Integrity, Confidentiality and Professional Behavior of Internal Auditors

2005 WordsNov 23, 20129 Pages
Integrity According to The Institute of Internal Auditors (IIA), "The integrity of internal auditors established trust and thus provides the basis for reliance on their judgement". IIA further added that to be integrity, internal auditors: * Shall perform their work with honestly, diligence, and responsibility. * Shall observe the law and make disclosures expected by the law and the profession. * Shall not knowingly be a party to any illegal activity, or engage in acts that are discreditable to the profession * Shall respect and contribute to the legitimate and ethical objectives of the organization. According to the 2009 Global Integrity Survey conducted by Compliance Week and Integrity Interactive, polled more than…show more content…
Another issue is on whether or not internal auditors should whistleblow when they discover organizational wrongdoings. Internal auditors always face situations that involve conflict of interest while executing their dual-role duties (Armold & Ponemon, 1991; E.Z. Taylor & Curtis, 2010). The dual-role duties mentioned here are the role of internal auditors as employed by the organization, which subject to the needs and requirements of their employment, and the role as members of a professional body, they are required to adhere to the profession's ethical requirements. Ahmad and Taylor support the view and assert that the role of internal auditors in providing auditing tasks for their organizational may cause ongoing conflicts. Zhang, Chiu and Wei (2009) argue that the "disclosing insider information to outsider's breaches obligation to the organization, violates the written or unspoken contract, and elicits damaging publicity". However, ethically, internal whistleblowing, as opposed to external whistleblowing, is preferred. This is due to severe damage caused by external whistleblowing as compared to internal whistleblowing (Park & Blenkinsopp, 2009). In order to avoid the severe damages caused by whistleblowing, Vinten (1996) has suggested that an organization may minimize

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