UNIVERSIDAD AUTONOMA DE NUEVO LEON.
FACULTAD DE CONTADURIA PÚBLICA Y
ADMINISTRACION.
Auditoria Financiera
Prof: Irving Gonzales Martinez
Óscar Yusef Rodríguez Arredondo 1900425
ESSAY ON AUDITORS’ ETHICS
On this essay I will talk the auditor ethics that refers to the responsibility of the same to the public,
towards clients and colleagues and the maximum and minimum levels of conduct that it must possess.
Responsibilities to colleagues.
The integrity of internal auditors establishes trust and thus provides the basis for reliance on their
judgement,
The code of ethics states that principals and expectations governing the behavior of individual and
organizations in the conduct of internal auditing. It describes the minimum requirements for the conduct
and behavioral expectations rather than specific activities.
Its purpose is to promote the ethical culture in the profession of internal auditing.
Internal auditing is an independent, objective assurance and consulting activity designed to add value and
improve an organization's operations. It helps an organization accomplish its objectives by bringing a
systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control,
and governance processes.
Internal auditors exhibit the highest level of professional objectivity in assembling, evaluate and
communicate information about the activity or process to be examined. The internal auditors make a
balanced assessment of all circumstances relevant and form their judgments without being unduly
influenced by their own interests and by other people.
A code of ethics is necessary and appropriate for the internal auditing profession, as it is based on the
confidence placed in its objective assurance about risk management, control, and direction. The
Institute's Code of Ethics covers much more than the definition of internal auditing, including two
essential components:
1. Principles that are relevant to the profession and practice of internal auditing.
2. Rules of Conduct that describe the standards of behavior expected to be observed by internal auditors.
These rules are an aid to interpreting the Principles in practical applications. It is intended to guide the
ethical conduct of internal auditors.
An ethical dilemma is a situation that a person faces, and in which they decide about the appropriate or
appropriate conduct. Generally, ethical dilemmas include situations in which the well-being of one or more
individuals is affected by the results of the decision.
Many professional and auditing organizations have issued principles and standards of ethics in the form
and name of Codes of Ethics, which are a set of rules of conduct that the organized profession of public
accountant has decided to adopt. Before society, they are autonomous rules and before the individuals
that are grouped in the professional institution, they constitute mandatory rules based on the legal bond
that unites them.
The ethics in conducting audit work is the backbone of the development of this function, as evidenced by
the fact that audit-related institutions have been interested in this matter for many years. Even before you
start paying more attention to public morals. The evidence that has a special interest in the ethics of the
auditor is a different tool that is used to regulate the interests of the auditors, among them we can find
codes of ethics, statements, guidelines, etc.
The International Standards for the Professional Practice of Internal Auditing recognize the importance of
regulating the work of internal auditing, including both operational and administrative aspects of the audit
exercise as well as ethical elements.
The main conclusion of the research is that ethics has been a constant concern in various instance of
public management that have led to the drafting of letter and other international instruments with
commitments in this matter, being of special interest the ethics of government auditor and the SAI official,
which is manifested in the multiple standards, codes, declaration, and other instruments that tend to
materialize this ethical duty.
It can be affirmed that the SAI official and the government auditor must have an impeccable and
unquestionable conduct, which leads to a great demand of respect for the cuties and ethical principles,
beyond the levels that are required of a public official or common citizen, the auditor is the example of
righteousness.
CODE OF ETHICS PRINCIPALS
ENFORCEMENT AND COMPLIANCE
This Code of Ethics applies to individuals and entities that provide internal audit services. For members of
the Institute and candidates who have obtained or are going to obtain a professional certificate from the
Institute, noncompliance with the Code of Ethics will be evaluated and managed in accordance with the
Statute and Administrative Regulations of the Institute.
In the case of Institute members and those who have received or are candidates to receive professional
certifications from the Institute, non-compliance with the Code of Ethics will be evaluated and administered
in accordance with the Institute's Statutes and Administrative Regulations. The fact that a particular conduct
is not contained in the Rules of Conduct does not prevent it from being considered unacceptable or
discrediting, and consequently, it may lead to disciplinary action against the member, holder of a certification
or candidate for the same.
Internal auditors are expected to apply and adhere to the following principles:
• Integrity
The integrity of internal auditors establishes trust and, consequently, provides the basis for trusting
their judgment.
