Select one bolded section that interests you and read through it. Summarize what the rules cover. Is there anything missing that you feel should be added? Are there any guidelines that you would eliminate? What would be the biggest challenge an auditor might face following your chosen section? Be sure to respond to at least one of your classmates’ posts with new information about the topic, a clarifying example, and so on.
- The Correct Answer and Explanation is:
Sure! Let’s select the bolded section “Independence and Objectivity” from the Institute of Internal Auditors (IIA) Code of Ethics as the focus.
Summary of the Rules:
The “Independence and Objectivity” section of the IIA Code of Ethics requires internal auditors to perform their duties with honesty and impartiality, avoiding any conflicts of interest. Auditors must be independent from the activities they audit, in both fact and appearance, so their professional judgment is not compromised. Objectivity demands that auditors maintain an unbiased mental attitude and avoid relationships or situations that could impair their judgment.
What Might Be Missing?
While the section emphasizes avoiding conflicts of interest, it could benefit from more specific guidance on:
- Social media interactions between auditors and audit clients, which may create the perception of bias.
- Cultural and unconscious biases, which may impair objectivity even if the auditor believes they are being neutral.
- Artificial intelligence (AI) auditing tools – there is limited guidance on ensuring these tools also adhere to independence principles.
Any Guidelines to Eliminate?
The section is already concise and fundamental to ethical auditing. None of its core guidelines should be eliminated, as independence and objectivity are essential for credible audits. However, redundant phrases about “appearance” and “fact” could be streamlined for clarity.
Biggest Challenge for Auditors:
The greatest challenge is maintaining perceived independence in complex organizations. Even if auditors are technically independent, close relationships with departments, long-term assignments in the same area, or organizational pressures can lead stakeholders to question their objectivity. Auditors also face challenges resisting influence from management or senior executives who may attempt to control the audit scope or downplay negative findings.
Sample Classmate Response:
“Great summary! To add, an example of a threat to objectivity is if an auditor previously worked in the department they’re now auditing. Even if they’re unbiased, others might see a conflict. A rotation policy or assigning a different auditor can help maintain trust.”
Let me know if you’d like to base this on another section or tailor it to a specific course or company example.
