Internal Auditing Standards
Institute of Internal Auditing Standards along with characteristics of the internal audit team
Compliance with standards
Compliance with Institute of Internal Auditing Standards has great influence on the effectiveness of internal auditing, therefore when complied with these standards the effectiveness of internal audit is expected to increase (Little, et al., N/A). All internal auditors are accountable for complying with the standards related to individual objectivity, proficiency, and due professional care. The Chief audit executives are accountable for the internal audit activity’s overall compliance with the standards (The Institute of Internal Auditors (IIA), 2017). Compliance with standards and an effective internal audit activity ensures
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Internal auditors are required to have individual objectivity that will allow them to perform their work diligently, and must have an impartial, unbiased mental attitude, and avoid conflict of interest (Stewart & Subramaniam, 2010). The Institute of Internal Auditing Standards, standard 1120- Individual Objectivity states that, “Objectivity is an unbiased mental attitude that allows internal auditors to perform engagements in such a manner that they believe in their work product and that no quality compromises are made. Objectivity requires that internal auditors do not subordinate their judgement on audit matters to others. Threats to objectivity must be managed at the individual auditor, engagement, functional, and organisational levels.” (The Institute of Internal Auditors (IIA), …show more content…
Internal auditors have to prove that their findings are of value to the organisation and earn a reputation in the organisation. Audit quality is a function of level staff expertise; reasonableness of the scope of service; and effective planning, execution and communication of internal audits. It can thus be argued that greater quality of IA work, understood in terms of compliance with formal standards, as well as a high level of efficiency in the audit’s planning and execution, the greater will be the improvement in the audit’s effectiveness (Njorege, 2012). Audit quality strongly influences audit effectiveness; better audit effectiveness, in turn, has a positive bearing on this
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