Internal and External Auditor have ethics

 

What are Ethics?

 A sense of agreement in a society as to what is right and wrong. Ethics represent a set of moral principles,rules of conduct or values. Ethics apply when an individual has to make a decision from various alternatives regarding moral principles.

                   

Why Auditor Internal and External have ethics ?

 

The importance of the internal audit and external code of ethics are not just to make sure that internal or external audit professionals conduct ethical behavior, yet these codes also help to make sure that the services being offered to the organization are really added value to the success of the organization. It is vital concept for audit.

  

Principles

 

1) Integrity :

    To be straightforward and honest in all professional and business relationships.

 

2) Objectivity:

    To not allow bias, conflict of interest or undue influence of others to override professional or business judgments.

 

Objectivity.

In the auditing sense bias is associated with money and personal association, e.g., if possible gains of wealth, prospects of a better income, or personal relationships as with family or friends are involved, this may bias the auditor‘s work. There exist religious and cultural biases that

may also affect an auditor‘s work and these biases have been well studied.

 

3) Professional Competence and Due Care:

    To maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional service based on current developments in practice, legislation and techniques and act diligently and in accordance with applicable technical and professional standards.

 

4) Confidentiality:

     To respect the confidentiality of information acquired as a result of professional and business relationships and, therefore, not disclose any such information to third parties without proper and specific authority, unless there is a legal or professional right or duty to disclose, nor use the information for the personal advantage of the professional accountant or third parties.

 

5) Professional Behavior:

    To comply with relevant laws and regulations and avoid any action that discredits the profession.

 

 

Disclosure of Confidential Information

May be disclosed when disclosure is authorized by the client, required by law (eg evidence in

legal proceedings), where there is a professional duty or right to disclose (such as in a peer review quality control program) or to comply with technical standards or ethics requirements.

        

Professional Behavior that discredits the

profession example

In marketing and promoting themselves and their work, professionals should be honest and

truthful and not:

·         Make exaggerated claims for the services they are able to offer, the qualifications they

possess, or experience they have gained; or

·         Make disparaging references or unsubstantiated comparisons to the work of

others.