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Unit 4: Section 226, 314 and Code of Ethics

d. take all reasonable steps to protect the confidentiality of the audit results, data Notes
collected and the anonymity of interviewees.
4. Competency: Auditors shall:
a. engage only in those services for which they have the necessary knowledge, skills,
and experience, and not assign or subcontract any obligation of the audit program;
b. continually improve their proficiency and the effectiveness and quality of their
skills;
c. be consistent and accurate in their evaluations of data obtained through
documentation, interviews and observation;
d. strive to be complete in their evaluations and avoid any omissions;
e. separate fact from opinion clearly and concisely in their evaluations. Support for
auditor opinions must be derived from quantitative, measurable data;
f. serve the client in a conscientious, diligent, respectful and efficient manner;
g. assist clients with any post audit questions, such as recommendations or explanations
of results;
h. commit to honest, thorough and straightforward communication in the performance
of audit activities; and
i. willingly and openly share their collective knowledge and always be in the pursuit
of the truth and enhancement of health and safety in the construction sector.

4.3.7 Auditor Violation and Disciplinary Process

During the audit process, the Code of Ethics is the accepted practices that surround the auditor.
Violations of these are considered to be serious in nature, and will result in swift intervention
by the Company. In particular, the following sanctions may be administered to the auditor for
violations of the Code depending on the situation:
1. Formal letter advising the auditor of the violation, a restatement of the required standard,
and a stipulation to not have this reoccur,
2. A requirement to have retraining undertaken by the auditor,
3. Suspension of the auditor’s certification, and
4. Permanent removal of the auditor’s certification.
All sanctions against an auditor will involve a full investigation before any actions are taken.
The Company is not required to apply progressive discipline in situations which are serious in
nature and warrant severe penalties up to and including permanent removal of certification. As
part of the Code of Ethics, auditors will cooperate fully with an inquiry in the event of a breach
of this Code of Ethics.

Self Assessment

Choose the appropriate answers:
8. The most difficult type of misstatement to detect fraud is based on:
(a) Related party purchases
(b) Related party sales
(c) The restatement of sales
(d) Omission of a sales transaction from being recorded.

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