IIA-Australia White Paper - Managing Your Service Provider

IIA-Australia White Paper - Managing Your Service Provider - Independence and Objectivity

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Author	Michael Parkinson BSc (Hons), GradDipComputing, CIA, CISA, CRMA, CRISC, PFIIA
Date	2023
Topics Explored	Internal Audit, Governance
Format	White Paper
Extract/Description	It is important that organisations have an internal audit activity that is independent and objective. To ensure internal audit independence and objectivity, organisations should have defined in-house processes around management of service providers delivering internal audit services that are driven by the organisation itself.
Key Points	Externally engaged service providers can perform a useful role in the delivery of internal audit services. Good governance of an organisation remains the responsibility of the board or its equivalent. Part of this responsibility is to maintain an strategic control of the internal audit program. The perspective of the internal auditor should not be unduly influenced by the partisan perspective of management or the interests of any external entity. The structural relationships between members of the same firm mean that there may be a perception of conflict if a service provider firm is providing internal audit services.
Relevant Industries	All
Level of Assumed Knowledge	Expert