Internal Audit And Review Reports

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1. Internal Audit and Review Reports
Internal audit and review reports
|by Katharine Bagshaw | |
|29 Jan 2003 | |
|Internal auditors, external auditors, and consultants who perform internal audit and review
engagements provide reports to management |
|(internal audit reports). These reports are important because they provide documentary evidence of
the work performed, the conclusions reached|
|and the recommendations made. The quality and presentation of such reports makes a substantial
difference to the value added by ... Show more content on Helpwriting.net ...
Draft reports will often be discussed with management to confirm the findings and to establish
management's likely response. |
|Responses are often incorporated into the report. Reports will often be redrafted several times,
particularly in large organisations, after |
|which the report will be issued. If management have not commented at an earlier stage, a formal
response may be expected later. It is normal |
|to follow up on recommendations or agreed action points in order to establish how the issues have
been dealt with. |
|External auditor reports to management deal in substance with, inter alia, issues relating to the
design and implementation of internal |
|controls that have come to the external auditors' attention during the course of the statutory audit.
They generally deal with weaknesses in |
|systems, the potential consequences and provide recommendations to management. Whilst internal
audit reports may appear to be similar, they |
|are different in substance. |
|Internal audit engagements are usually undertaken as part of a pre–planned program of work with a
variety of objectives as part of an entity's|
|overall corporate governance arrangements. These
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3. The Independence Of Internal Audit
Independence is a very important element in auditing. Because of the Enron Corporation and other
scandals, independence of auditors becomes a vital issue in the audit industry. It is difficult to
achieve 'independent' for auditors as there is the fact that the client pays the audit fee. In this essay,
we will focus on the independence of internal audit.
Internal audit plays an important role in a company. According to the IIA (1999), "Internal auditing
is an independent, objective assurance and consulting activity designed to add value and improve an
organization's operations. It helps an organization accomplish its objectives by bringing a
systematic, disciplined approach to evaluate and improve the effectiveness of risk management, ...
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"The auditing profession promotes the principle of independence to define, defend, and extend the
profession" (Sikka and Willmott, 1995). Independence is the most priceless asset in the auditing
profession and the basic principle that supports the reputation of the auditing profession in the
public eye. Auditors protect the public's confidence in such services by conducting an auditing work
independently. In fact, the capability of the profession depends on how it can ensure the principle of
independence.
In the ideal circumstances, the person performing an audit should have no relationship to the party
being audited. The lack of a relationship prevents bias entering into the audit findings. In corporate
settings, a company hires an internal auditor or establishes a contract to purchase internal or external
audit services, an agency relationship is formed. Governmental rules, professional ethics policies
and industry standards are put into place to further promote auditor objectivity in these situations.
Internal auditors are directly hired or contract employees of the company being audited. Their
overall objectivity might be doubtful as they need to satisfy management levels to get paid. Rules to
minimize bias focus on eliminating conflicts of interest. The audit result will be questionable when
there is conflict of interest between auditors and their employers. Effective internal auditors cannot
audit their own work or processes, functions
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5. Internal Audit Of A Business
While many people think of management and accounting positions when mentioning a business, one
important role that goes unnoticed is internal audit. Internal audit is an important part of a business.
Without internal audit, many businesses would be subjected to theft and fraud. One should note that
theft and fraud is not the only reason to have an internal audit. Having an internal audit system can
help a company protect against lawsuits from employees and customers. Placing policies and
procedures around a company's assets is crucial to the organization's success in the future. The
policies and procedures put in place by the Institute of Internal Auditors are guidelines the company
should not take lightly. Every year the company loses ... Show more content on Helpwriting.net ...
