Essays on Internal Audit

An Assignment Submitted by

Narrative Report After a thorough investigation, it was revealed that two individuals, namely Mr. Smith, the associate director of purchase and Ms. Bad, his administrative assistant, implemented a fraudulent scheme using the corporate funds for their personal gains. The analysis of the evidence determined that these two individuals managed to buy items for personal use instead of the planned corporate purchases. This activity resulted in the loss of $8,795.60 of corporate funds. The investigation came to the conclusion that the main culprit of the fraudulent scheme was Mr. Smith due to his status as the associate director, the ...

There were several main red flags that were ignored or handled leniently by E&Y auditors in the audit of Health South. The most important were materiality in ledgers of fixed assets that were adjusted by including false entries and fictitious assets that did not appear in real. Another red flag related to the reality was noticed and ignored by the auditors that company’s officials were interested in increasing the share price of HealthSouth in the stock market anyhow. There should have been awareness of the fact that was avoided by auditors was an unusual increase in the net ...

Operational Plan for NAB Company

Key Aspects of Operations Initiating the operational activities of the company, Non-Alcoholic Beverages Company (NAB Co.) would require approximately 200 employees in single shift. The company would be regulating two shifts in a day. The organogram of 200 employees each shift would include production workers, monitoring teams, shift managers, and Melinda Cates in the morning shift. The evening shift would comprise with the similar pattern of labor utilization but Stephen Job would be regulating in order to cross check the morning activity. The company would need a 5,000 sq ft. space initially to place equipment and conduct the ...

INTERNAL AUDIT AND FINANCIAL CONTROLS

Internal Audit and Financial Controls It is the ethical and professional responsibility of the auditing firm to maintain the high level of assurance and maintain an acceptable level of objectivity and independence as per the applicable codes of the auditing and assurance. Therefore, during or before performing audits, internal and external, the auditors must avoid any threat towards their independence and objectivity. However, in most of the cases, the auditors reduce the level of threats to assure that their reviews are objective and free from bias. ("Internal Audit's Relationship With External Audit") When the audit firm is providing the ...

Business Ethics

Business Ethics

The managers are responsible to the prevalence of ethical misconducts due to their extent of authority. Managers ensure that employees do not incorporate any unethical practices and understand the organization’s ethical conducts. The prevalence of ethical misconducts among the employees is observed by the managers due to which the managers take necessary actions in order to ensure that the occurrence of such misconducts is hindered. The employees are observed in accordance with the organization’s ethical standards and these standards help in the shaping the organizational behavior and hence, ethical conducts are set (Crane & Matten, 2007). ...

Attribute Standard 1312 issued by the IIA indicates that Internal Audit Departments purporting to follow IIA Standards must have an external assessment “conducted at least once every five years by a qualified, independent reviewer or review team from outside the organization. Two such organizations include World Com and Fannie Mae. The two organizations were in the news owing to various reporting and internal audit practices that may have resulted in their collapse, as is the case of World Com or hefty financial losses for their shareholders and other stakeholders. Consequent to such observations, the objective of this paper is ...

Introduction

Auditing is one of the most important elements in any police department. Both the law enforcement and individual offices should always be held responsible and accountable for their own actions. Effective auditing procedures are very vital if all the policing departments are to achieve their set objectives and goals of legitimacy and lawfulness as required by the national policing authority (National Council, 2004). Lawfulness alludes to consistence with the formal prerequisites of the law, including statutes and court choices. Legitimacy alludes to the recognition that police behavior is both legal and reliable with open desires. Responsibility is acknowledged through ...

1.0 Abstract Stakeholders are of central importance to every business organization. The success of any business hinges on the relationship that it has with its stakeholders. Disclosure of quality financial reports is significant for the capacity of business organizations to build confidence with their key stakeholders. Corporate governance and the audit quality have attracted the interest of researchers to determine how they impact stakeholders. Additionally, the implementation of IFRS (International Financial Reporting Standards) has impacted the direction of business organizations especially with regards to corporate governance. The question of whether the quality and extent of disclosure of financial information ...

It was a few years back that the United States market capital saw the domination of financial fraud revelations performed in so called big Companies of the economy. The stakeholders of the Companies like investors, affiliates in the market, and communities had to incur huge historic losses. The top notch corporate leaders were also the ones affected. The corporate veil was lifted in most cases and many of them had to suffer jail term. Industries were affected in the sense that many big names in the industry, including the biggest American audit firm were desperately out of business. The ...

Impacts of Outsourcing Internal Audit Fuction Author NameInstitution Name

Abstract This research finds out the effects outsourcing internal audit and extent of external auditors’ dependence on the work done by the internal audit team. We explore if outsourcing the internal audit function affects reliability on internal audit job already done and the use of assistant’s position for internal audit. We determine if internal audit outsourcing, the role of internal audit in systems consulting, affects external auditors’ dependence on internal audit. Results show that involvement in consultancy activities relating to the financial reporting system affects the extent of reliance on the work of the internal audit. When internal ...

QUESTION 2

Strength and weakness only affect the target company. In that case, strategic internal audit in a company helps it to understand its strengths and weaknesses better. The internal strategic plan looks at the certain functions that a company should perform. That way, it will be easier to understand force and weakness at service level other than in general. That way, the strategic internal audit will be improving efficiency. For instance, depending on products, market and products each company has functional units that are different from the other company. Therefore, the strategic audit will differ too. However, there are primary ...

The review of the action plan will be based on three risks. The risks are banking risk, manager’s travel risk, and by-law compliance risk. Banking risk involves theft of cash left in the premises while the manager’s travel risk involves physical injury to the manager when travelling or driving to the new store in Toowoomba. Finally, by-law compliance risk is the damage of the MacVille’s reputation, brand loss, and fines as a result of by-law violations. The risk management plan was implemented to manage the banking risk using the following strategies: making deposits to a bank ...