In addition, those in the entity with operational and managerial duties and responsibilities outside of the internal audit function would ordinarily face threats to their objectivity that would preclude them from being treated as part of an internal audit …

While the objectives of an entity’s internal audit function and the external auditor differ, the function may perform audit procedures similar to those performed by the external auditor in an audit of a financial report. If so, the external auditor may …

Evaluating the Internal Audit Function Objectivity and Competence   (Ref: Para. 15(a)-(b)) …

The external auditor exercises professional judgement in determining whether the work of the internal audit function can be used for purposes of the audit, and the nature and extent to which the work of the internal audit function can be used in the …

The extent to which the internal audit function’s organisational status and relevant policies and procedures support the objectivity of the internal auditors and the level of competence of the function are particularly important in determining whether to …

Objectivity refers to the ability to perform those tasks without allowing bias, conflict of interest or undue influence of others to override professional judgements. Factors that may affect the external auditor’s evaluation include the following: Whether …

Competence of the internal audit function refers to the attainment and maintenance of knowledge and skills of the function as a whole at the level required to enable assigned tasks to be performed diligently and in accordance with applicable professional …

Objectivity and competence may be viewed as a continuum.  The more the internal audit function’s organisational status and relevant policies and procedures adequately support the objectivity of the internal auditors and the higher the level of competence …

Application of a Systematic and Disciplined Approach   (Ref: Para. 15(c)) …

The application of a systematic and disciplined approach to planning, performing, supervising, reviewing and documenting its activities distinguishes the activities of the internal audit function from other monitoring controls that may be performed within …