1. Revised ISSAI 30 Endorsement Version Steering Committee of the Professional Standards Committee Copenhagen, 27 May 2016 Jacek Jezierski, Supreme Audit Office of Poland (NIK)

2. 1998: adoption of the Code of Ethics by the XVI INTOSAI Congress in Montevideo June 2013: decision by the INTOSAI PSC Steering Committee to review ISSAI 30 Background (1)

3. Early 2014: initial assessment (including survey among INTOSAI community and developments of EUROSAI TF Audit & Ethics) May 2014, Bahrain: PSC SC approves project proposal on revision of ISSAI 30 Background (2)

4. ISSAI 30 Revision Team ALBANIA CHILE HUNGARY INDONESIA KUWAIT MEXICO NAMIBIA THE NETHERLANDS NEW ZEALAND POLAND PORTUGAL SOUTH AFRICA UNITED KINGDOM UNITED STATES OF AMERICA IESBA

5. 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 Reviewing fundamental principles and core values

6. Introduction of ethics management and control into the Code  building an ethical infrastructure Consistency with other ISSAIs Updating terminology Improving clarity of the document through consistent headings/numbering/paragraphs etc. Areas of revision (2)

7. October 2015: ISSAI 30 Exposure Draft ready

8. Addressee General responsibilities of SAIs in the area of ethics Values: number and wording Structure Length Revised ISSAI 30: basic differences between the present version and ED

9. Ethical values Revised ISSAI 30 Integrity Independence and objectivity Competence Professional behaviour Confidentiality Current ISSAI 30 Integrity Independence, Objectivity and Impartiality Professional Secrecy Competence

10. Preamble Overall approach to ethical behaviour Overall responsibilities of SAIs Values discussed separately; requirements for both SAIs and their staff, and application guidance hints – also separately for SAIs and staff. Revised ISSAI 30: structure

11. October 2015: approval of the ED by the PSC Steering Committee 1 November 2015 – 1 February 2016: Exposure Draft posted on www.issai.org for commenting. ISSAI 30 – Exposure Draft

12. Responses received from 55 organisations (52 SAIs, 1 INTOSAI Regional Working Group and 2 other organisations) 296 comments altogether submitted by 32 organisations 23 SAIs fully supported the draft or had no comments. Comments on draft revised ISSAI 30: some statistics

13. March 2016: Team Meeting in Kraków, Poland: analysis of comments, responses to their authors, development of the Endorsement Version – based on the comments received and accepted. Comments on draft revised ISSAI 30

14. Concept of leadership elaborated Definition of Independence and Objectivity elaborated Another requirement for SAIs added under Integrity: (ensure that the internal environment is conducive for staff to raise ethical breaches) Issue of ethics control system clarified (not necessarily a separate system) Exposure Draft and Endorsement Version: main differences

15. Importance of cooperation and knowledge sharing has been emphasised Explanation sections: heading has been removed, and the contents have been moved to application guidance. Table of contents added. Editorial improvements (numbering, wording) Exposure Draft and Endorsement Version: main differences

16.  The Ethical Code could be MORE summarized and complemented with the submission of an Implementation Guide, to make it more educational and easy to assimilate;  Illustrative scenario based examples including case studies are required to include to help practitioners or auditors to understand better;  Reporting mechanism of conflict of interest, ethics dilemmas are required; Revised ISSAI 30: guidance requested

17.  Regular disclosure from auditors or staff should be required on net worth, financial interests, personal interests, family interests, related parties interests;  Conflict of interest should also include financial and/or any beneficiary of families of SAI staff with auditee or potential auditee;  There is need to emphasize the importance of responsibility to report unacceptable behaviour demonstrated by other staff, if noticed; Revised ISSAI 30: guidance requested

18.  Paragraph 11 [of the Exposure Draft] states that the SAI's individual code of ethics should be made public, but there is no requirement on how to communicate the SAI’s code;  Add more examples of monitoring controls [e.g.] "making spot checks/inspections on the grounds e.g., attendance, discipline during office hours, etc.;  To consider providing Guidance when a SAI auditor encounters instances of fraud; Revised ISSAI 30: guidance requested

19.  We note that paragraph 21 suggests that a SAI may apply policies on ethical misconduct and whistle-blowing as a monitoring control. We recommend that the proposed Code be expanded to provide some guidance on what a whistle-blowing structure within a SAI might look like. We also recommend that INTOSAI consider providing guidance on what form ethical conflict resolution might take;  Please provide information on the appropriate and detailed coordination mechanism between SAI and stakeholders (auditees, citizens, legislative bodies and others) in order to ensure and promote integrity. Revised ISSAI 30: guidance requested

20. Response of the Team: The draft is a compromise that tries to satisfy two opposing needs: to be a concise document and to provide application guidance and more details, as requested by the INTOSAI community. Further guidance can be developed by regional bodies or individual SAIs themselves. Revised ISSAI 30: guidance requested

21. Confidentiality vs Transparency Revised ISSAI 30: most interesting comments

22. Today: Approval by the Steering Committee of the INTOSAI Professional Standards Committee. Ultimate goal: revised ISSAI 30 approved by the Governing Board and by XXII INCOSAI in Abu Dhabi in December 2016. ISSAI 30 Revision – what now?

23. Revised ISSAI 30 Ready for approval?

24. Tak!