Academic journal article Journal of Accountancy

Internal Audit Independence

Academic journal article Journal of Accountancy

Internal Audit Independence

Article excerpt

To ensure their independence, internal auditors must carry out their work freely and objectively. They cannot subordinate their judgment on audit matters to that of others, and they should have the support of senior management, the board of directors and the audit committee. Use the following to determine internal audit independence.


* The director of internal auditing reports to an individual in the organization with sufficient authority to

* Promote independence.

* Ensure broad audit coverage.

* Ensure adequate consideration of audit reports.

* Ensure appropriate action on audit recommendations.

* The director communicates directly with the board, meets privately with the board annually and regularly attends and participates in board meetings.

* The board concurs in the appointment or removal of the director.

* The purpose, authority and responsibility of the internal auditing department is defined in a charter that is approved by senior management and the board of directors and assessed by the director of internal audit. Results of assessments are reported to senior management and the board. The charter should

* Establish the department's position within the organization. …

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