• Objectivity
Internal auditors exhibit the highest level of professional objectivity in gathering, evaluating, and
communicating information about the activity or process to be examined. Internal auditors make a
balanced assessment of all relevant circumstances and form their judgments without being unduly
influenced by their own interests or by others.
• Confidentiality
Internal auditors respect the value and propriety of the information they receive and do not disclose
information without proper authorization unless there is a legal or professional obligation to do so.
• Competition
Internal auditors apply the necessary knowledge, skills, and experience when performing internal audit
services.
All auditors according to the ethical standards should:
•
report all detection of fraud, criminal breaches in the company (if found out), money laundering, and
other mischief to Management and the respective regulatory authorities of that country.
•
remain or seen to be independent, incorruptible, have a good sense of judgement if discovered
situations during their audit assignments or during their normal course of work.
•
develop suitable sample sizes for each and every company they audit in order to maintain high quality
auditing and the higher possibilities of discovery of gaps in internal controls and weak business
processes.
•
exercise good rotation of audit teams when planning for audit assignments, so that the audit teams do
not become ‘too friendly’ or ‘too familiar’ with the the management and staff of the companies they
audit.
EXAMPLES
1. In these times where corruption has become part of the daily life of many organizations, whether public
or private, the forensic anti-fraud audit is the tool that could mitigate this damage. This is a consideration
in which Juan Iván Rogers Harper and Alvin Alberto Ibarra Soto, president and secretary of the
International Institute of Anti-Fraud Forensic Auditors agree, who referred to this issue when visiting the
Listín Diario with the founder and president of the Latin American Association of Investigators of Fraud
and Financial Crimes, Plácido Mercedes Ortiz.
These specialists explain that the forensic anti-fraud audit begins when there are suspicions about the
financial statements. “This is a prevention issue to combat scourges such as fraud, corruption and money
laundering. This is a more comprehensive CPA training,” explains Rogers Harper. The forensic anti-fraud
audit guarantees that the material truth is carried out, that due process is achieved and that finances are
in order and transparent, which is why around 25 accountants have specialized in these matters in the
country. “What we can do now with this type of audit is use it preventively. We can now go to an
organization with all that knowledge, not with the traditional that they teach accountants, but go further,
says Rogers. It expresses that those who are awarded this certification are people who are committed to
ethics, honesty and responsibility at a higher level. “Of course, corruption cannot be eradicated, what can
be mitigated.
This is where our objective lies both in government and in private companies, Rogers points out. IN
POINTS Fraud in public and private Surprisingly, these specialists assure that worldwide there is more
fraud in the private sector than in the public sector, although in the government these cases are more
officially known. “What happens is that the uncompetitive businessman who wants to achieve goals very
quickly, takes his objectives to a political party and there he enters the government and takes his product
to the governmental sphere at a higher price and there the problem arises. Corruption is nothing more
than the export of a behavior that is born in something particular”, argues Rogers.
2. More than 500 irregular cases. The Office of the Comptroller General of the Republic, as part of the
Vaccination Management Control Plan against COVID-19, detected 506 cases in which vaccination
problems are noted in different regions of the country. The largest number of cases were registered in the
Arequipa region, where the Comptroller's Office evidenced that 283 health workers who had a valid
license in various establishments of the Arequipa Healthcare Network of EsSalud were vaccinated on a
preferential basis. Additionally, 23 cases were identified corresponding to health professionals who no
longer had an employment relationship with the health facilities where they received the COVID-19
vaccine. Another region with the highest number of reported cases is Ucayali, where it was revealed that
107 people appeared on the list to receive the Sinopharm vaccine against COVID-19 even though they
were doing remote work, administrative work, or that they no longer had an employment relationship with
health establishments, among others. In the Huancavelica region, a total of 43 people who were
vaccinated against COVID-19 were identified in three control reports, of which 37 are professionals who
have no employment relationship with the Huancavelica Departmental Hospital. In this region, the
vaccination of four officials belonging to the Superior Court of Huancavelica and of two professionals
working for the Regional Government of Huancavelica was also detected. The Comptroller's auditors
also detected that 20 people were vaccinated at the Antonio Lorena Hospital in Cusco, who had no
employment relationship with said hospital and even some cases had no employment relationship for
three years.
BIBLIOGRAFIAS
https://na.theiia.org/standards-guidance/mandatory-guidance/Pages/Code-of-Ethics.aspx
https://www.investopedia.com/terms/g/gaas.asp
https://www.quora.com/According-to-ethics-for-accountants-and-auditors-what-are-norms
https://iaiperu.org/codigo-de-etica/