How Internal Auditors at UK Remain Independent and Objective
To enable an internal auditor to accomplish his or her objectives and responsibilities to UK, auditors need to have independence and objectivity in their relations to management. This is stated in UK's Internal Audit Charter, which generally defines the purpose, authority, and responsibility of the internal auditing function.
By definition, internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. Independence is an attribute of the Internal Audit department, and objectivity is an attribute of the auditors themselves.
To provide for the independence of the Internal Audit department, its personnel report to the director of Internal Audit, who reports functionally to the Audit Subcommittee of the Board of Trustees. The director reports to this level within the organization to allow the internal auditors to fulfill their responsibilities. Internal auditors must have the support of senior management and of the Board of Trustees so that they can gain the cooperation of engagement clients and perform their work free from interference. Auditor objectivity is also maintained by appropriate supervision, which includes the review of working papers and documented evidence.
In conclusion, an internal auditor's objectivity is maintained because he does not own, or control the processes that were reviewed. Management is the owner of the processes, and Internal Audit is the reviewer.
Auditor's Opinion
How Internal Auditors at UK Remain Independent and Objective
To enable an internal auditor to accomplish his or her objectives and responsibilities to UK, auditors need to have independence and objectivity in their relations to management. This is stated in UK's Internal Audit Charter, which generally defines the purpose, authority, and responsibility of the internal auditing function.
By definition, internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. Independence is an attribute of the Internal Audit department, and objectivity is an attribute of the auditors themselves.
To provide for the independence of the Internal Audit department, its personnel report to the director of Internal Audit, who reports functionally to the Audit Subcommittee of the Board of Trustees. The director reports to this level within the organization to allow the internal auditors to fulfill their responsibilities. Internal auditors must have the support of senior management and of the Board of Trustees so that they can gain the cooperation of engagement clients and perform their work free from interference. Auditor objectivity is also maintained by appropriate supervision, which includes the review of working papers and documented evidence.
In conclusion, an internal auditor's objectivity is maintained because he does not own, or control the processes that were reviewed. Management is the owner of the processes, and Internal Audit is the reviewer.
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