Internal Auditor Code Of Ethics

The purpose of an internal auditor is to provide an independent and objective insight on the processes and risks a company has exposed itself to. With the obtained information through field work an auditor forms their findings and is then to add value to the company by recommending areas of improvement and suggestions of how to resolve those findings. According to the Institute of Internal Auditors (IIA) “internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.”

The code of ethics promotes the ethical values that internal auditing professionals are to uphold and practice by. The first principle in the code of ethics is integrity. The integrity of an internal auditor builds the foundation for trust with the client; if a client trust’s the auditor the communication process will be smoother when delivering difficult messages. The second principle is objectivity. Objectivity requires an internal auditor to preform and report the results of the audit without any bias. Objectivity aids in the delivery of grim news because the stakeholders can be assured that the findings and reports are the truth and aren’t swayed by the dislike or favoritism by the auditor. The objectivity principle also requires an internal auditor to disclose all material known facts so the stakeholders have the full picture and not just bits and pieces that could alternate the overall impression of the final report. Another principle within the code of ethics is competency. The competency requirement ensures that an internal auditor can’t perform and audit in which they don’t have the expertise or knowledge. Knowing that the auditor performing the audit and delivering the difficult findings and messages is competent and knowledgeable in what they are doing eases the communication process. Clients have the security and comfort of knowing that the auditor isn’t just pulling something out of a hat so that it appears as though they know what they are talking about. The auditor must actually understand the rules, regulations, laws, and obligations a company has to abide by before even entering into an auditing