For example, 2013 was a rough year for companies trying to keep their customers' information out
of the hands of hackers. When Target was hacked in December of 2013, but released an official
statement in January, it was thought to be one of the largest security breaches in retail history. Many
people would expect supercenters like Walmart and Target to experience hackers trying to access
their system, but even more shock came when The Home Depot experienced a system breach. In
September of 2014, the company Home Depot was hacked. Home Depot hackers were able to
access more than 56 million credit and debit cards and over 53 million email addresses. According
to Michael Winter of USA Today, "Hackers used a vendor's stolen log–on credentials to penetrate
Home Depot's computer network and install custom–built malware that stole customer payment–
card data and e–mail addresses" (Winter). Routinely, hacker's use the log–on credentials of a vendor
and install malware. The same issue happened to Target when their system was hacked. Since
September of 2014, Home Depot has spent more than $62 million fixing their systems and offering
one year of credit monitoring services to
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7. Internal Audit as an Effective Internal Control System at...
CONTENTS
1. EXECUTIVE SUMMARY 2. INTRODUCTION     Literature Review Global Oil & Gas
Industry Overview Indian Oil & Gas Industry Overview Company Overview (ONGC) 2 4 6 6 20 23
24 26 28 38 39 40 41
3. INTERNAL CONTROL & INTERNAL AUDIT  Internal Control  Internal Audit  Standards
on Internal Audit 4. PROJECT PROFILE  Objectives  Research Methodology 5. LEARNINGS
& OBSERVATIONS  Learnings        Audit Scope & Coverage Or ganisation
Structure of IA Department Audit planning & process Audit approach & methodology Life cycle of
an audit Performance evaluation Quality systems
42 43 44 46 47 50 52 54 58 59 61 62
 Observations  Recommendations  Learning outcome 6. REFERENCES 7. ANNEXURE
Page 1
EXECUTIVE SUMMAR Y ... Show more content on Helpwriting.net ...
After several years of seeing more money pumped into internal audit in response to the requirements
of Sarbanes–Oxley, management is now looking to trim the budget. Internal audit 's oversight went
far beyond SOX, but because SOX dominated corporate priorities in recent years, audit teams were
staffed accordingly with many junior, "box–checking" resources. But now, many audit teams are
finding themselves exposed, lacking the skills required to deal with contemporary business risks.
The number and variety of business risks and related controls that IA needs to assess, monitor and
report on has grown exponentially in just a few years. Risks related to the supply chain, treasury and
financial instruments, fraud, systems, privacy, emerging markets, strained economic conditions,
corporate responsibility, regulation, subprime exposure and liquidity are just some of the new, niche
risks which have emerged and can require highly specialized auditing skills. At the same time, more
and more companies are expecting their IA teams to create value rather than just preserve it. With
pressure mounting to deliver more while paying less and to come to terms with skills gaps, IA is
undoubtedly at a crossroads in its evolution. Having the capability to deal with today 's business
risks requires a significant level of investment in skilled resources, methods, training, career paths
and technical infrastructure. Maintaining that capability requires a sustained level of
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9. The Relationship Between Internal Control Deficiencies And...
the Relationship Between Internal Control Deficiencies Severities and Audit Fees
1. Introduction
With the development of accounting and the occurrences of accounting scandals, such as Waste
management scandal, Enron scandal, and Worldcom scandal, internal control of a company has been
paid unprecedented attention. For companies, effective internal control activities can help
management to prevent and detect errors or frauds from accounting system so that they can have a
better operating circumstance. In 2002, the United State Congress passed Sarbanes–Oxley Section
(SOX) 404, which requires management to assess the effectiveness of a company 's internal controls
over financial reporting (ICOFR) and requires external auditors to review management 's
assessment, and then to provide their own conclusion related to the effectiveness of the ICOFR
(Choi, Kim, Kwon, & Zang, 2010). The Sarbanes–Oxley Section 404 indicates the rising concern
about accounting scandals in businesses due to ineffective internal control systems.
Internal controls of companies are to ensure the reliability of financial reporting, which are
developed by companies ' managements, thus, if a company has deficiencies in their internal control,
it will have a high risk of material misstatement over their financial reporting. Generally, the
likelihood in big firms that errors or frauds are appeared in accounting system is higher than the
likelihood in small firms (Hoitas, Hoitash, & Bedard, 2008). Audit risk
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11. Case Study: Internal Controls And Audit Procedures
Shannon Stein Grade 12/2 Accounting presentation task Task 1: Spur Internal Controls and Audit
Procedures of Spur The following report is based off the Spur Restaurant in Ruimsig. This report is
inclusive of the restaurants internal controls, its auditing systems, and its day–to–day operations. 1.
