Quyết định 01/2014/QD-KTNN

DECISION

PROMULGATING STATE AUDITING STANDARD No.30 (SAS 30) - CODE OF ETHICS

THE STATE AUDITOR GENERAL

Pursuant to the Law on State Audit;

Pursuant to Resolution No. 916/2005/NQ-UBTVQH11 dated September 15, 2005 of the Standing committee of the National Assembly of the Socialist Republic of Vietnam on organizational structure of State Audit;

Pursuant to Resolution No. 917/2005/NQ-UBTVQH 11dated September 15, 2015 of the Standing committee of the National Assembly of the Socialist Republic of Vietnam on process of building and issuing state auditing standard problem;

At the request of the Director of Audit Policy and Audit Quality Control Department and the Director of the Legal Affair Department,

HEREBY DECIDES:

Article 1. SAS 30- Code of ethics is enclosed with this Decision

Article 2. This Decision takes effect after 45 days from its signing and replaces standards 01, 02, 03, 04, 05 and 06 issued with State Auditor General’s Decision No. 06/2010 / QD-State Audit Agency dated November 9, 2010 on promulgation of standard system of State audit.

Article 3. Heads of affiliates of the State Audit Office, related organizations and individuals shall be responsible for the implementation of this Decision. /.

SAS 30

CODE OF ETHICS
(enclosed herewith State Auditor General’s Decision No. 01 /2014/QĐ-State Audit Agency dated May 7, 2014)

INTRODUCTION

Concept and background of the standard

1. This standard is a comprehensive statement of principles which should guide ethics and conduct in the daily work of auditors. The independence, powers and responsibilities of the state Audit place high ethical demands on the state Audit, auditor and the staff they employ or engage for audit work. A code of ethics for auditors should consider the ethical requirements of civil servants in general and the particular requirements of auditors, including the latter’s professional obligations.

2. The formulation and promulgation of Code of ethics applicable to the Auditor is important, to ensure that all auditors acquaint themselves with the principles contained in the Code of Ethics and act accordingly.

3. Code of ethics is formulated based on the Lima Declaration of Guidelines on Auditing Precepts, the code of ethics of the International Organization of Supreme Audit Institutions (INTOSAI), other standards of INTOSAI, characteristics, requirements for management of officers, civil servants, public duties and operation of auditing in Vietnam; the rules of ethics plays an important role in orienting the other auditing standards in system of state audit standards.

4. The ethical conduct of auditors is one of the important conditions to ensure the credibility of the State Audit. Any deficiency in their professional conduct or any improper conduct in their personal life places the integrity of auditors, the SAI that they represent, and the quality and validity of their audit work in an unfavorable light, and may raise doubts about the reliability and competence of the SAI itself. The adoption and application of a code of ethics for auditors promotes trust and confidence in the state audit, auditors and their work.

5. Auditors are responsible for promoting and reinforcing confidence and credibility of state audit by adopting and applying the ethical requirements in the key words Integrity, Independence and Objectivity, Confidentiality and Trust.

6. Auditors should conduct themselves in a manner which promotes co-operation and good relations between auditors and within the profession. The support of the profession by its members and their co-operation with one another are essential elements of professional character. The public confidence and respect which an auditor enjoys is largely the result of the cumulative accomplishments relating to the value and principles of ethics of such auditor, past and present.

7. Auditors must ensure that all of their activities are transparent, fair, impartial and objective. All of their activities must fully comply with the regulations of professional ethics standards; be subject to inspection, control of National Assembly, competent State agencies and appreciation of the public.

Purpose of the Code of Ethics

8. Maintain the integrity, independence and objectivity of the auditor to ensure that the auditor’s conclusions and requests are authentic and reasonable.

9. Define qualifications, competence and professional skills of the auditor to ensure the completion of the audit tasks assigned.

10. Regulate professional discretion and confidentiality of auditing to ensure the accuracy and objectivity of the results, conclusions and request of the auditor; ensure the security in auditing of the auditor.

11. Stipulate the recruitment and career development to constantly improve the quality of auditors and ensure quality of auditing of the State Audit.

Scope of application of the standard

12. This standard is applied in all audit activities and tasks related to the audit activities of the Auditor. It is applied in all audits, in all phases of each audit and the auditor’s entire work.

13. This standard is also applicable in the recruitment, training, arrangement of position, appointment and career development for the auditor; in self-training and retraining of professional competence and formulation of the professional standards for each rank of the auditor.

