About Competency, Confidentiality and Professional Behavior in the Context of the Code of Ethics
Author:
University Professor, PhD. Ana MORARIU
JEL:
DOI:
Keywords:
responsibility, integrity, objectivity, professional rigors, due care
Abstract:
As it is well known, the Romanian professional body - The Chamber of Financial Auditors of Romania – adopted fully the IFAC Code of Ethics. This is the essential manual of the Romanian financial auditors, their guidance for conduct in their professional activity. For this reason, studying it in depth, represent a major objective both for the professional training programs and for the education curricula of the financial auditor trainees. The current article intends to present and to comment three important sections of the Code of Ethics, concerning the competency, confidentiality and professional behavior with practical applicability in their day to day activity. \r\n\r\nConsequently, the professional competence and the due care impose to the financial auditors obligations to respect the relevant laws and regulations, to avoid any activities which could bring the profession into disrepute, pointing out also the continuous professional education of the auditors, the improvement of their behavior and of the services provided, as well as taking their responsibilities at the highest level. A financial auditor should perform professional services in accordance with the relevant technical and professional standards. \r\n\r\nThe Confidentiality means to maintain the professional secret, of the information about the client business or about its employer obtained during performing the professional services as part of their audit engagement, the obligation to maintain the confidentiality remaining also after the completion of the relationship between the financial auditors and its client or employer. This principle should be rigorously observed because the financial auditors, during their engagement – have at their disposal all the data on the financial statements, equity, trademarks, intellectual property as well as the management style adopted. \r\n\r\nThe Professional behavior principle requires the professional auditors to observe the relevant laws and regulations and to avoid any actions which could bring the profession into disrepute. These mean actions which an informed and knowledgeable party, having access to all the relevant information, will conclude that will negatively affect the profession good reputation.\r\n