Code of professional ethics for state auditors

         Based on provision in Article 8, paragraph 2 of the State Audit Act (National Gazette 70/93, 48/95 and 105/99) and on provision in Article 9, paragraph 1, item 3 of the Statute of State Audit Office, following act was drawn up by the Auditor General:
 
 

 CODE OF PROFESSIONAL ETHICS FOR STATE AUDITORS
 
         The Code of Professional Ethics for State Auditors in Republic of Croatia was established on principles and rules of INTOSAI Code of Ethics for Auditors in Public Sector, approved at the XVI. INCOSAI in Montevideo, in 1998.
         Code consists of principles and rules with which certified state auditors, candidates for certificate of state auditors, and any individuals involved in the State Audit Office's work, express their standpoints on responsibilities regarding general public, audited entities and other members within the profession. When shaping the standpoints mentioned herein, the state auditors have considered voluntarily accepted obligations to self-discipline in accordance with the requirements deriving from every kind of legal provisions of auditing profession. Therefore, the legal regulations on state auditing represent the bare minimum of impact regarding professional responsibilities for the state auditors, while the principles and rules determined in this Code impose the obligation of unquestionable and respectable behaviour, even when this represents disregard of personal interests, and when not specifically required by laws. Conduct of state auditors in Republic of Croatia should be beyond reproach in all circumstances and at all times.
 
         The principles of the Code of Professional Ethics for State Auditors represent the basics for rules of their ethical and professional work.
 
         The rules of the Code of Professional Ethics for State Auditors are elaborated principles with which the acceptable ethical and professional work of the state auditors is defined.
 
 

 
         Principles of the Code of Professional Ethics for State Auditors reflect the standpoints of State Audit Office on responsibilities of state auditors, protection of public interest, honesty, independence, objectivity, and competence of state auditors.
 
 

 
         State auditor should throughout overall activities continuously approving their competence for responsible completion of tasks imposed by the State Audit Act.
 
 

 
         Service to public interest, activity in order to gain the confidence of public, and demonstrate professional consistency are obligations that state auditor should prioritise over interests of audited entities and over all personal interests.
 
 

 
         State auditor should perform accepted professional obligations sincerely, consciously and honestly. Integrity requires state auditor consistent application of ethical standards as well as of the principals of independence and objectivity in his work.
 
         State auditor has a duty to adhere to high standards of honesty and impartiality in the course of his work and in his relationship with the staff of audited entity. In order to sustain public confidence, the conduct of state auditor should be above any suspicion and reproach.
 

 
         In order to maintain the level of responsibility and honesty expected by the general public, it is indispensable for state auditor to achieve such level of independence that would guarantee impartial performance and possibility of objective judgement of the facts.
 
         State auditor should behave in a way that increases, or no diminishes, his independence.
 
         In all matters relating to the audit work, personal or external interests should not impair the independence of state auditor. For example, independence may be impaired by external pressure or influence on state auditor, prejudices held by auditors about individuals, audited entities, projects or programmes, personal or financial dealings which might cause conflicts of loyalties or of interests.
 
         State auditor should be objective in dealing with the issues and topics under review.
There is a need for objectivity and impartiality in all work conducted by state auditor, particularly in his reports, which should be accurate, fear and objective. Findings, opinions and conclusions in reports should be based exclusively on evidence obtained and assembled in accordance with the INTOSAI Auditing Standards.
 
         It is indispensable that state auditor is independent and impartial, not only in fact but also in appearance.
 
         To protect his independence, state auditor should avoid any possible conflict of interest by refusing gifts or gratitudes, which could influence on his independence and impartiality, or could be seen by others as negatively. Because of necessary actual and perceived political neutrality of the supreme audit institution, it is important that every state auditor maintain his independence from political influence in order to discharge his audit responsibilities in an impartial way.
 
         State auditor should not use his official position for private purposes and should avoid relationships which involve the risk of corruption or which may raise doubts about his independence, objectivity and impartiality.
 
 

 
         State auditor should conduct audit work with due professional care, competence and diligence, and has a continuous obligation to update and improve his professional skills and knowledges.
 
         State auditor should improve the methods and knowledge in order to continuously provide professional judgement on the matter of his work.
 
         State auditor should know and follow applicable auditing, accounting and financial management standards, policies, procedures and practices. Likewise, he must posses a good understanding of the legal and institutional principles and standards governing the operations of audited entity.
 
 

 

 
         Obligation to comply with rules of the Code of Professional Ethics for State Auditors derives from the provisions in Article 8 of the State Audit Act. Every state auditor should be prepared to justify departure from the rules of Code, if demanded by the Auditor General.
 

 
         Auditor General is authorized for the interpretation of the rules of Code of Professional Ethics for State Auditors.
 

 
         State auditor is allowed to undertake work only when sufficiently competent to perform, in order to express reliable judgement.
 

 
         State auditor should act honestly and consciously within proper authorities.
 

 
         In the conduct of the audit and similar activities, state auditor has a duty to adhere to basic postulates and generally accepted auditing standards.
 

 
         State auditor should not disclose information obtained in the auditing process and should not make them public without Auditor's General approval, except in accordance with relevant laws or if such information is required by proper government authorities.
 
         State auditor should not use information received in the performance of his duties as a means of securing personal benefit for him or for third parties. Neither should he divulge information, which would provide unfair or unreasonable advantage to other individuals or organizations, nor should he use such information as a means for harming others.
 

 
         State auditor is not allowed to act in professionally dishonest manner.
 
         State auditor has a duty to conduct himself in a professional manner and to sustain of any kind of conduct that could damage audit profession.
 
 
 
Klasa: 011-01/99-01/1
Urbroj: 613-01-01-99-1
 
Zagreb, October 20, 1999
 
                                                                                                        AUDITOR GENERAL
 
                                                                                                        Sima Krasic, B. Sc. Econ.