Internal Controls A 'Control' may be defined as: "Any action taken by the management of a business
to enhance the likelihood that the established objectives and goals are achieved." The internal
controls that are put in place are the policies and regulations that have been implemented, in order
for Spur to work in unison, towards its specific goals. By implementing these controls, Spur is able
to ensure that: Income and other ... Show more content on Helpwriting.net ...
The independent auditor cannot be an employee of the company, as this will bring his/her opinion
into question. The independent is appointed by the AGM by the shareholders with in Spur and not
the directors or managers. The opinion of the independent auditor must be prepared is such as way
as that the report is unbiased and is a true reflection of the companies activates. The report is not
complicated and hard to understand. That is has been prepared according to GAAP and that it is
comprised according to the Companies Act. Ruimsig Spur receives two independent auditor reports
from the Spur head office twice a year. Both of these reports are operational reports. The feedback
from these reports are based on the operational status of that specific Spur in terms of their books,
their working conditions, the cleanliness of the store and the food product being sold. 5. Role of
Internal auditors The internal auditor is put in place in order to ensure that the internal controls are
tested and assessed effectively. They are also out in place in order to monitor any possible fraudulent
activities within an
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13. The Impact Of Internal Audit On Employee Behavior,...
5.1 What is internal Audit?
The examination, monitoring and analysis of activities linked to a corporation 's operation, together
with its employee behavior ,business structure and information systems. An internal audit is
intended to assess what a company is doing in order to spot potential threats to the organization 's
strength and profitability, and to form recommendations for justifying the risk associated with those
threats in order to reduce cost.
5.2 What is its value to the organization?
Internal auditors deals with problems that are fundamentally important to the continuous existence
and prosperity of any organization. Contrasting external auditors, they look beyond financial risks
and statements and also considers wider issues such as the organization's growth, reputation, its
impact on the environment and also the way it manages its employees.
On the whole, internal auditors helps organizations to succeed. It's done through a combination of
assurance and consulting . The assurance part of the work involve informing the managers and
governors how well the systems and processes intended to maintain the organization on track are
working. Then, consulting is offered to help to enhance those processes and systems where ever
necessary.
5.3 Scope and Objectives:
The purpose of internal auditing is to support all members of the organization within the effective
discharge of responsibilities by furnishing them with appraisals, recommendations ,analysis,
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15. Internal Auditors : Internal Audit
Internal Auditors An internal auditor is an independent, objective assurance and consulting activity
designed to add value and improve and organization's operations. Internal auditors search for risk
that could potential cause a company to not reach their stated goals. In order for a internal auditor to
do their job effectively and efficiently, the executives must be willing to work with the internal
auditors through tough issues and be open for change and improvements. Internal auditors must
have the full support of the audit committee of the board of directors. Internal Auditors and
Management rarely have the same views but must work together for the better of the company.
Internal auditors pride themselves in saving their company from losing thousands some times
millions in revenue do to the risk that go undetected. Internal Auditors are responsible to offer
insight and advice to their corporations. Many times because of their expertise and knowledge of
controls, Internal auditors are consulted on projects to ensure that risks are considered and controls
are built into the process at the beginning of the project. Internal auditors offer insight on strategic
risk and advice to management to avoid any risk later on. Internal auditors evaluate the significance
risk and the negative effect it may have on the company in the present and near future. Internal
auditors are responsible to assess controls, to make sure that they are adequate to help when risk
threatens any
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17. Internal Audit Of An Organization
The internal audits in an organization provide numbers of services that are significantly important to
company management and help organization to succeed. These services include testing internal
control, assessing operational risk, detecting the misstatement, and monitoring compliance with
government regulation and policy. Institute of Internal Auditors (IIA) gives the latest definition of
internal audit is that: Internal audit is an independent assurance and consulting activity management,
aims to add value to organizations and institutions to improve operational efficiency. It takes a
systematic, disciplined approach to risk management, control and governance processes to improve,
and helping organisation to achieve its objectives.
