Code of Ethics Applicable to Authorized Auditors

As stated on the OFAG code of Ethics for authorized auditors (2004), most authorized auditors

and accountants perform their duties and responsibilities in accordance with the professional

standards and ethical requirements developed by OFAG in the past. However, clients and their

parties have been complaining against some authorized auditors and accountants regarding the

unethical actions done by the practicing auditors and accountants.

Therefore, for these reasons, OFAG established a revised code of Ethics for authorized auditors

to be used as a basis in discharging their professional duties to the public, as follows:

Independence: a professional accountant, member of assurance teams and firms should be

independent in the performance of professional services for the client. Independence requires the

state of mind that permits the provision of an opinion without being affected by influences that

compromise professional judgment, allowing an individual to act with integrity, and exercise

objectivity and professional skepticism.

Besides it requires that avoidance of facts and circumstances that are so significant that a

reasonable and informed third party, including safeguards applied, would reasonably conclude a

firm's or a member of the assurance team's, integrity, objectivity or professional skepticism had

been compromised.

Professional competence and Responsibilities regarding the use of Non-accountants

professional accountants should refrain from agreeing to perform professional services which

they are not competent to carry out unless competent advice and assistance is obtained so as to

enable them to satisfactory perform such services. If a professional accountant does not have the

competence to perform a specific part of the professional service, technical advice may be sought

from experts such as other professional accountants, lawyers, actuaries, engineers, geologists,

and values.

Fees and commissions: professional accountants, who undertake professional services for a
client, assume the responsibly to perform such services with integrity and objectivity and in

accordance with the appropriate technical standards. That responsibilty is discharged by

applying the professional skill and knowledge which professional accountants have acquircd

through training and experience. For the service rendered, the professional accountant is entitled

to remuneration.

Professional fees should be a fair reflection of the value of the professional services performed

for the client, taking in to account the skill and knowledge required the level of training and

experience, the time necessary occupied by each person and the degree of responsibility.

A professional accountant should not pay a commission to obtain client nor should a commission

be accepted for referal of a client to a third party. A professional accountant should not accept a

commission for the referral of the products or services of others.

Activities incompatible with the practice of public accountancy: A professional accountant