Presentation on theme: "Revision of ISSAI 30 INTOSAI Code of Ethics"— Presentation transcript:
1 Revision of ISSAI 30 INTOSAI Code of Ethics Project Status ReportINTOSAI Professional Standards CommitteeSteering Committee Meeting, Ottawa, May 2015Jacek Jezierski, Supreme Audit Office of Poland (NIK)PSC
2 BackgroundJune 2013: decision by the INTOSAI PSC Steering Committee to review ISSAI 30 – Code of Ethics and recommend whether it should be revised or notEarly 2014: initial assessment (incl. survey) by a team composed of the SAIs of Indonesia, Poland (coordinator), Portugal, the UK and the USAMay 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 assessmentObjective: 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 stakeholdersEmphasising the importance of ethical culture and principles as a means of preventing unethical behaviourConsistency with other ISSAIsReviewing fundamental principles and core values
5 Areas of revision (2)Considering monitoring compliance with ethical requirements, and inclusion of ethics management and controlUpdating terminologyImproving clarity of the document through consistent headings/numbering/paragraphs etc.
6 Team’s enlargement – ISSAI 30 Revision Team 14 members & one observerALBANIACHILEHUNGARYINDONESIAKUWAITMEXICONAMIBIATHE NETHERLANDSNEW ZEALANDPOLANDPORTUGALSOUTH AFRICAUNITED KINGDOMUNITED STATES OF AMERICAObserver: 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 organisationsDiscussions: 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 changesMarch 2015: First Authors introduce changesApril 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 youWe 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, PolandMeeting objectives:opinions of Team members on the preliminary draftdiscussions on comments provided by the PSC SCdecisions on potential further changes
11 Revision of ISSAI 30: further works Summer 2015: final works on the draftSeptember 2015: final draft ready for approval of the PSC Steering CommitteeOctober 2015: exposure draft of ISSAI 30 posted on[…]Ultimate goal: revised ISSAI 30 approved by XXII INCOSAI in Abu Dhabi in December 2016Information 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 TeamJuly 2015Approval by the PSC Steering CommitteeSeptember 2015Exposure draft posted onMid-October 2015 – mid-January 2016Publication of comments onEnd January 2016Comments introduced to the exposure draftFebruary – May 2016May/June 2016Translation of the draft into INTOSAI official languagesJune – August 2016Approval of the endorsement version by the INTOSAI Governing Board in Abu DhabiDecember 2016Approval by INCOSAI in Abu Dhabi
13 Revised ISSAI 30: basic differences with the present version LengthAddresseeValues: number and wordingGeneral responsibilities of SAIs in the area of ethicsStructureLength: 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 behaviourThe 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 informationPreambleOverall approach to fostering professional and ethical behaviourOverall responsibilities of a SAIValues discussed separately; under each value a short explanation, as well as requirements for both SAIs and their staff, and application guidance hintsDefinitions of key termsThe 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.