Unlike external auditors form outside of the organization, they provide opinions mainly associated
with financial statements or risk problems on wider issues in business environment. Internal audits
as an independent department resides within the organization working in partnership with
appropriate authorities, having a larger coverage range than external audits in both financial and
non–financial area. Internal auditors also transformed to become a respected member in
management decision–making and internal control.
Nowadays, more and more attention has been paid on internal auditing. Drawing the lessons from
the scandal of Enron, Enron allowed an external accounting firm to take charge of company's
internal audit function, and consequently
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19. Assessing The Internal Audit Function
Assessing the Internal Audit Function
Auditing standards are published by the Public Company Accounting Oversight Board (PCAOB).
As such, the PCAOB published Auditing Standard Number 5 (AS 5), which recommends integrating
an audit of intern controls with the audit of a firm's financial statements (PCAOBUS, 2007). An
auditor's objectives of the internal controls audit and that of the financial statements are not
identical, and the auditor must perform the audits to achieve both objectives.
Internal Audit Objectivity Auditors of a firm's financial statements, be they external or internal
auditors, have the primary objective of providing users of said financial statements with an opinion
on the fairness of reported information to engender the confidence of said users (AICPA, 2012). As
such, auditors must adhere to requirements set forth by the Auditing Standards Board (ASB) of the
American Institute of Certified Public Accountants (AICPA). Among such requirements; objectivity
is essential in performing audit duties be they external or internal audit functions. Moreover, in
assessing internal controls and risks to the organization, internal auditors must also conduct
themselves with objectivity and independence (Tušek & Pokrovac, 2012). Whereas external auditors
are independent of the firm, internal auditors face more scrutiny of their objectivity as they are
employed directly by the firm of which they audit. Therefore, more important than independence is
objectivity to
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21. Internal Of An Internal Communication Audit
Task 2
2.1Internal corporate communications audit
The primary purpose of conducting an internal communication audit is to ensure the corporate
communication strategy in the organisation whether the proposed strategy meets the company's
goals. Audit can be processed by observations, analysis and evaluations, interviews, focus groups
and surveys of employees and other key stakeholders who support needed to improve the internal
communication strategy.
Internal communication audit process
Channel mapping
Personal interviews
Focus groups
Questionnaire
Analysis
Reporting
Feedback & action
Follow up survey
(Scholes, 1997)
2.2 conduct an internal corporate communications audit
Routine Operations of IT Unit: The Analysis
The IT unit in the Organization was analyzed for its working. The Organizational communication
strategy was observed closely, right after the new project requirements were handed over to the unit
head by the Business unit. The new project required Oracle as the technology. Apparently, the IT
head had no clue about the financials involved in acquiring the project from client. He did not look
keen on knowing anything apart from the technology that they would be working on, and the final

22. deadline that the client had asked for.
Information Flow from Business to IT unit
The information was listed as bullet points, printed on a plain white A4 sheet of paper, highlighting
the business requirements, important links, deadlines and the e–mail IDs of the members
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24. Role Of Internal Audit On The Organization Outside The...
MEMO
To: Non–accounting specialists
From: Miriam Lombe, Junior Accountant
Cc: Finance Director
Date: 15/12/2014
Subject: Role of Internal Audit
It has come to my attention that the role of internal audit is not clear to some members of the
organization outside the finance department. Therefore, it was decided that a memo is written to
explain clearly the role of internal audit.
Internal auditing is an independent, objective assurance and consulting function intended to add
value and improve an organization's operations. The audit function can help an organization to
achieve objectives by evaluating an organizations risk management, control and governance
processes to help improve them.
Internal auditors (IA) assess how well risks are being managed in an organization, how the
organization is being governed and how well internal control systems and processes are working.
They report their findings to senior management, highlighting and advising management where
improvements in systems controls and processes are necessary.
