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

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

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

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

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

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

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

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

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

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