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risk management framework. Internal audit
ensures that ethical risks—such as bribery,
discrimination, and unethical sales practices—
are assessed, monitored, and escalated
appropriately.
The Ethical Dilemma: When Internal
Audit Discovers Ethical Breaches
A crucial question: What happens when internal
audit identifies ethical concerns involving senior Conclusion
management? The challenge for internal auditors is
maintaining independence while escalating ethical Ethics in business is not just about avoiding
breaches. Best practices include: scandals—it is about building a resilient,
trustworthy, and sustainable organization.
1. Direct Reporting to the Audit Committee: CEOs and corporate leaders set the tone, but
Avoiding interference from management when internal audit ensures that tone translates into
reporting serious ethical violations. action. By proactively assessing ethical culture,
testing governance mechanisms, and providing
2. Collaborating with Legal & Compliance independent oversight, internal auditors act
Teams: Ensuring ethical concerns are addressed as guardians of integrity, ensuring that ethics
legally and appropriately. remains at the heart of business decision-making.
3. Documenting Findings with Evidence: As ethical challenges continue to evolve, internal
Providing fact-based reports that cannot be audit’s role in reinforcing corporate integrity
easily dismissed. will only grow stronger. The question is: Is your
internal audit function equipped to handle the
ethical risks of tomorrow?
By
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INTERNAL AUDIT TODAY 46