By evaluating an organization's risk management and assisting management in improvement of
internal controls, IA's help management to clearly show stakeholders that they are managing the
organization well.
Different from external auditors, IA's work within an organization and their work can vary
depending on the business requirements. They do not only look at financial risks and statements but
at a range of issues that are key to a company's survival
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26. Internal Audit Function and Fraud Detection in Government...
CHAPTER ONE
1.0 Introduction
This chapter will cover the background of the study, the statement of the problem, the purpose of the
study, the objectives, the research questions, and the scope, the significance of the study and the
structure of the report.
1.1 Background of the Study
According to Hector Perela, (2009), Internal auditing function with other intervention mechanisms
like financial reporting and external audit to helps maintain cost–efficient contracting between
owners and managers. It is designed by government agencies to add value and improve
organizational performance. It helps organizations accomplish their objectives by bringing a
systematic, disciplined approaches to evaluate and improve the effectiveness of risk ... Show more
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Farmers must select activities that will result in marketable, profitable goods, with low production
costs and about which there is ample knowledge in the district.
One challenge for NAADS is that it spreads very slowly. It does not target whole villages, only
groups of people, and then only a few members of a group get assistance initially, while other
members wait sometimes for a up to a year before getting any much needed support.
When it began, the service was only offered to 24 sub–counties in six districts. It has since spread to
all 79 operational districts, but is still only reaching a few farmers in a few sub–counties within
them, which means many farmers are not served.
A 2007 study by the International Food Policy Research Institute (IFPRI) found that while NAADS
had promoted the use of improved production technologies and high–yielding crop varieties, only a
few farmers were using them even within sub–counties where there service was operating. As a
result there was no difference in yield growth between NAADS sub–counties and those without its
assistance.
In early 2009, a report by Uganda's auditor general concluded that 63% of money allocated to
NAADS activities was wasted because farmers disliked classroom–style training given by
contracted service providers. The Ugandan president, Yoweri Museveni, publicly condemned this
approach to training as
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28. Analysis of Internal Audit Function in Poland Empirical...
B USINESS, MANAGEMENT AND EDUCATION
ISSN 2029–7491 print / ISSN 2029–6169 online
2011, 9(2): 236–247 http://dx.doi.org/10.3846/bme.2011.16 ANALYSIS OF INTERNAL AUDIT
FUNCTIONING IN POLAND –
EMPIRICAL RESEARCH FINDINGS
Edita Bielińska–Dusza
Department of Strategic Analysis, Cracow University of Economics, ul. Rakowicka 16, 31–510
Kraków, Poland
E–mail: [email protected]
Received 18 November 2010; accepted 15 January 2011
Abstract. The purpose of the article was to present the research conducted in companies, concerning
the functioning of internal audit in Poland. During the research, the author identified a number of
barriers reducing the efficiency of the cells of internal audit and audit as an instrument for company
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On the other hand, the private sector includes: companies of national natural persons, companies of
other national private entities, companies of foreign entities.
2
In the public sector the obligation of internal audit implementation is regulated by acts and
regulations such as, among others: the Act of 27 July 2001 on the amendment of the Act on public
finance, of the Act on organization and operating mode of the Council of Ministers and the scope of
operation of ministers, of the Act on activities of government administration and of the Act on civil
service, Journal of Laws 102(1116): 7483–7493; The Act of 30
June 2005 on public finance, Journal of Laws 249(2104): 27–34, with later amendments;
Announcement No. 1 of the Minister of Finance of 30 January 2003 on announcing "Standards of
financial control in public finance sector entities", Official Journal of the Minister of Finance 3(13):
1–8; Announcement No. 11 of the Minister of Finance of 26 June 2006 on standards of internal audit
in public finance sector entities, Official Journal of the Minister of
Finance 7(56): 1–13. Announcement 16/2006 of the Minister of Finance of 18 July 2006 on
announcing "The code of ethics of the internal auditor in public finance sector entities" and "The
card of internal audit in public finance sector entities", Official Journal of the Minister of Finance
9(70): 1–6.
