Code of Professional Ethics
Internal Audit Service
Joint-Stock Company National Company Kazakhstan TemirZholy
Introduction
The purpose of the “Code of Ethics” of the Internal Audit Service of the Joint Stock Company National Company Kazakhstan TemirZholy (Internal Audit Service) is to maintain the ethical standards of the profession of the internal auditor.
Internal audit is an activity to provide independent and objective guarantees and consultations aimed at improving the activities of the organization. Internal audit helps the organization achieve its goals using a systematic and consistent approach to assessing and improving the effectiveness of risk management, control and corporate governance processes.
The Code of Ethicsis important and necessary for the profession of the internal auditor, which is based on trust in the provided disinterested guarantees in the field of risk management, control and corporate governance. The effect of the “Code of Ethics” of the Internal Audit Service goes beyond the definition of internal audit and includes two important components:
1. Principles relating to the profession and practice of internal audit;
2. Rules of conduct, which determine the standards of conduct of internal auditors. These rules help to interpret and apply professional principles in practice and designed as an ethical guide of internal auditors.
The “Code of Ethics” of the Internal Audit Service is a guide for internal auditors. “Internal auditors” are the employees of the Internal Audit Service who provide relevant services within the definition of the profession of the internal auditor.
Scope and application
This “Code of Ethics”is applicable to the head and employees of the Internal Audit Service.
The Audit Committee will evaluate and respond to the violation of the “Code of Ethics” by the employees of the Internal Audit Service. The fact that a particular case of behavior is not mentioned in the rules of conduct does not exclude the possibility that it can be unacceptable and, therefore, the employee of the Internal Audit Service may be subjected to a disciplinary action.
Chapter 1. General Provisions
1. The Code of Ethics is a detailed list of principles relevant to the profession and practice of internal audit, and the rules of conduct that determine the standards of conduct of internal auditors. These rules help to interpret and apply professional principles in practice and are intended as an ethical guide of the internal auditor.
2. The Code of Professional Ethics is important and necessary for the profession and practice of the internal auditor, which is based on trust in the provided objective guarantees in the field of risk management, control and corporate governance.
Chapter 2. Principles
Internal auditors should adhere to the following principles:
Honesty.
The honesty of an internal auditor is the foundation upon which the credibility of the auditor’s opinion is based.
Objectivity.
Internal auditors demonstrate the highest level of professional objectivity in the process of collecting, evaluating and communicating information about the audit object. Internal auditors make a balanced assessment of all relevant circumstances and in their judgments are not affected by their own interests or the interests of others.
Confidentiality.
Internal auditors respect the ownership of the information they receive in the course of their activities and do not disclose information without proper authority, unless disclosure of such information is dictated by legal or professional responsibilities.
Professional competence.
Internal auditors apply the knowledge, skills and experience necessary to provide internal audit services.
Chapter 3. Rules of Conduct.
Honesty.
Internal auditors:
1) Must be honest, conscientious and responsible when performing their work;
2) Should act within the law and, if required by law or professional standards, disclose relevant information.
3) Should not knowingly participate in actions or activities that discredit the profession of internal auditor or their organization.
4) Must respect the legally and ethically justified goals of their organization and contribute to their achievement.
Objectivity.
Internal auditors:
1) Should not participate in any activity that might damage their impartiality or be perceived as causing such damage. This also applies to activities and relationships that may conflict with the interests of the Company;
2) Should not accept anything as a gift that might damage their professional judgment or be perceived as causing such damage;
3) Should disclose all material facts known to them which, while not being shown, may distort the reports on the object of the audit.
Confidentiality.
Internal auditors:
1) Should be reasonable to use and preserve the information obtained when performing their duties.
2) Should not use the information in their personal interests or in any other manner that is contrary to the law, internal documents of the Company or which may damage the achievement of the legally and ethically justified goals of the Company.
Professional competence.
Internal auditors:
1) Should participate only in those tasks, for implementation of which they have sufficient professional knowledge, skills and experience.
2) Should provide internal audit services in accordance with the requirements of the International Standards of Internal Audit, and the regulatory documents of the Company.
3) Should continuously improve their professional skills, as well as the quality of the services provided.