How does internal auditing maintain its independence & objectivity?

Maintaining objectivity can be one of the most demanding challenges for internal auditors. While they’re tasked with providing clear and unbiased assessments, their position within the organisation often complicates this responsibility. In this article, we’ll discuss why staying objective can be so challenging, explore practical strategies for cultivating unbiased reports and compare the role of internal auditors with that of external auditors.

Why is it difficult for internal auditors to remain objective?

It can be difficult to be independent and objective if you’re an internal staff member of an organisation. It’s common for internal auditors to get emotionally involved in the organisation and the people they are dealing with. They can get caught up in internal politics and it may become difficult to make impartial judgments and write impartial reports – they might even side with someone over an issue due to personal relationships, which can come through in threads of the audit reports.

How can internal auditors remain independent?

It’s important to practice the principle of sitting on the fence and staying objective. Asking yourself objective questions is key. Think – is the organisation doing what they said they would do? Then simply answering yes or no. It’s not up to you to decide what’s right, that’s up to the management team of the area that you’re looking at, the business unit, department, team, country or city.

Your only intent should be to answer the questions from a factual perspective. Carry this mindset into how you report your findings, and that will help you to establish the independence and objectivity in that process.

Practical strategies to remain independent include:

• Asking objective questions focused on facts rather than opinions.
• Avoiding personal or emotional involvement in the areas you audit.
• Reporting findings factually and clearly without personal bias.
• Maintaining a neutral mindset when reviewing evidence or speaking with staff.
• Keeping clear boundaries between your audit role, and your day-to-day responsibilities.
• Avoiding value judgments or recommendations that go beyond your role as an auditor.
• Seeking a peer review or second opinion if you feel your objectivity may be affected.

What makes external auditors independent?

External auditors can be unbiased because they’re not affected by internal politics, opinions, decisions or relationships. They come in as a fresh pair of eyes, and there’s no emotion involved, so they can do an observation of what’s happening in the organisation and really help you to identify how the business can grow and improve.

While internal auditors are part of the organisation and may face challenges in remaining objective, external auditors are completely independent from the business they assess. This independence helps them maintain neutrality and provide an impartial perspective.

Key differences between internal and external auditors include:

• Position within the organisation: internal auditors are employees of the business, while external auditors work independently and report to an external certification body or governing organisation.
• Potential for bias: internal auditors may be influenced by existing relationships or internal pressures. External auditors have no personal or professional ties to the business, which allows them to remain impartial.
• Purpose and scope: internal auditors focus on continuous improvement and ensuring internal compliance. External auditors verify that the organisation meets the requirements of the relevant ISO standard.
• Perspective: internal auditors understand day-to-day operations in detail, while external auditors provide an objective, outside view that can identify issues or opportunities that internal teams might overlook.

Together, both roles are valuable. Internal auditors help maintain and improve systems from within, and external auditors provide the assurance that those systems meet international standards of best practice.

How does Citation Group help?

Our team of Auditors are able to come into your businesses and independently assess if you’ve met your requirements. With over 30 years of experience, you can trust us to deliver an unbiased report and audit. If you’re seeking an independent audit from a trusted certification body, contact us today.