It is imperative for companies to have clean accounting records due to the fact that stakeholders expect financial statements that are free of fraud and material error.At first glance it is apparent that organization has an accounting system that is out of control…
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Your organization must prioritize fixing the accounting flaws in the system because the Sarbanes Oxley Act of 2002 has raised the accountability of executive managers. The company needs a professional assessment of its internal control deficiencies. The firm must hire an internal auditor as soon as possible to evaluate the firm’s accounting system and recommend corrective actions. “The Institute of Internal Auditors defines internal audit as an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations” (Menk). During the past decade the auditing field is growing in demand due to new regulations such as the Sarbanes Oxley Act which have raised the bar for accounting professionals. Section 404 of the Sarbanes Oxley Act mandates that all public companies establish internal control mechanisms and procedures” (Searchfinancialsecurity, 2011). These mechanisms must be tested on a recurrent basis for accuracy and effectiveness. The best person to put in charge of this task is an internal auditor. Due to the fact that the company must continue the internal auditing process year long it is cheaper for the company to hire an internal auditor full time than to outsource the work to another accounting firm.
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(Internal Auditor in a Company Essay Example | Topics and Well Written Essays - 500 Words)
“Internal Auditor in a Company Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/macro-microeconomics/1392932-week-one-individual-assignment.
The internal audit function seeks determine to express an opinion on whether an entity’s financial statements show a true and fair view of the companies operations. Inclusive in showing a fair view is the need to ensure that it has been prepared in accordance with accepted accounting standards.
The report will cover the following: the role played by the setting of objectives in auditing; the roles of auditors towards realization of misstatement-free financial statements; the roles of auditors whenever fraud cases are detected; the roles of auditors in handling executive issues of the client company; the roles of auditors in the management of the auditing process.
Specifically, the responsibilities of an auditor involve the full participation of the professional to identify the indication of inefficiency and ineptness in the financial statement of an organisation and confront receptive issues related to the inefficiency.
This paper intends to convince a client about the benefits of using an internal auditor. Functions of an Internal Auditor An internal auditor has an objective of assisting “all members of management in the effective discharge of their responsibilities, by furnishing them with analyses, appraisals, recommendations and pertinent comments concerning the activities reviewed” (Ridely, 2008, p.9).
The FEE Paper Comparison International Ethics Standards Board for Accountants (IESBA) Code of Ethics that says “An individual’s objectivity must be beyond question when conducting and reporting on a statutory Audit.” This is applicable when auditors themselves act as statutory auditor, or when they are auditing on behalf of an auditing firm.
This helps the organization in ensuring the financial reporting procedure is within the established regulations and the accounting ethics practices (TJX.com, 1). In addition, it helps the senior management and audit committee in ensuring there is efficient, adequate and effective internal control systems in the company.
The main risks for GenCo is that its main supplier, the State Coal Company, has a monopoly over coal supply in the country and that the State Power will retain the balance of shares. According to the agreement the prices will be fixed for the next two years, but a power sales contract for the output of the plant is available for three years.
The attributes that are essential to be measured by every organization are customer satisfaction index, SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats), known & emerging market potentials, performance of business processes, legal & statutory compliance, enhancement in strengths of competition, risks, internal/external fraud and traces of social engineering.
nventories and the value of the inventories will be displayed as well as the purchases or inflows of inventory and the issuance or out flow of inventory.
When the auditor clicks another icon, the financial indicators, the macro economic indicators, the size and age and
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