Independence and objectivity
Independence is about the function’s position; objectivity is about the auditor’s mindset.
Independence means internal audit is free from conditions that threaten its ability to carry out its work without bias, mainly through its reporting line to the board. Objectivity is the individual auditor’s impartial, unbiased mindset. Impairments, such as auditing work you were recently responsible for, must be avoided or disclosed.
On the exam
If an auditor recently worked in the area under review, the best answer is usually to assign someone else, or disclose the impairment.
Related terms
- Chief audit executive (CAE)The person who leads the internal audit function.
- Three lines modelHow governance, management and internal audit share roles in managing risk.
Test yourself with today’s question of the day.