Page 181 - DCOM509_ADVANCED_AUDITING

Advanced Auditing

Notes 10.3.2 Ethical Principles in Government Auditing

Because auditing is essential to government accountability to the public, the public expects audit
organizations and auditors who conduct their work in accordance with Generally Accepted
Government Auditing Standards (GAGAS) to follow ethical principles. Management of the
audit organization sets the tone for ethical behaviour throughout the organization by maintaining
an ethical culture, clearly communicating acceptable behaviour and expectations to each
employee, and creating an environment that reinforces and encourages ethical behaviour
throughout all levels of the organization. The ethical tone maintained and demonstrated by
management and staff is an essential element of a positive ethical environment for the audit
organization. The ethical principles presented in this unit provide the foundation, discipline,
and structure as well as the climate which influence the application of GAGAS. Because the
information presented in this unit deals with fundamental principles rather than specific
requirements, this unit does not contain additional requirements.

Conducting audit work in accordance with ethical principles is a matter of personal and
organizational responsibility. Ethical principles apply in preserving auditor independence, taking
on only work that the auditor is competent to perform, performing high-quality work, and
following the applicable standards cited in the audit report. Integrity and objectivity are
maintained when auditors perform their work and make decisions that are consistent with the
broader interest of those relying on the auditors’ report, including the public.

Example: Individual auditors who are members of professional organizations or are
licensed or certified professionals may also be subject to ethical requirements of those professional
organizations or licensing bodies.

Notes The ethical principles contained in the following sections provide the overall
framework for application of GAGAS, including general standards, field work standards,
and reporting standards. Each principle is described, rather than set forth as a series of
requirements, so that auditors can consider the facts and circumstances of each situation
within the framework of these ethical principles. Other ethical requirements or codes of
professional conduct may also be applicable to auditors who conduct audits in accordance
with GAGAS.
The ethical principles that guide the work of auditors who conduct audits in accordance with
GAGAS are:
1. the public interest;
2. integrity;
3. objectivity;

4. proper use of government information, resources, and position; and
5. professional behaviour.

Self Assessment

Fill in the blanks:
8. ……………… is essential to government accountability to the public.

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