Psychology of

an internal auditor
while conducting a
physical audit
Harendra Kumar Chandra
The psychology of an internal auditor during
the conduct of a physical audit is a fascinating
subject that delves into the mindset,
behaviors, and considerations that shape
their work. Internal auditors play a critical
role in ensuring the accuracy, integrity, and
compliance of financial and operational
processes within an organization. Here are
some key aspects of their psychology:
Harendra Kumar Chandra
 Objectivity and Independence
Internal auditors must maintain a high degree
of objectivity and independence. They should
approach the audit without bias or
preconceived notions. This requires a mindset
that focuses on facts, evidence, and a
commitment to uncovering the truth, even if it
may reveal mistakes or issues.
Harendra Kumar Chandra
 Critical Thinking
Internal auditors employ critical thinking skills
to assess the information they encounter
during the audit. They must question
assumptions, identify anomalies, and evaluate
the adequacy of controls in place. Their
psychological disposition includes a natural
inclination to question and seek deeper
understanding.
Harendra Kumar Chandra
 Attention to Detail
A keen eye for detail is paramount in physical
audits. Internal auditors must meticulously
examine records, documents, and physical
assets. Their psychology includes a natural
inclination to notice even the smallest
discrepancies or irregularities.

Harendra Kumar Chandra

 Analytical Skills
Internal auditors possess strong analytical
skills. They must interpret financial data,
assess risks, and evaluate the effectiveness of
internal controls. Their psychology involves
the ability to break down complex systems
and processes into manageable components
for analysis.
Harendra Kumar Chandra
 Professional Skepticism
Professional skepticism is a core attribute of
internal auditors. They maintain a healthy
level of doubt and distrust in the information
they encounter until they have sufficient
evidence to confirm its accuracy. This mindset
ensures that they don't take information at
face value.
Harendra Kumar Chandra
 Communication
Internal auditors must be effective
communicators. Their psychology includes the
ability to convey their findings, both in writing
and verbally, to a wide range of stakeholders,
from colleagues to senior management. Clear
and concise communication is essential to
ensure that audit results are understood and
acted upon
Harendra Kumar Chandra
 Resilience
Auditors may face resistance or pushback
from the individuals or departments being
audited. Their psychology includes the ability
to remain resilient and persistent in the face
of such challenges, staying focused on the
audit's objectives.

Harendra Kumar Chandra

 Ethical Integrity
Internal auditors adhere to a strong ethical
code. Their psychology includes a commitment
to upholding ethical standards and principles,
including confidentiality, integrity, and
professionalism. This is vital in maintaining
trust within the organization.

Harendra Kumar Chandra

 Continuous Learning
The field of internal auditing is dynamic, with
ever-evolving regulations and best practices.
Internal auditors have a psychological
disposition that values continuous learning
and adaptation to stay up-to-date with
industry trends and regulatory changes.

Harendra Kumar Chandra

 Teamwork
While internal auditors often work
independently, they also need to collaborate
with other team members, particularly when
conducting physical audits. Their psychology
includes being a team player, effectively
coordinating efforts, and sharing knowledge
and expertise.
Harendra Kumar Chandra
In summary, the psychology of an internal
auditor during a physical audit is
characterized by objectivity, critical thinking,
attention to detail, analytical skills,
professional skepticism, effective
communication, resilience, ethical integrity, a
commitment to continuous learning, and the
ability to work as part of a team. These
psychological traits enable internal auditors
to effectively perform their crucial role in
maintaining the financial and operational
integrity of an organization. Harendra Kumar Chandra
Thank You

Harendra Kumar Chandra