Professional Ethics of the Auditor

Principles under Law ZRU-677

• independence: the auditor is free from bias; where circumstances impair independence, the firm declines the engagement (Article 5);
• objectivity and integrity: priority of the public interest, impartiality, no conflicts of interest or pressure (Article 6);
• professional competence: maintaining knowledge at a level sufficient for quality services (Article 7); continuing professional development once a year (Article 29);
• confidentiality: information is not disclosed without the client's written consent, except in cases established by law (Article 8).

Code of Ethics

An audit firm must comply with the Law, the auditing standards and the Code of Ethics for Professional Accountants (Article 29).

Fundamental principles

• Integrity: being straightforward and honest in professional relationships
• Objectivity: not allowing bias or pressure to influence judgement
• Professional competence and due care
• Confidentiality: not disclosing information obtained during the audit
• Professional behaviour: complying with the law and avoiding actions that discredit the profession

Confidentiality in practice

The auditor gets access to contracts, cost data, salaries and the client base. The duty to protect this information is not limited to the term of the contract and does not end when the audit is completed.

Professional scepticism

A separate requirement concerns the mindset: the auditor presumes neither bad faith nor flawlessness on the part of management. An explanation is accepted when it is supported, not when it merely sounds plausible.