Regulation of the Minister of Finance of 10 April 2008 on the detailed
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30. Managing An Internal Audit Department
Joan Tsai
BUAC 786
03/22/17
Extra Credit Assignment
1. A company might decide to establish an internal audit department because an effective and
independent internal audit department add values and improve effectiveness of risk management,
control, and governance processes. It also helps prevent and detect the frauds.
2. Even though The Schwan Food Company is a private company, since the company's goal was to
double its size in five years, establishing an internal audit function could provide assurance and
consulting services to help the company achieve its objectives and expand globally. The four factors
that may have caused The Schwan Food Company to change its internal control practices and
corporate governance structure are,
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Independence is extremely important, necessary, and appropriate because without an independent
IAD, IAD's objective of adding values and improving business operations cannot be achieved.
Independence is also a key component in Attribute Standard. Accountability section states the chief
audit executive's responsibility to the management and audit committee. It is necessary and
appropriate because it leads to significant communication between the CAE and top management
and between the CAE and the Board; it also helps ensure that the standards and requirement of the
internal auditing function is achieved.
5. Company's new CAE can explain to the non–audit employees that IAD's objective is to add
values and help improve the business processes as well as company performance, which will affect
each employee significantly. It is important to let all employees understand that the answers or
thoughts they provide to the internal auditors will not be used against them. Moreover, establishing
good relationship and providing ongoing communication with the non–audit employees can make
them feel more comfortable to share their feedback and thoughts, and can reduce the "us vs. them"
relationship between company's non–audit employees and the staff of internal auditors.
6. A charter might
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32. Audit Report And Internal Control Evaluation
Audit Report and Internal Control Evaluation
Audit Report and Internal Control Evaluation
Nathalie Salib
University of Phoenix
ACC546/PR
April 9, 2015
Prof. Rafael Marrero – Diaz
ANDERSON, OLDS & WATERSHED
Certified Public Accountants
Independent Auditor's Report
To the Board of Directors of Apollo Shoes, Inc.
We have audited the accompanying balance sheets of Apollo Shoes, Inc. as of December 31, 2007
and 2006 and the related statements of income, shareholder's equity and cash flow for the two years
in the period ended December 31, 2007. Apollo Shoes' management is responsible for the financial
statements presented, for maintaining effective internal control over financial reporting, and for its
assessment of internal control. ... Show more content on Helpwriting.net ...
Our audit of internal control over financial reporting included obtaining an understanding of internal
control over financial reporting, evaluating management's assessment, testing and evaluating the
design and operating effectiveness of internal control, and performing such other procedures as we
considered necessary in the circumstances.
A company's internal control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting principles (GAAP). A

33. company's internal control over financial reporting includes those policies and procedures that (1)
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the company
are being made only in accordance with authorizations of management and directors of the
company; and (3) provide reasonable assurance regarding prevention or timely detection of
unauthorized
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35. Internal Control Audit Standards
Jurgen Skembi Homework5 Internal Control Audit Standards a. For what purposes should an
auditors' understanding of the internal control components be used in planning an audit? An
auditors' understanding of the internal control components should be used for 3 reasons: a) To
identify the potential misstatement that might occurs b) To identify the factors that affect the risk of
material misstatement c) To influence the design of substantive procedures b. What is required for
an audit team to assess control risk below the maximum level? It is required for an audit team to
assess control risk below the maximum level to identify specific control procedures and policies
relevant to specific assertions that ... Show more content on Helpwriting.net ...
