Internal Audit and Ethics
Synopsis
Organizations need to have a ‘    culture of integrity and control, a culture that is set and
led right from the very top of the organization’. Culture needs to be clearly defined. Control
is all about assigning responsibilities and accountability. Both must start from the top of
an organization. Both are needed for conformance and performance if an organization is to be successful. Internal auditors should provide independent assurance that both exist, are
enterprise-wide and well governed. Cutting edge internal auditing should monitor culture,
risk and control through education, upholding their own high standards of control and ethics,
and providing independent assurance to the audit committee.
Contributed by Gill Bolton, a freelance consultant operating in the areas of corporate governance,
risk management and internal control. She can be contacted on gillbolton@ntlworld.com
After Reading the Case Study Consider:
1. What type of culture does your organization have? Is it one of integrity and control? Is
it set and led from the top of the organization?
2. Is conformance and performance linked in your organization’s objectives and achievements?
3. How is ‘accountability’ implemented in your organization? Is this through clearly defined
responsibilities at all levels, timely reporting – both internal and external, and the monitoring
of performance – both group and individual?
4. Is your internal auditing function at the cutting edge of monitoring 1, 2 and 3 above?