Principle: Maintain Objectivity
Shoaib Sheikh - CIA CISA
Experienced Internal Audit Professional | Internal Controls Specialist | Risk Management | GRC | IT Audits | Member of IIA, ISACA & IPA | Ex Grant Thornton | Ex New Kabul Bank
Principle: Maintain Objectivity
Internal auditors uphold objectivity by maintaining an impartial and unbiased attitude throughout their work, enabling them to make professional judgments and fulfill their responsibilities without compromise.
Key Components of Objectivity:
1.??? Individual Objectivity: Internal auditors must maintain professional objectivity in all aspects of internal audit services. This requires applying an impartial mindset and making judgments based on balanced assessments of relevant circumstances, while also being aware of and managing potential biases.
2.??? Safeguarding Objectivity: Internal auditors must recognize, avoid, or mitigate actual, potential, and perceived impairments to objectivity. This includes refraining from accepting gifts, rewards, or favors that may compromise objectivity, avoiding conflicts of interest, and not being unduly influenced by personal interests or the interests of others.
3.??? Disclosure of Impairments: If objectivity is impaired in fact or appearance, internal auditors must promptly disclose the details of the impairment to the appropriate parties. This includes disclosing impairments to the chief audit executive or designated supervisor, who then determines the appropriate actions to resolve the situation.
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4.??? Methodologies and Actions: The chief audit executive establishes methodologies to address impairments to objectivity, and internal auditors discuss impairments and take appropriate actions according to these methodologies. If an impairment affects the reliability of engagement findings, recommendations, or conclusions, the chief audit executive engages with relevant stakeholders to resolve the situation.
Chief Audit Executive's Role:
If the objectivity of the chief audit executive is impaired, they must disclose the impairment to the board. Additionally, if an impairment affects an internal auditor's ability to perform duties objectively, the chief audit executive discusses the impairment with relevant stakeholders and determines appropriate actions to resolve the situation.
Conclusion:
Maintaining objectivity is essential for internal auditors to uphold the integrity and credibility of their work. By remaining impartial and unbiased, internal auditors can provide reliable and independent assessments that support effective decision-making within organizations.