Internal Audit Analysis
and reports the results of an audit in accordance with generally accepted auditing standards. AICPA (2002) states that independence can be generally defined as freedom from dependence on, or influence or control by another person, organization, or state. For internal auditors, independence is the freedom from conditions that threaten the ability of the internal audit activity or the chief audit executive to carry out internal audit responsibilities in an unbiased manner.
Without independence, internal audit simply becomes a part of the management team, losing its ability to offer a fresh perspective (Chebet, & Fiona, 2009). Independence of internal audit is considered by Cohen, & Sayag, (2010) as a determinant of internal audit effectiveness.
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For example, Mihret et al, (2010) noted that ineffective management controls are one of the contributors to ineffective internal auditing, because it is most of the times adverse to the objectives of the organization. Similarly, internal audit can be adversely affected by the lack of support from senior …show more content…
This is the why an internal organization is a critical determinant of the success of internal audit effectiveness in an organization. Similarly, for an internal audit system to be effective, it is imperative that the head of the internal audit unit make frequent reports to the management on the internal audit activities, responsibility, authority and performance relative to their plan. Consistency in the documentation of audit work, quality reporting and proper implementation of the recommendations of the internal auditors will enhance internal audit significantly.
One of the determinants of effectiveness in internal audit is the agreement between the auditing work and the goals that are set by the management of the organization, management support for the internal audit staff and the skills of the internal auditors (Arena & Azzone, 2009; Badara & Saidin, 2013). Scholars have established that there is a strong relationship between independence and effectiveness in internal auditing; the degree of independence of the auditor is commensurate with the level of his effectiveness (Cassandra et al
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