CIA 1.2: Codes of Ethical Conduct for Professionals Flashcards
What is the primary purpose of code of ethical conduct for an organization?
to promote an ethical culture among professionals who serve others.
What are the secondary functions of a code of ethical conduct for an organization?
- Communicating acceptable values to all members,
- Establishing objective standards against which individuals can measure their own performance, and
- Communicating the organization’s values to outsiders.
What can enhance the effectiveness of code of ethical conduct?
the code should provide for disciplinary action for violators.
What can a code of ethical conduct establish?
it can help establish minimum standards of competence, but it is impossible to require equality of competence by all members of a profession.
How is cohesion and professionalism measured in terms of code of ethical conduct?
A measure of the cohesion and professionalism of an organization is the degree of voluntary compliance with its adopted code.
What are the typical components/elements of the Code of Ethical conduct?
Integrity, objectivity, confidentiality, competency
Define integrity
A refusal to compromise professional values for personal gain. Another facet of integrity is performance of professional duties in accordance with relevant laws.
Define objectivity
A commitment to providing stakeholders with unbiased information. Another facet of objectivity is a commitment to independence from conflicts of economic or professional interest.
Define confidentiality
A refusal to use organizational information for private gain.
Define competency
A commitment to acquiring and maintaining an appropriate level of knowledge and skill.
Extending beyond the definition of internal audit, what two essential components does the Code of Ethics have?
(1) Principles that are relevant to the profession and practice of internal auditing and
(2) Rules of Conduct that describe behavior norms expected of internal auditors (Introduction).
