The Global Internal Audit Standards, specifically Principle 2, mandate that internal auditors must maintain an impartial and unbiased attitude while performing their duties and making decisions. This principle underscores the importance of individual objectivity and outlines how to safeguard it and what to do when it is compromised.
Key Expectations of Principle 2
- Impartial and Unbiased Mindset: Auditors must approach their work with an open mind, free from prejudice.
- Balanced Judgment: Decisions should be based on a fair assessment of all relevant circumstances.
- Bias Management: Auditors must be aware of their biases and actively manage them.
Safeguarding Individual Objectivity
The best way to safeguard individual objectivity is to avoid compromising it. This principle hinges on having an impartial and unbiased mindset. Here’s what that means:
- Impartial:
- Considering or judging something fairly without being influenced by personal interests.
- Treating everything or everyone equally.
- Not being directly involved to ensure fair consideration.
- Setting aside preconceived ideas and considering all opinions before drawing conclusions.
- Unbiased:
- Not likely to support one group over another.
- Being fair and free from favouritism and prejudice.
- Without discrimination.
Applying these principles, internal auditors must provide assurance that is not influenced by personal interests, considers all perspectives, and is free from favouritism, prejudice, and discrimination.
The Challenge of Biases
Biases can be conscious or unconscious. Our challenge as internal auditors is to become aware of our unconscious biases and bring them into our conscious awareness. Sewchurran (2015) outlines four stages of competence in becoming aware of biases:
- Unconscious Incompetence: Unaware of biases and believing everyone shares your perspective.
- Conscious Incompetence: Aware that you don’t know everything, and choosing to either obtain all necessary information or accept incomplete information.
- Conscious Competence: Aware of biases and actively checking conclusions to ensure unbiased assessments.
- Unconscious Competence: Subconsciously adjusting for biases before making assessments.
Cultivating Self-Awareness
To cultivate self-awareness of biases, internal auditors should:
- Engage Differently: Intentionally engage with people who have different opinions or perspectives to understand why they think the way they do. As an example, engage with individuals from different religious beliefs or cultures to see the world from their perspective.
- Challenge Perceptions: Challenge your own perceptions with others to learn about yourself and your worldview. As an example, when encountering transactions that don’t follow due process, engage with the auditee to understand their perspective.
By bravely and deliberately cultivating self-awareness, internal auditors can enhance their objectivity and build trust in their relationships and work processes.
References:
- Global Internal Audit Standards. Retrieved from link
- Sewchurran, K. (2015). A basic introduction to Everydayness. Unpublished EMBA Working Paper, Cape Town, UCT GSB.
- Various online dictionaries.