Author: Mariana Herrera Vanegas
The statutory auditor is a professional accountant who is responsible for overseeing compliance with the laws, the bylaws and the decisions of the management bodies of commercial companies. The Technical Council of Public Accounting (CTCP), as the technical-scientific guiding body of the profession and standardizer of accounting, financial reporting and information assurance standards, has issued several concepts on the functions and ethical principles of the statutory auditor. Concept 2023-0329 provides a general summary of all the considerations that have been made regarding the functions and ethics of the statutory auditor.
The functions of the statutory auditor are set forth in Article 207 of the Colombian Code of Commerce. These functions are:
– To verify the operations of the company, its compliance with the laws, bylaws and decisions of the administrative bodies.
– To give timely account to the assembly or board of partners of the irregularities observed in the development of its functions.
– Collaborate with the governmental entities and with the inspection and surveillance agencies under the terms established by law.
– To ensure that the accounting of the corporation is kept in accordance with the legal requirements.
– Inspect the assets of the corporation and ensure their conservation and security.
– To give instructions, make inspections and reports to the officers of the corporation when he/she deems it convenient.
Regarding ethical behavior, auditing procedures in Colombia in terms of ethics are framed by Law 43 of 1990 in chapter four under the title «professional code of ethics». It is the obligation of all public accountants in Colombia to know the ethical principles of the profession when rendering services related to accounting science. These basic principles are:
– Integrity: The statutory auditor must act with honesty and honesty in the exercise of his duties.
– Objectivity: The statutory auditor must be impartial and must not allow his personal or professional interests to interfere in the performance of his duties.
– Professional competence and diligence: The statutory auditor must have the necessary knowledge and experience to perform his duties properly.
– Confidentiality: The statutory auditor must keep secret the information he/she learns in the performance of his/her duties.
– Professional conduct: The statutory auditor must act in an ethical and professional manner in the performance of his duties.
The role of the statutory auditor in Colombian corporations is of utmost importance, as he/she is responsible for ensuring strict compliance with laws, bylaws and management decisions, while ensuring integrity and ethics in the practice of accounting and auditing. In this context, the Technical Council of Public Accounting (CTCP) plays an essential role by providing technical guidance and issuing concepts that address functions, laws, ethical principles and professional behavior that should govern public accountants in their various facets.
The functions of public accountants are clearly defined by law, and their ethical behavior is based on fundamental principles that ensure integrity and professionalism in their work. Together, these elements are fundamental to promote transparency and reliability in business management in the country, thus contributing to the strengthening of confidence in the financial and accounting system of Colombian companies.
Source: Concept 2023-0329 CTCP
