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Challenges in Internal Audit Reporting facts reported. Collaboration with Management
in a positive manner helps to overcome tough or
Q: What are the practical challenges auditors challenging situations.
face when reporting?
A: Calling Spade a Spade (Mr. Sudhir Dalvi
Laughs). Many times, Stakeholders may come
up to say, can we soften the words used to bring
out the audit finding. Well then the auditor has
to keep facts as it is but find an alternative way of
reporting the audit finding.
A lot to do with Stakeholder Management
is the way in which you communicate to the
Stakeholders. Facts can always be represented in
a positive manner.
Conclusion: The Future of Ethical
Avoiding judgement statements itself softens the Internal Auditing
tone of the finding without the need to soften the
facts. Facts are not supposed to be changed. Ethical internal audit reporting is not just about
compliance—it is about fostering a culture of trust,
Navigating Stakeholder Management accountability, and governance. Transparency
must be balanced with discretion, and auditors
Q: How have you been able to successfully must remain steadfast in their ethical principles
navigate Stakeholder Management while while adapting to the evolving business landscape.
internal audit reporting ? Final Thought: The role of an auditor is not just
to identify gaps but to be a catalyst for positive
A: There are 3 or 4 points I would like to dedicate change. In a world where ethical leadership is
my success to (if I may say so) Transparent more critical than ever, auditors must lead by
communication with Stakeholders. example—ensuring that integrity, transparency,
and ethics remain at the core of every audit report.
Understanding and delivering their expectations.
I would like to share one of the mantras, in a lighter
note ‘’Beauty lies in the eyes of the beholder,
similarly value of Internal Audit Function lies About the Author: Mr. Sudhir Dalvi is currently
in the eyes of the Stakeholder’’. So ensure the heads the Corporate Audit Function at ABMCPL
reporting provides value to the Stakeholders Being and is an Esteemed Member and Distinguished
adaptable and flexible with the changing times has Speaker for various professional bodies including
helped me navigate all times CII (Confederation of Indian Industry, ICAI
(Institute of Chartered Accountants of India) and
Ethical Dilemmas in Internal Audit IIA (Institute of Internal Auditors). He is a Rank
Reporting Holder Chartered Accountant and additionally
holds certifications in International Financial
Reporting Standards (IFRS) from the Institute
Q: Have you ever faced an ethical dilemma in of Chartered Accountants – England & Wales
audit reporting and what was your approach as a (ICAEW).
young auditor and now a Chief Audit Executive
/ Head of Corporate Audit Function of such a His expertise in internal auditing, financial controls,
large conglomerate? and corporate governance makes him a Thought
Leader in the fraternity, shaping ethical practices
A: Well, approach has been to ensure your work for the next generation of auditors.
is perfect, ensuring evidences are gathered all the
13 INTERNAL AUDIT TODAY
