What does the Code of Ethics of Russian auditors provide?

The news of the impending visit of the auditor in some organizations is similar to 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 obey? 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 who has an appropriate document. Since he represents a socially important 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 to observe the interests of society. By conducting an audit of any object, the auditor must 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 its findings and recommendations, the auditor needs to rework a lot of information. In addition to practical knowledge, complete impartiality and objectivity are absolutely necessary here. No outside pressure, personal prejudice can affect his decisions and judgments. To exclude potentially competing factors, the auditor should avoid dealing with persons who may affect his work.

In carrying out its work, the auditor is obliged to take seriously and attentively to the work performed, observing the existing audit standards and the auditor's code of ethics. 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 account the world practice of audit and adjusted to the Russian business conditions, 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 violating the code of ethics is the personal relationship between the auditor and the management of the client company. The roots of these relationships are very different, and, of course, they must be excluded. It is also unacceptable for the auditor to participate in the audit of organizations where he has financial interests.

The competence of the auditor is ensured by his special education and passing of the 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 behavior of the auditor does not meet the requirements of the code of ethics. In this case a decision is made about 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.