If the scope limitation is due to inability to gather sufficient evidence regarding to potential material
weaknesses, it is necessary to include the definition of the material weakness as well. d) Modify the
opinion paragraph, by stating that "the scope of our work was insufficient to enable us to express an
opinion, so we don't express an opinion". c. Other auditors have audited a significant component of
the company, including internal control over financial reporting relating to the component. If the
auditors conclude that the internal control over financial reporting is not maintained effectively by
management, auditors should express an unqualified opinion on management's assessment of
internal control over financial reporting. On the other hand, an adverse opinion should be issued on
the effectiveness of the company's internal control over financial reporting. ▪ The modification that
are needed to be made: a) Modification of introductory paragraph, stating that the management's
assessment didn't maintain an effective internal control over financial reporting. b) Adding a
paragraph that defines any material weakness identified during the audit. c) Modification of opinion
paragraph, stating that because of the effect of the material weaknesses captured, the company has
not maintained an effective internal control over financial reporting. d. The auditors believe that the
entity's management has
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37. Internal Controls And The Audit Process
During the audit of the financial statements we will be assessing the internal controls in use as
mandated by the Sarbanes–Oxley Act of 2002. The act was designed to enhance corporate
responsibility as it relates to financial reporting issues. Section 404 covers the internal controls that
have been setup by the company. Internal controls are designed to protect the assets of a business
from misuse or loss. Internal controls also help the business to streamline processes so that goals can
be achieved at the best rate of return from the use of available assets. The remainder of this letter
contains an overview of section 404 and other regulations relating to the audit of internal controls
and a synopsis of internal control risks that have been identified within Apollo Shoes Inc. We will
also describe the relationship between internal controls and the audit process as well as outlining our
responsibilities in detecting and reporting fraud.
Section 404 of the act requires all publicly traded companies establish internal controls and
procedures for financial reporting. The system of controls must be documented, tested, and
maintained to ensure their effectiveness. To comply with section 404 Apollo Shoes Inc. has to
submit an annual report that details the four following key elements;
 Statement of responsibility issued by Apollo's chief executive officer and the chief financial
officer for establishing and maintaining adequate internal control structure and procedures
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39. Companies Frequently Conduct Internal Audits Of Their...
Companies frequently conduct internal audits of their business operations. Internal audits are
conducted in a professional manner, designed to provide company management with an unbiased
and objective view of how the company is operating. Often times the process is conducted by an
outside agency, or a privately hired internal auditor.
Some companies have a full staff employed to perform continuous audits of various operations.
Normally there is specially appointed audit committee, overseen by the company board of directors,
or trustees. Internal auditors report directly to this established committee and will often be asked to
make recommendations to both the board of directors and upper level management.
Definition of an Internal Audit ... Show more content on Helpwriting.net ...
Most of the adjustments will pertain to protection of employee rights to privacy, plus sensitive
copyright, patent, or trademarks.
· Official Notification
All internal audits are announced. Only external audits from outside agencies are scheduled without
the prior notification of all parties involved in the audit. External audits are usually to uncover a
legal or ethical violation, whereas internal audits primary purpose is to prevent such. Department
heads, supervisors and all employees involved are usually given written notification prior to the
conduction of an internal audit.
· Document Requests
Once the organization, business and all necessary parties have received official notification, the
auditor will make a formal request for all documents stated in an audit preliminary checklist. This
checklist requesting documents is usually attached to the notifications.
It may contain a duplicate of any previous audits, financial statements, receipts, ledgers, production
reports, or employee performance evaluations. The auditor may ask for profit/loss projection charts,
copies of board of directors meetings and committee minutes. Internal auditors that are not part of
the company staff, will also request bylaws, employee rules and standards, plus an compliance
management policies.
· Audit Plan

40. The auditor will review the information enclosed in the documents and
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42. Use Of Internal Audit By Australian Companies
The use of internal audit by Australian companies
Abstract: The main purpose of this study is to identify the reason behind the voluntary use of
internal audit by public listed companies and to determine the factors that lead listed companies to
have an IA function. There are number of reasons behind the implementation of IA function and it is
strongly related with risk management, indication of effective internal controls and efficient
corporate governance. This study is based on the work done by Jenny Goodwin–Stewart and Pamela
Kent(2006). They examined and study the data from the annual reports of public listed companies.
This paper also provides detailed information on the need of Internal Audit and examines the
relationship between ... Show more content on Helpwriting.net ...
