7. CORE PRINCIPLES FOR AUDIT PRINCIPALS
7.1. Application
The five Principles set out in this section apply to every Audit Principal.
Guidance
(1) These Principles are derived from the fundamental principles published in the Code of Ethics for Professional Accountants.
(2) In circumstances where an Audit Principal breaches a Principle, the AFSA may consider suspending or withdrawing the registration of the Audit Principal and if that person is the only Audit Principal, the Auditor on that basis
7.2. The Core Principles
7.2.1. Principle 1 – Integrity
An Audit Principal must be straightforward and honest in all professional and business relationships.
7.2.2. Principle 2 – Objectivity
An Audit Principal must not allow bias, conflict of interest or the undue influence of others to override professional or business judgements.
7.2.3. Principle 3 – Professional competence and due care
An Audit Principal must maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional services based on current developments in practice, legislation and techniques. An Audit Principal must act diligently and in accordance with applicable technical and professional standards.
7.2.4. Principle 4 – Confidentiality
An Audit Principal must keep confidential all information acquired as a result of professional and business relationships and specifically must not disclose any of that information to third parties without proper and specific authority, unless there is a legal or professional right or duty to disclose, nor may the Audit Principal use the information for the personal advantage of the Audit Principal or a third party.
7.2.5. Principle 5 – Professional behaviour
An Audit Principal must comply with relevant laws and regulations and must avoid any action that discredits the profession.