Introduction: Independence vs. Relevance
Early in my career, I was told something every auditor hears sooner or later:
“Stay independent. Don’t get too close to the business.”
At the time, it sounded noble.
Independence was our badge of honor.
The principle that gave internal audit its credibility.
But in practice, it meant I sat in a corner, reviewing documents, writing reports, and then watching those reports quietly gather dust on executives’ desks.
I was independent, yes. But I wasn’t making an impact.
And that’s the uncomfortable truth about independence. When taken too far, it doesn’t build credibility. It builds distance. And distance doesn’t make us valuable. It makes us irrelevant.
The Traditional Case for Audit Independence
Let’s be clear, internal audit independence exists for good reason.
Why Independence Matters
Independence protects our objectivity. It shields us from conflicts of interest. It allows us to deliver hard truths without fear of retaliation.
The IIA Standards enshrine independence as the profession’s foundation. Without it, internal audit risks becoming just another management function, influenced by politics, bias, or pressure from leadership.
Standards That Reinforce It
Historically, the logic has been simple. If auditors are too close to operations, they risk being “captured” by the business. Neutrality gets compromised, and trust collapses.
That’s why every training course, certification, and textbook drills the mantra: “Independence above all.”
But here’s where the logic falters in today’s environment. Independence has been reinterpreted as isolation. And isolation is quietly eroding our relevance.
The Downside Nobody Talks About
Independence was meant to give us freedom of judgment. Instead, it too often sidelines us from the conversations that matter. Besides, we are never free of judgment are we? If you believe so, you are sadly mistaken. But that’s a topic for another day. Stay tuned 🙂
100% Indepedence Often Equals Isolation
When we wall ourselves off, our reports become technically correct but practically disconnected. Recommendations look neat on paper but don’t resonate with leadership because they miss the operational context.
And let’s be honest, when executives view us as detached outsiders, our findings are easy to ignore.
Now let state the obvious again. A level of indepdence is important. But we will never be completely, one hundred percent, independent. It is a literal impossibility. Ignoring this is derelict of our audit duties. Ignoring this creates a credibility gap.
The Credibility Gap
Research backs this up. Deloitte and IIA surveys show that fewer than half of executives believe internal audit significantly adds value.
The IIA’s 2025 Pulse of Internal Audit revealed something even more telling: audit functions that align with organizational strategy enjoy approximately a 31% funding advantage.
In other words, leaders don’t reward independence for its own sake. They reward relevance and partnership.
The Audit Recommendation Implementation Problem
And what about audit recommendations implementation? Reports are only as good as the actions they inspire.
The Ontario Auditor General reviewed multiple years of audits and found that only 49% of recommendations were fully implemented, with 34% still “in process.”
Private industry isn’t much better (although financial services seems to be doing great):
- Financial services average ~75% implementation.
- Healthcare: ~70%.
- Manufacturing: ~65%.
If independence were enough to drive action, those numbers would be higher. The truth is simpler. Independence without influence rarely gets results.
Have You Had Similar Independence Issues?
When Independence Failed
I once worked with a team that prided itself on being the “purest” form of audit independence. They rarely left their offices. Their fieldwork consisted almost entirely of document reviews and management interviews.
The reports they produced were technically flawless: citations everywhere, polished findings, airtight control language.
And then… nothing.
When executives read those reports, they shrugged. “This doesn’t reflect reality,” they said. The recommendations were dismissed as academic, out of touch with the business.
The team had been independent. But they hadn’t been credible.
When Closeness Won
Now contrast that with another engagement. This audit team embedded themselves in operations. They walked the shop floor, shadowed staff, and saw firsthand the inefficiencies and frustrations that numbers alone don’t reveal.
When their report landed, it wasn’t just technically correct — it felt real. Executives saw their daily struggles reflected in the findings. The recommendations were specific, actionable, and immediately adopted.
It wasn’t independence they compromised. It was relevance they gained.
Funny thing is consultants do this all the time. They embed. They listen. They build relationships. And management often treats their recommendations as gospel.
Meanwhile, internal auditors cling so tightly to independence that they unintentionally make themselves easier to dismiss.
What About The Skills Internal Audit Is Missing
This isn’t just about perception. It’s about capability.
Analytics and Technology Adoption
Audit is supposed to be a forward-looking, data-driven profession. Yet, we’re lagging behind.
- 92% of CAEs say data analytics is critical to the profession’s future.
- Only 28% report their teams use analytics at a high or advanced level.
The same goes for AI. Chief Audit Executive adoption of generative AI jumped from 15% to 40% in just one year. But most departments admit they lack the skills to audit or advise on it effectively.
Remaining “independent” from technology doesn’t make us objective. It makes us obsolete.
One of the best ways, the best way to learn about new technology is to engage with our clients. They are on the front line. And front line peopel share with people who they believe have skin in the game. Not isolationist.
Next-Gen Audit Talent Expectations
First, shout out to my buddy Alex for calling out the need to cultivate NextGen auditors. Younger auditors aren’t drawn to roles where they sit in the back office, detached from operations, writing compliance-heavy reports.
They want to engage. To collaborate. To solve problems in real time.
If independence continues to be misinterpreted as detachment, we’ll lose our best and brightest to consulting firms, fintechs, and data-driven industries where their skills feel more relevant.
The Middle Ground: Audit Independence ≠ Isolation
The answer isn’t to abandon independence. It’s to redefine it.
Independence means freedom of judgment, not absence from the business.
Practical Ways Forward
- Embed More, Observe More
Stop relying solely on documentation. Walk processes. Sit with staff. See how things actually work. - Ask Bolder Questions
Go beyond, “Does this control exist?” Ask, “Is this process delivering value?” - Communicate with Context
Frame findings in terms executives care about: efficiency, risk, cost, trust. - Build Trust Proactively
Independence doesn’t mean avoiding relationships. Strong relationships enhance our ability to deliver tough messages.
The auditors who thrive in the future won’t be those who stay in their corner. They’ll be the ones who balance independence with credibility.
Rethinking Independence
Independence will always matter. But when independence is treated as a shield that keeps us distant, we trade impact for irrelevance.
Auditors don’t need less independence. They need more courage. Courage to engage with operations. Courage to ask hard questions. Courage to speak up when change is necessary.
Because independence without relevance isn’t objectivity. It’s invisibility.
So, what do you think? Is audit independence protecting us — or quietly holding us back?
This is exactly why our training goes beyond technical standards. We focus on courage, influence, and communication — the skills auditors need to thrive in an AI-driven, fast-moving world.
Independence matters. But without skin in the game, auditors risk becoming irrelevant.
Explore our courses to help your team strike the right balance.
Sources
https://www.prnewswire.com/news-releases/new-report-reveals-the-value-of-strategy-plus-increasing-responsibility-for-internal-audit-leaders-302395721.html
https://weaver.com/resources/beyond-the-benchmarks-2025-iia-pulse-report-insights-and-the-future-of-internal-audit/
https://www.auditor.on.ca/en/content/annualreports/arreports/en22/4-00FUContinuous_en22.pdf
https://www.theiia.org/en/content/communications/press-releases/2025/march/new-report-reveals-the-value-of-strategy-plus-increasing-responsibility-for-internal-audit-leaders/?utm_source=chatgpt.com
