D.6 Policy on Objectivity

  1. Objectivity is a mental attitude that internal auditors must maintain in performing practice reviews and internal audits. All audit methods and procedures are designed with the objective of fostering objectivity. Practice Review and Internal Audit (PRIA) should maintain an independent mental attitude free of partiality or bias when conducting its work and not subordinate its judgment on audit matters to others.

  2. Objectivity requires PRIA to conduct its work in such a manner that it has an honest belief in its work product and that no significant quality compromises are made. PRIA auditors are not to be placed in situations in which they feel unable to make objective professional judgments. Appropriate supervisory involvement takes place to ensure audit objectives are met and that objectivity is maintained.

  3. Staff assignments are made so that potential and actual conflicts of interest and bias are avoided. PRIA auditors should adhere to ethical requirements, including signing an annual Conflict of Interest Report and Assurance Engagement Reports on Independence before commencing work on any practice review or internal audit engagement. They are expected to follow standard policies of the Office of the Auditor General of Canada (Office) to report conflict of interest situations to the Chief Audit Executive (CAE). If threats to independence or ethical requirements are identified, an Exception Report is completed to facilitate the resolution of the threat. The CAE will review the Exception Report in consultation with the Internal Specialist for Values and Ethics. Internal auditors do not ordinarily assume operating responsibilities. If, on occasion, internal auditors perform non-audit work, it is understood that they are not functioning as internal auditors.

  4. Internal auditors do not audit any activity for which they had authority or responsibility the previous year.

  5. The International Standards for the Professional Practice of Internal Auditing (Standards) note that, “Objectivity is presumed to be impaired if an auditor provides assurance services for an activity for which the auditor had responsibility within the previous year.” To be consistent with other Office policies, those transferred to, or temporarily engaged by, the PRIA team should not be assigned to audit or review activities they performed within the previous two years.

  6. With regard to consulting assignments, and in accordance with the Standards, if an internal auditor has a potential impairment to objectivity related to the proposed assignment, it will be disclosed to the client prior to accepting the assignment.

  7. The CAE is responsible for reviewing all audit work before final reporting to ensure objectivity was in place.

  8. PRIA personnel do not design, install, or operate systems, or draft operating procedures.

Last modified:
2018-03-01