Analyze policies that promote objectivity of audit

internal auditor objectives
Spread the love

Internal auditing is an essential function that provides assurance and consulting services to an organization. It helps to evaluate the effectiveness and efficiency of the organization’s governance, risk management, and control processes. However, internal auditing can only add value to the organization if it is performed with objectivity and independence.

Objectivity is the ability of internal auditors to perform their work without bias, conflict of interest, or undue influence from others. Independence is the freedom of internal auditors from conditions that threaten their ability to carry out their responsibilities in an impartial manner. Both objectivity and independence are fundamental principles of the International Standards for the Professional Practice of Internal Auditing (the Standards).

However, achieving and maintaining objectivity and independence can be challenging in practice. Internal auditors may face various pressures or influences from within or outside the organization that could compromise their professional judgment or integrity. For example, internal auditors may be subject to:

– Management interference or manipulation
– Personal or organizational interests or relationships
– Inadequate resources or support
– Lack of competence or training
– Conflicting roles or expectations
– Cultural or ethical issues

Therefore, it is important for internal auditors and their stakeholders to analyze and implement policies that promote objectivity and independence of internal auditing. Such policies should:

– Define the purpose, authority, and responsibility of internal auditing in accordance with the Standards and the Institute of Internal Auditors (IIA) Code of Ethics
– Establish the reporting relationship and communication channels between internal auditing and the board or audit committee
– Ensure that internal auditing has sufficient resources and access to information and personnel to perform its work effectively
– Provide for periodic external quality assessments and internal self-assessments of internal auditing performance and conformance with the Standards and the Code of Ethics
– Encourage continuous professional development and certification of internal auditors
– Protect internal auditors from retaliation or adverse consequences for reporting issues or concerns
– Disclose any impairments or potential impairments to objectivity or independence to the appropriate parties
– Monitor and evaluate the impact of any changes in the organization’s structure, operations, or environment on internal auditing’s objectivity and independence

By analyzing and implementing policies that promote objectivity and independence of internal auditing, internal auditors can enhance their credibility and trustworthiness as a valuable partner to the organization. They can also provide more reliable and relevant assurance and consulting services that contribute to the achievement of the organization’s objectives.