Page 52 - IAT

of the parties and negatively disrupt their future 4. To factor this intothe internal risk management
career prospects.
5. Risk of Workspace Retaliation,i.e., verbal abuse,
higher scrutiny, harassment, demotion, etc., and
on the other side, there could be favouritism to
one person, promotion, change for a better role
etc., which may not be aligned to entity’s standard
operating policies and also demotivates other
team members leading to risk of loss of focus
on day to day tasks and losing quality time to
unnecessary things.
What Best can the Internal Auditor do to
Avoid Such Situations?
1. The Internal Auditor should excuse himself
from carrying out any review or process where
conflict may arise from personal relationships.It
is easy to say this but hard to follow.
2. Have a good mentor to whom you can talk
without in hibitions and seek advice. A good
mentor would help guide you through challenging
circumstances.
3. Take management into confidence and let
another team member or authority do the review
who does not have such conflicts.A second review
of the key decisions taken by the IA by another
professional would ensure there is no bias in
decision-making.
References
1.https://www.lonelyphilosopher.com/
dharmasankat/#:~:text=DharmaSankat%20
is%20a%20predicament%20to,“Sankat”%20
(danger).
(last seen on 9 August 2023)
2. https://corporatelawreporter.com/achieving-
professional-excellence/ (last seen on 9 August
2023)
3. https://theauditlibrary.com/2020/11/23/
relationships/ (last seen on 24 August 2023)
48 | INSIGHT EXCHANGE
process of auditing,discuss with the audit team
and let them express their views, concerns,
inhibitions, etc., which can be holistically
addressed.
5. Disclose, where necessary, any possible conflict
of interest to management.
Conclusion: Quoting from Shakespeare’s
Julius Caesar..’ Caesar’s wife, should be above
suspicion’. The IA should be above all, in terms
of thecharacter one expects from them. At
times, relationships could impact the image of
the office of the IA, and stakeholders may get an
opportunity to question their objectives. It is up
to the IA to protect the profession’s image and
demonstrate it in real life.
About the author: Aditya is a Chartered
Accountant. Partner in R.G.N. Price & Co., since
2017. His area of experience is in both statutory
and internal audits of various companies including
listed companies and subsidiaries of Fortune
500 and advising clients on financial reporting
framework and sustainability related subject. He
holds Diploma in Information System Audit from
ICAI and other certifications. He is a guest speaker
in various forums, adjunct faculty in a University
for Internal Audit and IFRS and has also co-
authored books for IIA.
https://www.oas.org/es/oig/Activity%20
Reports%202022/2022%20OIG%20-%20
Activity%20Report.pdf
https://www.foley.com/-/media/files/insights/
events/audit-committee-hot-topics/files/
program-materials/fileattachment/2b.pdf (last
seen on 9 August 2023)
https://www.sec.gov/Archives/edgar/
data/764478/000076447812000044/
exhibit99251412.htm (last seen on 9 August
2023).
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