Principles, Rules and Incompatibilities in Ensuring the Audit Independence and Objectivity

Author:Francois MECHIN

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Keywords:code of ethics, norms, principles, constraints, conflict of interests, fees, independence

Abstract:
In his intervention the speaker presented the structure of the IFAC Code of Ethics with comments on the main provisions and insisting on their good understanding and implementation. In this context he made an important statement:\r\n\r\nThe IFAC Code of Ethics is an international regulation and it should be noted that the IFAC member bodies or the audit firms are accredited to adopt only the norms issued by IFAC, this giving to each country the possibility to develop its own Code of Ethics. This is not meant to be applied à la lettre, but it is meant to be changed according to each country. “\r\n\r\nAt the end of his presentation, three conclusions have been formulated. Firstly, everybody should know that this Code of Ethics has only 100 pages, it has been translated into Romanian and everybody should read it. The Code contains examples; the spirit of IFAC ethics and of IFAC Code of Ethics is described there. Secondly, the speaker pointed out that the European Directive on the statutory audit makes reference to the IFAC Code of Ethics and consequently, in order to apply the provisions of the Directive, the IFAC Code of Ethics should be applied. And thirdly, this Code of ethics and ethics as a separate subject should be taught in universities, in schools at each level of the accounting study. As International Education Standards state, ethics should be a compulsory subject to be studied. You cannot be accountant without being educated in this area also.

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