Internal Audit Objectivity – What Is It? And Why Is It IMPORTANCE?


Internal Audit Objectivity or objectivity is one of the internal audit codes of ethics that required the auditor to stay unbiased and highly discipline in all conditions. The auditor should eliminate or remove all conditions or factors that could make their professional judgment impair.

Two main factors that auditors need to consider to ensure that they objectively on their works are organizational independence and individual objectivity.

Breaking down:

To maintain objectivity, internal audits should have the right to have a direct report to the board of directors or audit committees. This includes audit plans, audit resources, audit reports, and other major factors that affect the internal audit.

If the internal auditor is limited by senior management to review the certain areas that they think there are risks that might happen, the objectivity of their work might impair. In this case, the internal auditor should report to the audit committee and the board of directors.

Sometimes, the objectivity of internal audit might impair not only the scope of audit but also the limitation on a resource such as equipment, personnel as well as individual interest.

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