Independence & Objectivity
Independence is the freedom from conditions that might threaten the ability of the internal audit activity to carry out internal audit responsibilities in an unbiased manner. To achieve the degree of independence necessary to effectively carry out the responsibilities of the internal audit activity, the chief audit executive [must have] direct and unrestricted access to senior University personnel and the Board. (Source: The IIA)
The SIAAB also specifies that internal audit must have neither any reporting responsibilities nor direct operational oversight of any program area nor may it report to any program area within the agency.
Objectivity is an unbiased mental attitude that allows internal auditors to perform engagements in such a manner that they believe in their work product and that no quality compromises are made. Objectivity requires that internal auditors do not subordinate their judgment on audit matters to others. (Source: The IIA).
In a Nutshell
All internal auditors need to remain independent from University functions and decision-making in order to support their objective state of mind in their work. Internal audit functions are not to be assigned to any other duties of the University.
|Fiscal Control and Internal Auditing Act (FCIAA)|
|The chief internal auditor shall report directly to the chief executive officer [(University President)] and shall have direct communications with the chief executive officer [(University President)] and the governing board, if applicable, in the exercise of auditing activities. All chief internal auditors and all full-time members of an internal audit staff shall be free of all operational duties. (FCIAA 30 ILCS 10/2002)|