Two Factors Affecting Internal Audit Independence and Objectivity: Evidence from Singapore

Abstract

This study examines two factors that may in uence the independence and objectivity of internal audit. The rst, affecting the organizational independence of the internal audit function, is its relationship with the audit committee. The second is the use of the function as a management training ground. It is argued that this practice might affect individual objectivity because internal auditors may be reluctant to withstand pressure from an auditee who could be their future supervisor. A survey of chief internal auditors in Singapore was undertaken to establish current practice in these areas and to identify relationships between these variables. A strong relationship between the audit committee and the internal audit function was found, with the level of interaction being greater when the audit committee was comprised solely of independent directors. The use of the internal audit function as a management training ground was also found to be quite widespread in Singapore.

Internal audit function: a comparison between private and public sector in Nigeria

“…A comparison with [22] study indicated that 47 percent of the respondents indicate that on average internal auditors in Australia stay for 2 and 4 years in the IAF. A similar study of [12] indicated that 37 percent (20 respondents) indicated that in IAF such a movement to other units was unlikely for internal auditors in Singapore.…”

“…A comparison with Canadian study of [23] reported that 48 percent of the respondents indicated that AC are involved in the dismissal of the IAF. [12] reported 72 percent in Singapore, [20] reported 50 percent of AC are involved in the appointment evaluation and dismissal of internal audit head in Australia.…”

“…For example, [12] study the association between IAF and the audit committee influence on the independence and objectivity of the internal auditors. Their result indicated that 72 percent of the audit committee members were involved in the dismissal of the chief internal auditor.…”

Studi Fenomenologi Atas Dilema Etis Auditor Internal Pemerintah

“…Auditor mengalami kendala-kendala dalam prakteknya yang membuat ia dilema saat harus membuat keputusan etis (Larkin, 2000;Goodwin dan Yeo, 2001;Thompson, 2003). Auditor internal sering mengalami dilema etis yang menyangkut split loyalty, kesenjangan ekspektasi dan konflik kepentingan antara berbagai pihak (Woodbine dan Liu, 2010).…”

An Exploratory Study on Management Support Services and Its effects on the Quality Service Delivery of Internal Auditors in the Northern Ghana

“…This puts internal auditors in a complex situation as their independency can be compromised. The internal audit unit would continue to be independent and effective as long as management allows it to be [13]. It is on the basis of this the researchers sought to undertake this study to assess the support the internal audit units receive from management and how this affects the quality delivery of internal audit services in the public sector.…”