|
|
In its response to the European Parliament’s consultation on a new directive to tackle these issues, ECIIA says that the directive should give explicit protection to auditors who play a crucial role in bringing wrong-doing to the board, executive management, the regulators and the public.
"The directive should make it clear that chief audit executives should receive all possible protection against threats, adverse treatment and consequences – such as the termination of their contract of employment", Thijs Smit, ECIIA President says. "Everything possible should be done to strengthen their role, position and independence." That should include the provision of free legal aid, he added.
High profile internal audit whistle-blowers, such as Cynthia Cooper who discovered a $3.8 billion black hole in WorldCom’s accounts in 2002, often come under intense pressure and bullying to make them conceal the truth.
Given the central role that internal auditors play in uncovering unethical behaviour, ECIIA urged the European Parliament to amend the directive to provide them with explicit protection in its response to consultation on the proposed new measures.