The internal audit profession is changing rapidly these days and the exact role of the auditor is in flux as they seek to retain influence in the organization. The internal audit function’s main objective is to add value to the organization through recommendations and audits, based on a systematic, disciplined approach to evaluating internal controls, risk management, and governance. To make this possible, the auditors rely on an international framework of professional practice that defines the essential principles that must be observed in the conduct of that work.
As part of these practices, the code of ethics of the auditor is one of the most important tools for proper positioning of internal audit within the organization in which it operates and how stakeholders perceive it. We cannot forget that internal auditors play a vital role in promoting ethical business principles, based on best practices of management and control.
Become Advocates of Ethical Business Practices
Internal auditors should be aware of the importance of their job as advisers and agents of ethical business practices. Moreover, it is very important that the auditor is seen by the organization as a trusted high-level professional, and that auditor’s recommendations add value to management.
This is only possible if there is, besides the independence of the internal audit activity, the individual objectivity, which supports the auditor to adopt an impartial view without any conflicts of interest.
Build a Trusted Relationship with Audit Clients
Now, the efforts of the auditor should always be guided by the construction of a structure of trust between auditor and manager or client. Here’s why it’s so important: you would not follow a leader who does not inspire trust, nor would you act on any information or advice that does not come from reliable and trusted sources. The same happens with internal auditors: if he or she does not inspire trust, how could they expect their recommendations to be observed?
Five Internal Audit Attributes that Drive Value:
- Acting as advocates of ethical business practices
- Building trusted relationships with audit clients
- Become models of behavior through positive actions and doing the right thing
- Protect information and avoid using it for personal gain
- Pursue knowledge of the business and continually learn about business practices
So, how do internal auditors achieve this confidence level within the organization? The answer is through high professional attitudes and positive actions. Words—both written and spoken—are important and can help lay the foundation for building trust, but, like tone at the top, actions are the way to really earn the trust of audit clients.
We must be virtuous in our activities, act responsibly, observe laws and regulations without exception, and disclose any information that is important and necessary to the clear understanding of the subject by managers.
Internal auditors also need to be prudent with the use of the information that is obtained in the course of audit work, protecting it and never using it for personal advantage. Confidentiality is extremely important to building trust, because the manager can rest assured that internal auditors will treat all information with discretion, unless, of course, criminal activity or other egregious behavior is uncovered. In addition, audit reports should only be finalized after discussion and involvement with the audit client.
Know the Business
Among the top attributes to drive value is to know the business. We need to have knowledge of the subject matter of the assessment, as well as the skill and experience to conduct the work. Under no circumstances can we commit ourselves to evaluate an activity on which we do not have such jurisdiction or the understanding to make proper evaluations. We would be very unwise if this happened, jeopardizing that trust and our influence as experts.
In this aspect further, we must be efficient in meeting auditing standards and continuously improve our proficiency in matters relating to audit and management.
Only after all of these criteria are met can we really solidify our position as professionals able to add value to the organization as trusted advisors, acting ethically and with experience and knowledge. And as a result of this, we can make the real commitment to promoting best management practices and advocating ethical attitudes on the corporate environment. 
Eduardo P. Pardini is a partner at Crossover Consulting & Auditing and executive director at ICI Internal Control Institute – Brazil