Certified Government Auditing Professional (CGAP) Practice Exam

Which statement about ethics pronouncements from standard-setting bodies is true?

1. IFAC has a single Code of Ethics, no matter how the accountant is employed

2. INTOSAI has issued a Code of Ethics but separates it from Auditing Standards

3. The IIA, IFAC, and INTOSAI cite the need for political neutrality in their explanations

4. The Code of Ethics includes requirements for specific continuing education hours

The correct answer is: INTOSAI has issued a Code of Ethics but separates it from Auditing Standards

In the context of ethics pronouncements from standard-setting bodies, stating that INTOSAI has issued a Code of Ethics but separates it from Auditing Standards is accurate. INTOSAI, the International Organization of Supreme Audit Institutions, recognizes the need for a dedicated Code of Ethics for public sector auditors that emphasizes integrity, objectivity, and professionalism. This Code of Ethics is separate from auditing standards because it addresses the ethical considerations specifically relevant to the conduct of public auditing, which can differ from the technical guidance provided in auditing standards. This separation allows auditors to focus on ethical dilemmas that may not be covered under standard auditing procedures, ensuring that they maintain a high level of professional conduct and accountability in their roles. The distinct status of the Code underlines the importance of ethics in public sector auditing, independent of the technical aspects governed by the auditing standards themselves.