The Declaration of Independence

By marketsonline

Published | Friday, October 7th, 2016

Why is the need for both Independence and Objectivity within the Internal Audit function of an organisation so important?


Independence can be generally defined as freedom from dependence on, or influence or control by, another person, organisation, or state. Internal auditors work for, and primarily report to, the audited entity. For internal auditors, independence is the freedom from conditions that threaten the ability of the internal audit activity or the Chief Audit Executive (CAE) to carry out internal audit responsibilities in an unbiased manner. Independence permits internal auditors to render the impartial and unbiased judgments essential to the proper conduct of engagements.

Objectivity is defined in the IIA Standards as an unbiased mental attitude that allows internal auditors to perform engagements in such a manner that they have an honest belief in their work product and that the quality and integrity of their work is not compromised in any way.

This eBook examines these definitions and criteria required for both, and how these achieve the objection of corporate governance codes and global standards.

Moreover, it seeks to ask the following fundamental questions:

  • Why is independence so important for Internal Auditors
  • What are the benefits of having an independent internal audit function
  • What threats do Internal Auditors face in terms of independence and how can they overcome them

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