Integrity

The IFAC code of ethics (2005) s.110.1 explains integrity as follows:

The principle of integrity imposes an obligation on all professional accountants to be straightforward and honest in professional and business relationships. Integrity also implies fair dealing and truthfulness.


Integrity is therefore a steadfast adherence to strict ethical standards despite any other pressures to act otherwise. Integrity describes the personal ethical position of the highest standards of professionalism and probity. It is an underlying and underpinning principle of corporate governance and it is required that all those representing shareholder interests in agency relationships both possess and exercise absolute integrity at all times.



In terms of professional relationships, integrity is important for the following reasons:

Reliability
It provides assurance to colleagues of good intentions and truthfulness. It goes beyond any codes of professional behaviour and describes a set of character traits that mean a person of integrity can be trusted. For auditors such as Potto Sinter, integrity means not only observing the highest standards of professional behaviour but also maintaining the appearance of integrity to his own staff and also to the client.


Efficiency and Effectiveness
It reduces time and energy spent in monitoring when integrity and openness can be assumed (the opposite of an audit situation where the professional scepticism should be exercised). Costs will be incurred by Miller Dundas if colleagues feel that Potto Sinter is untrustworthy.


Promotion of control environment
It cultivates good working relationships in professional situations. It encourages a culture of mutual support that can have a beneficial effect on organisational effectiveness. John Wang’s professional relationship with Potto is very important to Miller Dundas. It is important, therefore, that Potto has personal integrity.



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