These fundamental principles apply to all members
of the professional bodies in some form and are the basis for the way auditors
carry out their work and in their dealings with other people. Students must
have a full understanding of these
of the professional bodies in some form and are the basis for the way auditors
carry out their work and in their dealings with other people. Students must
have a full understanding of these
principles and should conduct their work in
accordance with them.
The five fundamental principles are:
Integrity
Auditors should behave with integrity in all
professional, business and personal financial relatiotionships. Integrity includes
not merely honesty but fair dealing, truthfulness, courage, and
confidentiality. It is important that directors and management of an audit
client can rely on the auditors to treat the information obtained during the
audit as confidential, unless they have authorized its disclosure or it is
already known to a third party or the auditors have a legal right to disclose
it.
professional, business and personal financial relatiotionships. Integrity includes
not merely honesty but fair dealing, truthfulness, courage, and
confidentiality. It is important that directors and management of an audit
client can rely on the auditors to treat the information obtained during the
audit as confidential, unless they have authorized its disclosure or it is
already known to a third party or the auditors have a legal right to disclose
it.
Objectivity
Auditors should strive for objectivity in all
professional and business judgments.
professional and business judgments.
Objectivity is the state of mind which has regard
to all considerations relevant to the task in hand but no other. It presupposes
intellectual honesty and excludes bias, prejudice and compromise. Auditors must
give fair and impartial consideration to all matters relevant to their task and
discard all those that are not. Objectivity must not be impaired by conflicts
of interest.
to all considerations relevant to the task in hand but no other. It presupposes
intellectual honesty and excludes bias, prejudice and compromise. Auditors must
give fair and impartial consideration to all matters relevant to their task and
discard all those that are not. Objectivity must not be impaired by conflicts
of interest.
Independence
Auditors should try and ensure at all times that
they do not put themselves in a position where their objectivity might be
impaired or be seen to be impaired. It is important that the relationships
auditors develop with their clients do not become such that their judgment
becomes impaired or, most importantly, a third party may gain the impression
that the auditors’ objectivity has become compromised.
they do not put themselves in a position where their objectivity might be
impaired or be seen to be impaired. It is important that the relationships
auditors develop with their clients do not become such that their judgment
becomes impaired or, most importantly, a third party may gain the impression
that the auditors’ objectivity has become compromised.
Competency
Auditors should not accept or perform work which
they are not competent to undertake unless they obtain such advice and
assistance as will enable them competently to carry out the work. Members
should carry out their professional work with due skill, care, diligence and
expedition and with paper regard for the technical and professional standards
expected of them as members.
they are not competent to undertake unless they obtain such advice and
assistance as will enable them competently to carry out the work. Members
should carry out their professional work with due skill, care, diligence and
expedition and with paper regard for the technical and professional standards
expected of them as members.
Courtesy and consideration
Auditors should behave with courtesy and
consideration to all with whom they come into contact during the course of
performing their work.
consideration to all with whom they come into contact during the course of
performing their work.