Objectivity is a state or quality that implies detachment, lack of bias, not influenced by personal feelings, prejudices or emotions. It is a very important quality in corporate governance generally and especially important in all audit situations where, regardless of personal feeling, the auditor must carry out his or her task objectively and with the purpose of the audit uppermost in mind. The IFAC Code of Ethics explains objectivity in the following terms (Introduction, clause 16): “… fair and should not allow prejudice or bias, conflict of interest or influence of others to override objectivity.”
It thus follows that characteristics that might demonstrate an internal auditor’s professional objectivity will include fairness and even-handedness, freedom from bias or prejudice and the avoidance of conflicts of interest (e.g. by accepting gifts, threats to independence, etc.).
The internal auditor should remember at all times that the purpose is to deliver a report on the systems being audited to his or her principal. In an external audit situation, the principal is ultimately the shareholder and in internal audit situations, it is the internal audit committee (and then ultimately, shareholders).
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