Essays on Internal Auditor

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 ...

Corporate governance refers to a system in which companies in a given region are directed and controlled. It involves a set of relationships existing between the board, management, shareholders and any other stakeholders of the company. Corporate governance as well is instrumental in the provision of a structure of setting the objectives of a company, the means of attaining the set objectives and monitoring performance of the company. Corporate governance lies on four pillars which include accountability, transparency, fairness and responsibility (Sharar, 8). A corporate governance framework is necessary to safeguard the interest of the various stakeholders in any ...

Corporate governance refers to a system in which companies in a given region are directed and controlled. It involves a set of relationships existing between the board, management, shareholders and any other stakeholders of the company. Corporate governance as well is instrumental in the provision of a structure of setting the objectives of a company, the means of attaining the set objectives and monitoring performance of the company. Corporate governance lies on four pillars which include accountability, transparency, fairness and responsibility (Sharar, 8). The Qatar Financial Market Authority (QFMA) was established in 2009 (Sharar, 8). After its establishment, QFMA ...

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 One

Phil shows that he was not fully prepared by arriving late. Although he was familiar with how long it would take to get to the organization, he did not adjust his time so as to arrive on time. Consequently, he missed several steps he should have undertaken in order to improve the quality of his audit. First, he did not have a comprehensive entrance meeting with the client so he did not have the opportunity to meet key personnel that will have significant involvement in the process considering the main contact person would not be available until the end ...

Short Answers

Short Answers The companies all over the world are using the IT to enhance the efficiency of their business. Due to this dependency, the numbers of IT frauds are increasing. The access of the restricted records and the database of the business to the irrelevant employee create a risk for the business. For example, an unauthorized user or employee can increase the pay scale of the individuals in the system of the business. Another important reason of IT frauds is that the proper supervision or the authorization measures are not taken by the organization. For example, the purchasing department ...

Financial discrepancies are part of the issues affecting companies today. It is worth noting that forensic investigation in a computerized work environment solves fraudulent activities. This process demands high-level expertise in forensic investigation. A forensic investigator uses various steps in investigating an employee computer. The forensic expert has to follow various steps during the investigation process. These include planning stage, gathering information stage, review process, and reporting. Investigation on employee computer is streamlined towards finding out the fraudulent activities, where and when it took place, identify those involved and quantify the monetary value of the fraud. Getting authorization to ...

Institiution

According to the Wharton research, when an executive is overconfident and thinks that his organization is just facing the bad luck otherwise it is in best concern of all stakeholders. These stakeholders include customers, shareholders, management, creditors, and employees. The executive to cover up the problem takes short routes that do not allow the executive to understand the poor performance of the organization as a future threat. An overconfident manager does not consider the flaws and search for gray areas to manage earnings that led them to fraudulent behavior (Wharton, 2008). If the case of Satyam is considered, then ...

Auditing - 2

Report Introduction: I was asked by the management of Cotton Company to perform an audit review on their current controls in sales and cash receipts and identify their strong controls in the existing system. Moreover, I was asked to provide a detail of the deficiencies in the internal controls and provide their recommendations.

Main Report:

Existing Controls in Sales and Cash Receipts: Sales on store’s own billing: The sales made in the Cotton Company are made on their own billing receipt instead of using the credit cards from the customers. Most of the sales of the Cotton Company is ...

Introduction

With the emergence of a global competition, every business faces a challenge to capture more market share by improving the bottom line of its financial statements and reinvesting much of the earnings to expand operations. For this organizations implement tight internal controls so that none of the business transaction goes unchecked. In this regard, an auditor’s role is critical to track any possibility of fraudulent activity within the business finance. With such a concept in mind, this paper has been written to identify the roles and responsibilities which an internal auditor assumes within an organization. The major focus of this ...

Audit in small businesses

It is true that the smaller companies are not legally bound to conduct an external audit every year. However, it is very important to state that the small companies can hire audit firms to perform an audit to identify their weaknesses and exact financial performance. Most of the small or medium size businesses are run by a sole proprietor or the partners, and it is very difficult for the owners of the business to check their own financial statements for the errors and manipulations. Moreover, self check is not enough for the future growth of the business. Therefore, in these ...

Part 1

Hiring qualified persons into an organization’s workforce remains one of the vital roles played by human resource managers. Typical recruitment exercises and interviews are channels through which managers will identify the right person for a vacant position. According to Heron (2005), the purpose of carrying a thorough assessment and testing on new employees is because certain tasks within an organization require specific technical and interpersonal skills. In practical context, customer relations officers should be friendly, presentable and with good communication skills. On the other hand, machine operators and engineers should possess substantial dexterity in dealing with tools and equipment within ...

Tim Horton’s internal audit plan is conducted by the accounting staff to provide specific guidelines to be used by the management review team and private certified public accounts to carry out accounting processes. The audit plan consists of several phases and these include planning, fieldwork, a take notes meeting and a counteractive audit. Planning processes are the most important step in ensuring a successful internal audit. Tim Horton Inc. operations include the development and franchising of quick service restaurants principally in the United States and Canada serving premium coffee, fruit smoothies, soups and other food products. As a franchisor, royalty revenue is ...

- . The Institute of Internal Auditors""? (IIA""?s) Code of Ethics and International Standards for the Professional Practice of Internal Auditing (Standards) [Chapter 2] One of the fundamental roles of internal auditing is to ensure that ethical behavior is promoted among the internal auditors. The ethics outline the principles and expectations that an internal auditor should possess while conducting internal auditing to improve the effectiveness of risk management. Ethics explain the principles that an internal auditor should follow while carrying out auditing. It also outlines the qualities that an internal auditor should possess. The standards put in ...

4. Discuss the issues and recent developments relevant to auditing social corporate responsibility reporting. Provide your opinion (with support) on the extent US companies and audit firms should engage in social corporate responsibility reporting.

Social corporate responsibility reports usually contain information on issues pertaining to the environment, human rights, safety, supply chain, and other social concerns. (McCuaig, 2006) These are public documents reported to non economic stakeholders, whose primary interests go beyond corporate money making and whose knowledge about the corporations are just fulfilled by the usual financial and regulatory reports. Thus, these reports sometimes come as a ...

Topic: Business Law

1. Explain how this scenario relates to an area of law taught in Introduction to Business Law. (2 marks) Introduction to business law is a phenomenon that aids business mangers and everyone within the business environment to be aware of the legal environment that the business operates in. C & A engages an internal auditor to carry out auditing of their financial books of accounts and through intimidation, Julia who has been engaged as the internal auditor caries out the task negligently and later an external auditor is engaged to check on the correctness of the financial books. Fortunately or ...