Integrity, Confidentiality and Professional Behavior of Internal Auditors

2008 Words Nov 9th, 2012 9 Pages
According to The Institute of Internal Auditors (IIA), "The integrity of internal auditors established trust and thus provides the basis for reliance on their judgement". IIA further added that to be integrity, internal auditors: * Shall perform their work with honestly, diligence, and responsibility. * Shall observe the law and make disclosures expected by the law and the profession. * Shall not knowingly be a party to any illegal activity, or engage in acts that are discreditable to the profession * Shall respect and contribute to the legitimate and ethical objectives of the organization.

According to the 2009 Global Integrity Survey conducted by Compliance Week and Integrity Interactive, polled more than
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Before this, there are limited studies that have used internal auditors as subjects. This could be because to the argument that the reporting make by internal auditors on corporate wrongdoings is not an act of whistleblowing, but is the role on internal auditor within the ambit of their profession (Jubb, 2000). Xu and Ziegenfuss counter-argue that what Cynthia Cooper (an internal auditor) did in the WorldCom was considered as whistleblowing, this shown that public may perceive that the internal auditor as a whistleblower. Another possibility is because of misperception that whistleblowing only relates to reporting parties outside of the organization (Keenan & Krueger, 1992). According to Eaton & Akers, 2007; Figg, 2000; Keenan & Krueger, 1992; Near & Miceli, 2008, whistleblowing can in fact occur internally or externally.

Near and Miceli (1995) argue that internal auditors have higher credibility and power as whistleblower than other organizational members as they are more likely to influence management to terminate wrongdoing. According to The Global Economic Crime Survey conducted by PricewaterhouseCooper (PricewaterhouseCoopers, 2009), internal auditing profession is indeed an important role in organizations as most frauds were detected by internal audit. It was supported by Miceli et al. (2008) states compared to other professions, the highest reported observation of wrongdoing was reported by internal auditors. Because of

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