The Illusion of Neutrality: How Pre-existing Assumptions Shape Audit Outcomes

This article challenges the conventional audit wisdom of approaching engagements with a 'neutral' or 'open mind.' It argues that auditors inherently carry 'priors'—pre-existing probability estimates about risks like fraud—which significantly influence how evidence is interpreted and findings are reached. For internal audit professionals, understanding this inherent subjectivity is crucial for enhancing the integrity and perceived objectivity of audit reports, and for engaging more effectively with governance bodies.