IIA-Australia White Paper - Conflicts of Interest


Peter McLeod PhD, MInf, BAcc, BBus, GradCertIA, FCPA, PMIIA, MAICD



Topics Explored

Internal Audit


White Paper


The issue to be addressed in this White Paper is ‘How can conflict of interest be validated?’

Key Points

  1. Controls associated with conflict of interest are generally soft controls. While there may be a ‘hard’ element to a control such as a policy document or a signed employee declaration declaring they do not have a conflict of interest, there is no ‘hard’ evidence to confirm this – it is a self-declaration. It is virtually impossible to ascertain through audit or investigative methods whether a self-declaration is accurate.
  2. This exposes the weakness of conflict of interest policy and associated controls – they are ineffective from an assurance perspective.

Relevant Industries


Level of Assumed Knowledge