14. affiliates the State Audit office, the leaders of the units, auditors and personnel who are employed or are asked to participate in the audit activities of the State Audit have the responsibility for self-study to gain an understanding of the standards and legal regulations applicable to Auditors and State Audit office.

The principle of use of terms in the standard

15. Terms used in this standard are defined as in the auditing standards promulgated by the State Audit office.

CONTENTS OF THE STANDARD

Integrity, independence and objectivity

Integrity

16. Integrity is the core value of a Code of Ethics. Auditors have a duty to adhere to the standards in and regulations of state Audit office in the course of their work and in their relationships with the staff of audited entities.

17. In auditing, auditors must be fair, truthful, forthright, honest to have a clear opinion; respect the facts without prejudice and bias.

18. Integrity requires auditors to observe both the form and the spirit of auditing and ethical standards. Integrity also requires auditors to observe the principles of independence and objectivity, make decisions with the public interest in mind, and apply absolute honesty in carrying out their work and in handling the resources of state Audit.

19. Auditors are not allowed to receive money, gifts and must avoid social relationships that can lead to concessions in the audit.

20. In auditing, auditors must consider all relevant factors and material factors to ensure the audit report includes the full range of important and necessary information ensure that all obtained evidences, recognition, evaluation, or request of auditors must be objective and true.

21. Auditors must be frank when making conclusions and requests for contents of an audit; must defend their opinion based on audit evidence and proper arguments without being affected by external interference.

22. Auditors must have proper behavior, without any act of harassment, causing difficulties and troubles to the audited unit.

Independence, Objectivity

23. In auditing, auditors must be independent and objective, without being affected by any material or spirit benefit during an audit and when giving their conclusions and requests. Auditors are required to be independent from the audited unit and other internal interest groups. Auditors must be also objective when choosing audit topics, as well as resolving the issues in auditing. The independence and impartiality are not only external form but also ensure the true independence of all audit activities.

24. When conducting an audit, auditors should comply with the laws, standards, processes and professional methods of auditing and other provisions of the state audit in auditing.

25. Auditors must report to the person taking charge of managing audit activities on any external intervention that may affect the objectivity and truthfulness in auditing activities.

26. When auditors use the work results of an expert, they must assess competence and results of such work’s performance of such expert; if auditors deem that the expert does not maintain independence and objectivity in carrying out the work, auditors must not use the results of such expert.

27. Auditors should report to competent persons as to not conduct an audit in the unit that they have economic ties or family relationships where they are not allowed to conduct the audit under the provisions of the Law on State Audit.

28. Auditors are supposed to control themselves not to get involved in the issues to which they are related in benefits affecting auditing. During the audit, if there is any limitation on the independence, objectivity, they must eliminate this limitation in all ways; if not, they must report promptly to competent persons for handling measures.

29. Self-interest, self-inspection, defense, family relations, other relations and threat may affect the independence. Accordingly, the independence of State Audit may be affected when: The auditor gets or may get economic benefits (directly or indirectly); The auditor is a former officer of the audited unit and took charge (directly or indirectly) on the work related to the contents of the audit of the State Audit; the auditor has business relationship or transaction which is outside the auditing but related to audited entity; The auditor is father, mother, adoptive father, adoptive mother, father-in law, mother-in-law, spouse, child, brother or sister of the head or chief accountant or the person in charge of accounting of the audited unit; or the auditor is threatened (real threat or feel threatened) to prevent objectivity and professional skepticism by the audited unit.

30. Auditors and state audit teams have the responsibility to preserve the independence by taking into consideration of actual circumstances of the risk of compromising the independence and adopting protective measures to eliminate or reduce the risk to an acceptable level. They may use two protective measures: (i) Using protective measures defined by law and professional standards; (ii) Creating a working environment and measures, specific techniques to eliminate the risk of compromising the independence of state Audit during the audit process.

Competence and Professional skill

Competence

31. Auditors have a duty to conduct themselves in a professional manner at all times and to apply law and professional standards in carrying out their work to enable them to perform their duties competently and with impartiality.

32. Auditors must have professional competence required to meet audit tasks assigned.

33. Auditors must possess a good understanding of the constitutional, legal and institutional principles and standards governing the operations of the audited unit; should understand the rules of law in the field of state management of the economy, public finances; on the management and use of budget funds and state assets in the fields assigned to conduct the audit.

34. Auditors should possess a good understanding of provisions of law and principles of auditing of state Audit; know and follow applicable auditing, accounting, and financial management standards, procedures and practice guidance at the request of accounting tasks.

