What does the Code of Ethics of Russian auditors provide?
The news of the forthcoming visit of the auditor tosome organizations like the announcement of the appearance of the memorable hero Gogol. Why? Is the auditor so terrible? Is there any justice for him, and what does he himself submit to? This article aims to dispel some doubts, although it is difficult to disclose all the secrets of communicating with auditors in a small amount. The full answer is intended to give a code of ethics for Russian auditors.
To begin with, the auditor is an official person,having the corresponding document. Since he represents a socially significant profession, it means that he is responsible to the society. Mutual relations of the subject and society, as a rule, are fixed legislatively. So at the end of 1996, the "Code of Professional Ethics for Auditors" appeared in Russia.
The most important task of the auditor is observance of interestssociety. By conducting an audit of any object, the auditor should act not only in the interests of the customer, but also for the benefit of the whole society. The Code of Ethics of the Russian auditors strictly enforces this rule. In defending the interests of the client in any dispute, the auditor must be firmly convinced of the absolute legitimacy of the protected interests.
To gain confidence in their findings andrecommendations the auditor needs to process a lot of information. In addition to practical knowledge, complete impartiality and objectivity are absolutely necessary here. No external pressure, personal prejudice can affect his decisions and judgments. To exclude potentially competing factors, the auditor should evade relationships with persons who may influence his work.
In performing its work, the auditor is required topay close attention to the work performed, observing the existing audit standards and the ethics code of the auditor. The whole process requires careful planning with constant monitoring of the work of subordinate specialists.
The Code of Ethics of Auditors of Russia is developed taking into accountworld practice of audit and adjusted to the Russian business environment, which will not be discussed here. Nevertheless, due to historical peculiarities, it is rather difficult for the Russian auditor to remain independent. There may be circumstances where the independence of the auditor is questioned. Qualification and firmness of the auditor should serve as a guarantee of his fidelity to duty.
Often the reason for violation of the code of ethicsbecome a personal relationship of the auditor and the management of the client company. The roots of these relationships are very different, and, of course, they should be excluded. It is also unacceptable for the auditor to participate in the audit of organizations where he has financial interests.
The auditor's competence is ensured by hisspecial education and passing of certification tests. The auditor has no right to provide professional services, being not sure of his competence. The Russian Code of Ethics of Auditors implies, by default, high competence of audit staff. In order to stay in good shape, every auditor is trained on a special program every year, with subsequent control of training, as well as knowledge of new norms arising in the course of activities.
It happens that the auditor's behavior is not respondingrequirements of the code of ethics. In this case, a decision is made on its professional unfitness. An example of this kind can be the simultaneous participation in two or more inspections. The actions connected with conducting forbidden activity or breaking the law and professional norms are also considered inadmissible.
In general, the provisions of the Code of Professional Ethics of Auditors are based on international ethics standards developed in the International Federation of Accountants.