ORGANIZATIONAL ETHICAL VALUES

1
ORGANIZATIONAL ETHICAL VALUES

• The ethical rules that apply to the public
  sector are more transparent and more stringent
  than one would see in the private sector

GAOs David Walker, Internal Auditor, June 2003
2
ORGANIZATIONALETHICAL VALUES

• All auditors ought to be dedicated to a set of
  professional standards and core values
• We need to do what we think is right based on
  our professional and independent judgment
• We need to focus on substance and not form in
  a range of areas, including accounting policies
  and audit approaches
• Too many people are checking boxes and not
  turning on their brains
• Too many people are trying to figure out what
  is acceptable rather than what is
  appropriaterather than what is right

GAOs David Walker, Internal Auditor, June 2003
3
ORGANIZATIONAL ETHICAL VALUES

• Auditors need to observe the principles of
  serving the public interest and maintaining the
  highest degree of integrity, objectivity, and
  independence (GAGAS 3.34)
• The public interest is defined as the collective
  well-being of the community of people and
  entities the auditors serve.
• These principles are fundamental to the
  responsibilities of auditors.
• (GAGAS 1.19)

4
INTEGRITY

• GAGAS 1.23 Service and the public trust should
  not be subordinated to personal gain and
  advantage. Integrity cannot accommodate deceit
  or subordination of principle Integrity
  requires auditors to observe both the form and
  the spirit of technical and ethical standards
  Integrity also requires auditors to observe the
  principles of objectivity and independence.

5
INTEGRITY

• GAGAS 1.22 auditors need to perform all
  professional responsibilities with the highest
  degree of integrity

6
INTEGRITY

• Auditors need to be prudent in the use of
  information acquired should not use such
  information for any personal gain or in any
  manner that would be detrimental to the
  legitimate and ethical objectives of the audited
  entity.
• (GAGAS 1.22)

7
INTEGRITY

• GAGAS 1.21 Auditors need to make decisions that
  are consistent with the public interest in the
  program or activity under audit

8
INTEGRITY

• Auditors may encounter conflicting pressures
  from management of the audited entity, various
  levels of government, and others who rely on the
  objectivity and independence of the auditors.
• In resolving those conflicts, auditors are
  responsible for acting with integrity
• (GAGAS 1.21)