35. Auditors should be trained under the program and training level in consistence with standards of each rank of auditors and under assigned field or sector of audit in accordance with the Law on State Audit.

Professional skill

36. Auditors should have professional skills to conduct an audit; have the ability to apply these skills in accordance with diversity and complexity of the assigned tasks.

37. Auditors must have the skills formulate auditing plans and programs; skills to obtain and analyze information, gather audit evidence to make conclusions and requests of the audited content or express an opinion of soliciting expertise when needed; skills to make audit report, presentation, discussion and other necessary complementary skills to serve the audit.

38. Auditors should use methods and practices of the highest possible quality in their audits can use means of modern technology in auditing activities.

39. Auditors should regularly maintain, update, supplement and improve their professional skills to use them in accordance with audit practical requirements in legal environment and continuous science and technology development. Auditors must be also required to have communication skills, social knowledge and behavior culture in order to fulfill well their tasks.

Professional secrecy and security

Professional caution

40. Auditors must carry out their work with the caution needed in all stages of the audit. Auditors should keep professional skepticism during the planning and conducting of the audit, they must always be aware that circumstances leading to the material misstatement in the accountability and reporting of the audited unit may always exist.

41. Auditors should use professional methods in accordance with the complexity of the audit; perform their tasks with high professional liability; be proactive in every situation, not make assessment, conclusions and requests hurriedly without fully understanding the matter or without any audit evidence meeting requirements for adequacy and appropriateness.

42. Auditors must have cautious attitude and conduct to get the highest possible quality in their audits; before making any assessment, recognition, conclusion and request, auditors must inspect and consider truthfulness, reasonableness, lawfulness of documents and papers, completeness and appropriateness of the audit evidence.

43. When using the results of the consultants or using the results of the independent Auditors, internal Auditors, the conclusion of the inspection ... Auditors should consider, inspect and use selectively and must bear responsibility for the authenticity of the data, documents and evidence related to the audit conclusion.

44. Auditors should only conduct an audit in which they have necessary knowledge, skills and experience. Whenever receiving an audit task, if auditors find that they do not fully meet the requirements of necessary knowledge, skills and experience, they must report to competent persons to withdraw from the audit team or ask for consultants.

Information security

45. Auditors have the responsibility to follow the provisions of the law on state secrecy and secrecy of audited unit of the information that auditors collected in auditing activities; should not disclose information in any form without permission of competent managers, unless obligated to disclose as prescribed by law.

46. Auditors are not allowed to use the information they obtained through auditing for purposes other than auditing duties, or other than obligations related to audit duties in order to get benefit to themselves, to others or to harm to the interests of other subjects.

47. If functional agencies ask auditors to provide information for the investigation of offence signs of audited units, auditors shall fully cooperate with functional agencies within their powers as prescribed by law.

Recruitment and professional development of Auditors

Recruitment and appointment

48. Auditors should only recruit individuals who are trained and experienced in necessary professional fields to meet the requirements for audit tasks. The recruitment, appointment, transfer, assignment of personnel should be carried out carefully as prescribed by the state Audit office.

49. State audit office issues the regulations and follows processes and procedures for the recruitment and appointment of auditors as prescribed by law; ensure that recruited, appointed persons are qualified for positions to which they are appointed.

50. Persons who are recruited and appointed to a rank or who wish to get promotion must pass admission examinations or pass a selection as prescribed by the law and the state Audit office.

Professional development

51. State Audit office issues the regulations and follows processes and procedures in order to regularly assess the qualifications, competence and to formulate plans for training and retraining for professional development for auditors.

52. State audit office issues regulations on professional standards for ranks of auditors in accordance with each field of auditing and regularly assesses standards to ensure that standards meet the requirements for auditing in practice.

53. State Audit office should implement appropriate policies and measures in each period for planning and organizing training and retraining courses and rank promotion examinations for auditors.

54. Auditors have a continuous obligation to update and improve their professional knowledge for the discharge of their professional responsibilities, and must participate in fully training courses organized by the State Audit office or courses to which auditors are assigned.

55. State Audit office encourages auditors to become a member and to participate in the activities of the professional organizations related to professional audit work in order to broaden their knowledge and skills for audit activities of state audit office in conformity with the legislation on auditing, management of civil servants and ethical standards of state Audit office.

56. Auditor shall endeavor to participate in professional development activities to fulfill the responsibilities and duties and protect their professional reputation and the state Auditor office.