Ethical Audit of the Use of Derivatives in Tax Strategies

This article examines auditors’ actions in response to ethical and legal risks associated with the use of derivative contracts, particularly in tax planning, as a key factor in ensuring transparency and the quality of financial reporting. The aim of this study is to define audit procedures, indicators, and information sources that enable an assessment of the ethical implications of using derivatives in tax strategies. The authors identify the ethical compliance requests for all parties involved in derivative transactions and propose specific actions of internal and independent auditors to ensure adherence to ethical standards and regulatory frameworks. The article highlights auditors’ responsibilities in detecting attempts to manipulate or conceal information, emphasizing key aspects of the audit process aimed at protecting against financial, currency, and commodity risks while ensuring transparency and legal compliance. A list of working documents is proposed to facilitate effective control, analysis, and verification, helping to prevent unethical or illegal transactions involving derivatives. The types of risks that the ethical use of derivative contracts in tax strategies can mitigate are also identified. Additionally, the article outlines the stages of tax planning in derivative transactions, emphasizing ethics, transparency, and legal compliance at each step. Special attention is given to the collaboration between auditors and management in uncovering the intentions and principles guiding the use of derivatives in tax strategies. The proposed questionnaire consolidates key information for auditors to assess the ethical aspects of risk hedging and highlights potential issues or risks related to tax obligation manipulation. Thus, systematic risk identification and structured audit procedures contribute to detecting attempts at information manipulation or concealment, ultimately ensuring the ethical and legal use of derivative transactions.