A recent article notes that the rapid pace of globalization requires internal audit professionals to possess a more sophisticated global mindset. This mindset includes not only the traditional technical dimensions of internal audit practice, but also its ethical foundations which can vary from country to country, from culture to culture and from language to language. Furthermore, language, culture and local laws and regulations can significantly impact how the ethical behavior of internal auditing professionals is analyzed, understood and, when necessary, investigated for propriety.
In this regard, the cultural anthropology concepts of emics (the insider’s perspective) and etics (the outsider’s perspective) of a culture influencing an individual’s ethical stance, and corresponding behavior, are discussed in detail. The article suggests that internal auditors working in global contexts might usefully adopt the “participant-observer” technique. Utilizing the constructs of the “three levels of culture” could be extremely useful in appreciating the surface features and deeper, unconscious bases where basic assumptions and values reside, and are correspondingly quite difficult to discern.
While appealing in theory, applying the participant-observer technique in practice could present a serious challenge to internal audit practitioners. In the 21st century, the Institute of Internal Auditors (IIA) constitutes one of the truly global professional organizations featuring representation from all major continents. So, there is an opportunity to evaluate the existing IIA Code of Ethics from different angles using the perspectives mentioned in this article, as well as others. The task seems endless, and the complexity is immense, but there is every promise that the efforts of many dedicated professionals around the world will make this evolving process exciting and worthwhile for future generations.
For more information, read the article “Towards a global Code of Ethics for a global internal auditing profession” by SridharRamamoorti, PhD, Associate Professor of Accounting and Director, Center for Corporate Governance, Kennesaw State University, Kennesaw , Georgia, USA.
