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PRINCIPLES OF AUDITING[1]

Ethical Conduct

These the foundation of professionalism requires: trust, integrity, confidentiality and discretion; these are essential to auditing.

 

 

Fair Representation

The obligation to report truthfully and accurately. Audit findings, audit conclusions and audit reports shall truthfully and accurately reflect the audit activities. Significant obstacles encountered during the audit and unresolved diverging opinions between the audit team and the auditee shall also be reported.

 

 

Due Professional Care

The application of diligence and judgement in auditing. Auditors shall exercise care in accordance with the importance of the task they perform, and the confidence placed in them by audit clients and other interested parties. Having the necessary competence is an important factor.

 

 

Independence

The basis for the impartiality of the audit and objectivity of the audit conclusions. Auditors are independent of the activity being audited and are free from bias and conflict of interest. Auditors maintain an objective state of mind throughout the audit process to ensure that the audit findings and conclusions will be based only on the audit evidence.

 

 

Evidence based approach

The rational method for reaching reliable and reproducible audit conclusions in a systematic audit process. Audit evidence shall be verifiable. In many cases it is based on samples of the information available, since an audit is conducted during a finite period of time and with finite resources. The appropriate use of sampling is closely related to the confidence that can be placed in the audit conclusion.

 

 

Confidentiality

The audit process often involves audit evidence that is confidential to the auditee and the auditor shall respect the confidentiality of all audit evidence and findings.

 

 

Privacy

The audit process shall be conducted in accordance with applicable privacy legislation.

 

Corporate Structure

The corporate structure has been kept simple and logical, so everyone can understand the division of duties with absolute clarity.

 

[1] Standands Australia, "Standard Australia 4655: Fire safety audits", 2nd Ed., Sydney, 2005.