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Auditors should be urged to avoid situations organisation by the internal audit function. This
in which they feel they are unable to behave may be accomplished by:
impartially or in which they have a personal
interest in the result. • Leadership Commitment: It is imperative that
the audit committee and senior management
4. Third-Party Reviewer or Independent emphasise the value of independence and moral
Auditors conduct among the audit team.
The company should think about hiring an outside, • Ongoing Communication: Auditors should
independent auditor or third-party reviewer if an feel free to raise potential problems with their
auditor is unable to handle a conflict of interest bosses or leaders without fear of retaliation.
(COI) internally. To maintain credibility of the
audit findings, this might offer an extra degree of • Encouraging Ethical Decision-Making:
scrutiny and objectivity. Internal auditors should be encouraged to
make ethical decisions even if they contradict
5. Regular independence and objectivity with other organisational demands.
Conclusion
Audit teams should receive frequent training on
maintaining independence and identifying any One of the most important duties of internal
conflicts. The training should:
auditors is to manage conflicts of interest. Internal
auditors can retain their independence and
• Provide samples of prevalent COI safeguard the integrity of their work by identifying
circumstances.
• Outline how to report potential conflicts in a potential conflicts, disclosing them clearly, and
addressing them proactively. Effective conflict of
timely and effective way. interest management requires auditors and audit
• Educate auditors on the repercussions of failing teams to set clear policies, promote a transparent
to handle COIs.
atmosphere, and offer continual training. Above all,
internal auditors must maintain their ethical duty
to stay neutral, as their findings have a significant
impact on the organization’s long-term success and
reputation.
About the author: Mr Manoj Sharma is a Chartered
Accountant with more than two decades of experience
and presently associated with TKIL Industries Pvt
Ltd (f.k.a thyssenkrupp Industries India Pvt Ltd). He
is an esteemed member of various professional bodies
including ICAI (Institute of Chartered Accountant of
Creating a Culture of Independence and India), IIA (Institute of Internal Auditors), ISACA
(Information System Audit and Control Association)
Integrity and additionally holds Diploma in Cyber Law.
In addition to being an individual duty, managing He has rich experience in the field of Internal Audit,
conflicts of interest is a shared organisational Internal Controls, Insurance & Risk Management,
commitment. A culture of independence and Regulatory Compliance and Taxation.
ethics should be promoted throughout the entire
25 INTERNAL AUDIT TODAY
