1. Walk The Talk Workshop Second young Eurosai 11.11.15 :Israeli Presenters Mira Aboras-Tali Ronit Zandberg : Polish Presenters Agnieszka Morawska Hurbert Cichocki Marcin Blajda

2. Introduction Ethics in Public Auditing

3. What is Ethics? Definition The study of the moral principles and values that an individual uses in order to govern his or her activities and decisions. The investigation of what is right or wrong under particular circumstances.

4. History of Ethics Ethos (gr) – custom Sokrates (469-399 p.n.e.) – first ethical reflection. Virtue - ruthless good deeds Arystoteles (384-322 p.n.e.) – Ethics of the golden mean, principle of the appropriate measure Christian thought - the Ten Commandments and the love to one's neighbour I. Kant (1724-1804) – categorical imperative

5. The Role of Ethics Ethics helps people make better decision. Ethics is about choosing between right and wrong as well as choosing between right and right =>between conflicting values.

6. Why is Code of Ethics so important?  Specifies the general content of ethical standards, adjusting them to more concrete, specific situations  Helps solve conflicts, typical for the profession  Justifies the necessary for executing profession derogations from the general ethical standards  Specifies personality traits adequate for the profession (e.g. patience and accuracy for an auditor )

7. Why does SAI need a Code of Ethics?  The role of the SAI is to scrutinize and assess the activities of the Executive and other public bodies.  The audit institution should set an example and become a role model for other public entities.  High ethical demands are, therefore, placed on public auditors and on the audit institution.  Promoting ethical behavior will contribute to raise public confidence and trust in the public sector.

8. Code of Ethics – ISSAI 30 ISSAI 30 - The Code of Ethics is a comprehensive statement of the values and principles, which should guide the daily work of auditors.

9. Code of Ethics – ISSAI 30  Adopted in 1998 by the XVI Congress in Montevideo  Decision to establish a team for ISSAI 30 Review (at the meeting of the Steering Committee of the INTOSAI Professional Standards Committee, Stockholm 2013)  Approval by INTOSAI: December 2016

10. Ethical Values ISSAI 30  Integrity - to act honestly, reliably, in good faith and in the public interest  Independence and Objectivity - to act in an impartial and unbiased manner  Professional behaviour - to comply with applicable laws, regulations and conventions, and to avoid any activities that may discredit the SAI  Competence - to maintain knowledge and skills appropriate for the role, and to act consistently with applicable standards  Confidentiality - to appropriately protect information

11. Preparing the Code of Ethics for Israeli SAI A Steering Committee, headed by the director general and comprised of employees of all levels and divisions, conducts the formulation of the Code of Ethics with the aid of an external consultant. The Committee started the process of drafting the code in February 2015 and is now in advanced stages of its formulation.

12. The Draft of the Israeli SAI Code of Ethics – the Core Values Integrity and fairness. Objectivity and independence. Professionalism and excellence. Fulfilling a mission; an obligation to the values of the organization. An obligation to human dignity and equality. Collegiality Setting a personal and organizational example.

13. What is an Ethical Dilemma? The decision entails choosing between conflicting moral values.

14. How Do We Make Ethical Choices?  1. The compliance Test – Do I infringe any law or regulation?  2. The mirror Test – Can I look myself in the mirror after making the decision?  3. The Publicity Test – Am I willing to read about my decision in the papers?