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Independence of Internal Auditors: Significance, Guidelines, and Influencing Factors

Author

Listed:
  • Manasseh Njagi

    (Department of Business Administration, Technical University of Mombasa)

Abstract

Internal auditing plays an immensely significant role in diverse areas, encompassing the preservation of financial reporting integrity, the fortification of investor confidence, the assurance of compliance with regulations, the detection of fraudulent activities and errors, the enhancement of corporate governance, the optimization of business efficiency, the evaluation of creditworthiness, the promotion of regulatory compliance and accountability, the fostering of trust and transparency, and the safeguarding of stakeholders' interests. This article seeks to underscore the pivotal importance of auditing and the function of audit impartiality in guaranteeing the dependability and credibility of financial information utilized in credit and investment resolutions. The article accentuates the inevitability of auditor independence in preventing conflicts of interest and preserving impartiality throughout the audit process. The paper concludes that incessant endeavors to reinforce auditor independence through resilient regulatory frameworks and ethical training programs are imperative to ensuring the integrity and credibility of the audit process.

Suggested Citation

  • Manasseh Njagi, 2023. "Independence of Internal Auditors: Significance, Guidelines, and Influencing Factors," East African Finance Journal, East African Finance Journal, vol. 2(1).
    • Handle: RePEc:cwk:eafjke:2023-08
    DOI: 10.59413/eafj/v2.i1.8
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    File URL: https://ijcsacademia.com/index.php/eafj/article/view/227
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    References listed on IDEAS

    as
    1. Georgia Boskou & Efstathios Kirkos & Charalambos Spathis, 2019. "Classifying internal audit quality using textual analysis: the case of auditor selection," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 34(8), pages 924-950, May.
    2. Charles Guandaru Kamau & Benjamin Muzungu Kavure & John Ewoi Lokuta, 2023. "Audit Expectation Gap in Kenya: Literature Review of Causes and Remedies," East African Finance Journal, East African Finance Journal, vol. 2(1).
    3. repec:eme:maj000:maj-01-2018-1785 is not listed on IDEAS
    4. Laura de Zwaan & Jenny Stewart & Nava Subramaniam, 2011. "Internal audit involvement in enterprise risk management," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 26(7), pages 586-604, July.
    5. repec:eme:maj000:02686901111151323 is not listed on IDEAS
    6. Laura de Zwaan & Jenny Stewart & Nava Subramaniam, 2011. "Internal audit involvement in enterprise risk management," Managerial Auditing Journal, Emerald Group Publishing, vol. 26(7), pages 586-604, July.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

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    2. Ann Ndungu & Prof. Allan Kihara, 2025. "Effect of Enterprise Risk Management Strategies on Competitiveness of Matatu Saccos in Kajiado North Sub-County," Journal of Business and Strategic Management, CARI Journals Limited, vol. 10(8), pages 30-50.

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