Internal audit independence and corporate governance iia. Emerging research opportunities jenny stewart griffith business school griffith university, queensland. Pdf a critical analysis of the independence of the. At that time, we determined guidance was needed to address. Internal auditing, independence, objectivity and integrity, audit committee, internal audit charter. The topics we examine are the organizational status of internal audit, the internal auditor s dual role as a provider of assurance and consulting activities, internal audit s involvement in risk management, outsourcing and cosourcing of internal audit.
Internal audit organizational placement and independence. Critical analysis of independence of internal audit. Peter drucker the internal audit ia profession has undergone remarkable growth since 2004, when we published the first edition of our guide to internal audit. Regression analysis revealed that internal audit independence had positive and significant effect on internal audit effectiveness at p value. This is equivalent to the assessment of internal audit independence within intosai gov 9140. By introducing circumstances in which internal audit functions, the paper especially emphasizes the challenges that internal auditors face in. The study concluded that internal audit independence was an important predictor of the effectiveness of the audit function in the county government. The study concluded that internal audit independence is crucial to the institution to help to. Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organisations operations.
The aim of this paper is to highlight the issue of independence and objectivity of internal auditors, which, given the place and role of internal audit in the system of corporate governance, is. The banks internal audit function must be independent of the audited activities. Independence and objectivity 233 the institute of internal auditors research foundation three components of professionalism, namely integrity, competence, and the use of due care are relevant to the internal audit profession. View critical analysis of independence of internal audit australia. In general, the internal auditors indicated that the audit committees need to be more proactive in internal audit reporting and chief audit executive personnel.