NAIRAH M.

TAMBIE May 31, 2021

ACT140 – Cc

TITLE: INDEPENDENCE AND OBJECTIVITY:

A FRAMEWORK FOR RESEARCH OPPORTUNITIES IN INTERNAL AUDITING
https://global.theiia.org/iiarf/Public%20Documents/Chapter%207%20Independence%20and%20
Objectivity%20A%20Framework%20for%20Research%20Opportunities%20in%20Internal%20
Auditing.pdf

BRIEF SUMMARY: The purpose of this study is to discuss the concepts of independence and
objectivity within the context of internal auditing and to suggest topics for future research.
Precisely, the study highlights the concepts of independence and objectivity importance to other
profession and how do the other profession implement the demand for independence and
objectivity. Within this study, the researchers tried to assess the approaches used in other
professions relevant to internal auditing.

REFLECTION:
The selected article I chose is a study which provides emphasis on both the independence
and objectivity. The study defines objectivity relates to the quality of the assessments, judgments,
and decisions that are activities of any assurance or consulting service, and independence relates
to the state of the environment in which the assurance or consulting service takes place. Precisely,
objectivity is defined as a state of mind in which biases do not inappropriately affect assessments,
judgments, and decisions while independence is defined as freedom from material conflicts of
interest that threaten objectivity.
Simply said, objectivity is a desired attribute of individuals or teams making choices
among the whole range of assurance service options, as well as individuals or teams performing
assurance services and making the relevant assessments, judgements, and conclusions While
independence is a desirable attribute of the environment in which assurance services are provided
by a person or a team.
The definition of internal auditing found in the overview to this study provides some clues
as to the incentives and environmental forces faced by internal auditors. The study simply provided
us an overview that both independence and objectivity remain important for internal auditors and
the internal audit function whether it is assurance services provided by internal auditors working
for a given company, outsourced internal audit assurance activities with minimal internal auditor
involvement, or outside experts providing the services.
Furthermore, in the field of internal auditing, independence and objectivity remain
significant ideas. The study identified three (3) components of professionalism that are applicable
to the internal audit profession, namely integrity, competence, and the use of due care. The
significance of objectivity when making assessments, judgements, and conclusions is not
mentioned in the definition of a profession. Objectivity, together with the three components of
professionalism, are clearly articulated as essential and sufficient criteria for value-adding
professional services. Objectivity guarantees that assessments, judgements, and conclusions are
made in an objective manner. For value-added assurance and consulting services, objectivity,
integrity, competence, and due care are all necessary and sufficient criteria. The above discussion
of a profession and professionals, on a broad level, applies to every profession, regardless of
subject matter or specific context. In any circumstance, one should expect the competent
professional to act with integrity and make unbiased assessments, judgements, and conclusions. If
certain conditions exist, the professional services provided are beneficial.