Section 5110: The Fundamental Principles

Section 5110: The Fundamental Principles · Complied AI

(e)

Professional Behavior – to:

(i)

Comply with relevant laws and regulations;

(ii)

Behave in a manner consistent with acting in the public interest in all professional activities and business relationships relating to sustainability assurance clients; and

(iii)

Avoid any conduct that the sustainability assurance provider knows or should know might affect public trust in sustainability information that is subject to assurance.

R5110.2

A sustainability assurance provider shall comply with each of

the fundamental principles. 5110.2 A1 The fundamental principles of ethics establish the standard of behavior expected of a sustainability assurance provider. The conceptual framework establishes the approach which a practitioner is required to apply in complying with those fundamental principles. Subsections 5111 to 5115 set out requirements and application material in this Part related to each of the fundamental principles. 5110.2 A2 A sustainability assurance provider might face a situation in which complying with one fundamental principle conflicts with complying with one or more other fundamental principles. In such a situation, the practitioner might consider consulting, with: • Others within the firm. • Those charged with governance. • Institute • Legal counsel.

However, such consultation does not relieve the practitioner

from the responsibility to exercise professional judgment to resolve the conflict or, if necessary, and unless prohibited by law or regulation, disassociate from the matter creating the conflict. 5110.2 A3 The sustainability assurance provider is encouraged to document the substance of the issue, the details of any discussions, the decisions made and the rationale for those decisions.

SUBSECTION 5111 – INTEGRITY

R5111.1

A sustainability assurance provider shall comply with the

principle of integrity, which requires a practitioner to be straightforward and honest in all professional and business relationships. 5111.1.1 A1 A Chartered Accountant shall comply with the principle of honesty, which requires an accountant to be honest and upright as a citizen, and in the personal affairs. 5111.1.1 A2 A chartered accountant shall imbibe the ideal of Satyameva Jayate (Sanskrit: सत्यमेव जयते) which means 'Truth alone triumphs' , being part of the Mundaka Upanishad , and adopted as national motto of India. 5111.1 A1 Integrity involves fair dealing, truthfulness and having the strength of character to act appropriately, even when facing pressure to do otherwise or when doing so might create potential adverse personal or organizational consequences. 5111.1 A2 Acting appropriately involves:

(b)

Act diligently and in accordance with applicable technical and professional standards. 5113.1 A1 Serving sustainability assurance clients with professional competence involves the exercise of sound judgment in applying professional knowledge and skill when undertaking professional activities. 5113.1 A2 The knowledge and skills necessary for a professional activity vary depending on the nature of the activity being undertaken.

For example, in addition to the application of any technical

knowledge relevant to the professional activity, interpersonal, communication and organizational skills facilitate the practitioner’s interaction with entities and individuals with whom the practitioner interacts. 5113.1 A3 Maintaining professional competence requires a sustainability assurance provider to have a continuing awareness and understanding of technical, professional, business and technology-related developments relevant to the professional activities undertaken by the practitioner.

Continuing

professional development enables a practitioner to develop and maintain the capabilities to perform competently within the professional environment. 5113.1 A4 Diligence encompasses the responsibility to act in accordance with the requirements of an assignment, carefully, thoroughly and on a timely basis.

R5113.2

In complying with the principle of professional competence

and due care, a sustainability assurance provider shall take reasonable steps to ensure that those working in a professional capacity under the practitioner’s authority have appropriate training and supervision.

R5113.3

Where appropriate, a sustainability assurance provider shall

make sustainability assurance clients or other users of the practitioner’s professional activities, aware of the limitations inherent in the activities and explain the implications of those limitations.

SUBSECTION 5114 – CONFIDENTIALITY

R5114.1

A sustainability assurance provider shall comply with the

principle of confidentiality, which requires a practitioner to respect the confidentiality of information acquired in the course of professional and business relationships. A practitioner shall:

(b)

There is a professional duty or right to disclose or use, when not prohibited by law or regulation:

(i)

To comply with the requirements of peer review or quality review or such other review by the Institute;

(ii)

To respond to an inquiry or investigation by the Institute or other regulator;

(iii)

To protect the professional interests of a practitioner in legal proceedings or meet the ends of justice in legal proceedings when demanded by the court; 5114.3 A2 In deciding whether to disclose or use confidential information, factors to consider, depending on the circumstances, include: • Whether the interests of any parties, including third parties whose interests might be affected, could be harmed if the sustainability assurance client authorizes the disclosure or use of information by the sustainability assurance provider. • Whether all the relevant information is known and substantiated, to the extent practicable. Factors affecting the decision to disclose or use, the information include: o Unsubstantiated facts. o Incomplete information. o Unsubstantiated conclusions. • The proposed means of communicating the information. • Whether the parties to whom the information is to be provided or access is to be granted are appropriate recipients. • Any applicable law or regulation (including those governing privacy) in a jurisdiction where disclosure might take place and, if different, the jurisdiction where the confidential information originates.

R5114.4

A sustainability assurance provider shall continue to comply

with the principle of confidentiality even after the end of the relationship between the practitioner and a sustainability assurance client. When acquiring a new sustainability assurance client, the practitioner is entitled to use prior experience but shall not use or disclose any confidential information acquired or received in the course of a professional or business relationship.

SUBSECTION 5115 – PROFESSIONAL BEHAVIOUR

R5115.1

A sustainability assurance provider shall comply with the

principle of professional behaviour, which requires a practitioner to: