Independence and objectivity are the cornerstones of the auditing profession. Even though internal auditing is generally not mandatory for companies to set up, its importance these days has increased phenomenally due to the fact that it assists companies to systematically evaluate and improve their risk management, internal controls and governance processes. Internal auditors are therefore expected to be independent and objective in order to provide unbiased and reliable reports, and to win the trust and confidence of people though admittedly, independence and objectivity are not easy to achieve in reality since the internal auditors are employees of the company they audit and report on.  The purpose of this study was thus, to critically investigate if independence and objectivity can truly be achieved in practice by employing a case study of the Reserve Bank of Malawi (RBM). Accordingly, empirical data was gathered from the above-mentioned bank via the administration of questionnaire to seven internal auditors.  The study revealed through a qualitative content analysis of the data collected that, the internal auditors of RBM are indeed independent and objective in their profession because the bank has instituted the right organizational structures and the Internal Audit Department has made tremendous effort in complying with best practices in the internal audit profession. This has created a proper work environment as well as developed an appropriate attitude within staff that has allowed a high level of independence and objectivity to be achieved. Based on the evidence of RBM, we can therefore say that the independence and objectivity of an internal auditor can truly be achieved in practice.

This dissertation measured using appropriate methodology the degree of independence of the Reserve Bank of Malawi based on the Reserve Bank of Malawi Act of 1989. Furthermore the dissertation assessed the vulnerability of this independence in the context of good governance and a variety of internal and external threats on the independence. This comes from the understanding that even though central banks are accorded independence, there are situations where practice deviates from what the charters state. Therefore the dissertation provides recommendations on how to strengthen the Reserve Bank Act to support its legal independence. / Thesis (M.A.)-University of KwaZulu-Natal, 2008.