According to the Institute of Internal Auditors “Politics of Internal Auditing” (2015), 55% of chief audit executives were directed to commit important findings from their audit reports. 49% of chief audit executives were directed “not to perform audit work in high-risk areas.” 32% of chief audit executives were instructed to audit “low-risk” areas, in part so that executives could “retaliate against another individual.”
Thus, while auditors are the cornerstone of internal compliance, these internal channels often fail, leaving auditors with another option: blowing the whistle on the misconduct directly to the government.
Organisation for Economic Co-operation and Development (OECD) guidelines recommend that countries ensure that auditors are properly equipped to find and report violations of law in companies they audit. As part of this, it is critical that auditors understand their rights and protections under U.S. whistleblower programs.
Under the Dodd-Frank Act U.S. whistleblower programs (those administered by the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC)) external auditors are generally excluded from awards.
These…
