for employees (both auditors and non-auditors)

16. Revised ISSAI 30: PSC SC’s opinion
Talk to us!
us:
Be critical!
Comments preferably by 8 June.

17. Thank you!