Organizational internal audit activity should be Independence and Objectivity
The internal audit activity should have a mandate through a written audit charter that establishes its purpose, authority, and responsibility to support its independence and objectivity within an organizationIndependence is as greatest perceive for the internal auditor when the consulting activity involved accounting system implementation or design, or business/accounting related issues such as business planning, mergers, cash management, budgeting and inventories. The independence is perceive to be least when the consulting activity involved non-accounting systems consulting, total quality management, pension cost review, evaluating external audit work, contract compliance, and reviewing performance of outside vendor services.Also Objectivity can be presumed to be impaired when internal auditors perform an assurance review of any activity for which they had any authority or responsibility within the past year or a period significant enough to i guitar strap locks nfluence their judgment or opinion. Internal auditors should not accept gifts or favors from others such as employees, clients or business associates.It should also be free from interference in determining the scope of its work, in performing its duties and in communicating the results. To maintain its independence, it should have “solid-line” reporting relationship to the audit committee with a “dotted-line” reporting relationship to a senior executive in the organization for administrative purposesObjectivity is a mental attitude which internal auditors should maintain while performing engagements. The internal auditor should have an impartial, un-biased attitude and avoid conflict of interest situations, as that would prejudice his/her ability to perform the duties objectively. The results of internal audit work should be reviewed before they are released in order to provide a reasonable assurance that the work has been performed objectively.
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