The most important criteria in the selection of an internal auditor is whether that person is:

The key criterion for selecting an internal auditor is independence from the functional area being audited. This ensures that the auditor can objectively assess processes and compliance without any conflicts of interest. Independence is crucial because it allows for unbiased evaluations, fostering trust in the findings and recommendations of the audit.

While experience in the functional area may seem beneficial, it can actually impair the auditor's ability to be impartial if they have a personal stake or strong affiliations with that area. The most effective internal audits come from individuals who can view the processes critically and without bias, which is why independence is paramount.

An auditor who is familiar with the operational nuances may have valuable insights, but that familiarity can also lead to preconceived notions and less critical examinations. Thus, independence stands out as the most essential quality for an internal auditor.