Independence of Internal Auditors: Significance, Guidelines, and Influencing Factors

Abstract

Internal auditing plays an immensely significant role in diverse areas, encompassing the preservation of financial reporting integrity, the fortification of investor confidence, the assurance of compliance with regulations, the detection of fraudulent activities and errors, the enhancement of corporate governance, the optimization of business efficiency, the evaluation of creditworthiness, the promotion of regulatory compliance and accountability, the fostering of trust and transparency, and the safeguarding of stakeholders' interests. This article seeks to underscore the pivotal importance of auditing and the function of audit impartiality in guaranteeing the dependability and credibility of financial information utilized in credit and investment resolutions. The article accentuates the inevitability of auditor independence in preventing conflicts of interest and preserving impartiality throughout the audit process. The paper concludes that incessant endeavors to reinforce auditor independence through resilient regulatory frameworks and ethical training programs are imperative to ensuring the integrity and credibility of the audit process.