Internal audit as a risk management mechanism Internal auditors can add value to the entity by
providing assurance that its risk exposures are properly understood and managed (Walker et al.,
2003; Leithhead, 1999). Internal audit should play a key role in monitoring a company's risk profile
and identifying areas to improve risk management processes (Lindow and Race, 2002). As Walker et
al. (2003, p. 52) assert, internal audit can "help organizations identify and evaluate risks, moving the
profession into the front line of risk management". We would therefore expect there to be a link
between the use of internal audit and the company's commitment to sound risk management. A
strong organizational commitment to managing risks requires the development of a risk–based
culture within the company (Kwan, 1999). Such a culture is established by the practices of senior
management and the board of directors (Steinmetz and Arthus, 2001) and should result in the
development of an integrated risk management framework (Kwan, 1999). One indication of an
integrated framework is the existence of a separate committee or group responsible for risk
management, comprised of directors and senior management. Internal audit can then provide the
required support to ensure that internal controls are in place to adequately monitor the identified
risks. We therefore predict that those companies that have established a separate risk management
committee are
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44. Effects Of Internal Audit Practices On Financial...
EFFECTS OF INTERNAL AUDIT PRACTICES ON FINANCIAL PERFORMANCE OF
COMMERCIAL BANKS IN KENYA (A CASE STUDY OF KENYA COMMERCIAL BANK)
GIDALI MUHINDI FRANKLINE A Research Proposal in Partial Fulfillment for the Bachelor of
Business Administration of the Technical University of Mombasa 2016 DECLARATION I declare
that this research proposal is my original work and has not been presented for a degree award in any
other university. Signature................................. Date.............................. Gidali Muhindi Frankline.
BBA/048J/2013. This project has been submitted for examination with our approval as university
supervisors. Signature_________________________ Date: ______________________
Ms.Umulkulthum Musa Yeya. Technical University of Mombasa. DEDICATION This research
proposal is dedicated to my father who taught me that the best kind of knowledge to have is that
which is learned for its own sake and that learning is a treasure that will follow its honor
everywhere. It's also dedicated to my mother who taught me that even the largest task can be
accomplished if it is done one step at a time since ,opportunities are usually disguised as hard work
so most people don't recognize them. ACKNOWLEDGEMENT First and above all, I would like to
thank God, the Almighty for granting me the capability to write this research proposal. Madam
Umulkulthum Musa Yeya has been the ideal research proposal supervisor. Her sage
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46. Internal Audit Management
Internal Audit Management – The Challenges
The current business environment has turned the spotlight on the role that a internal audit system
must play within the larger drive towards effective governance, risk, compliance and quality
management. An internal auditor has to work as a Technology savvy in–house that not only reports
problems, but also gives constructive suggestions to line managers about how to improve the
performance of the business. As a result, the internal auditing and corporate control environment are
receiving increased attention and resources, necessary to comply with the regulations.
Despite the increased exposure and training from executive management, internal audit departments
face many challenges. A few of them have been discussed below:
Risk Strategies:
The credit crisis and resulting uncertain economic conditions have forced organizations to scrutinize
their risk exposures in greater detail. Most of the organizations, however, support quick developed
risk management strategies. "Audit committees are taking a hard look at risk management processes,
with a particular focus on the quality of risk inventories and assessments, as well as the usefulness
of management's risk reports. Key challenges include identifying risks in early stages, and preparing
to properly deal with consequences.
Limitation of resources
In todays globalized world large companies operate in multiple countries. Large distances separate
corporate headquarters from offices
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48. Internal Audit Report On The Audit
1. The internal auditors report directly to the CEO and the CEO is the one who decides on the audit
plan.
Control Weakness: The CEO sets up all the meetings that take place between the internal auditors
and the audit committee and the director of the internal audit department doesn't have outside access
to the audit committee. Although the internal audit department is in charge of giving a presentation
to the audit committee, the CEO must filter everything that is reported (including all
documentation). Also, whenever there tends to be questions in regards to the receiving, processing
or manufacturing functions, the CEO just refers the auditors to the Human Resources department,
instead of going into detail on the issues that are raised. ... Show more content on Helpwriting.net ...
This organizational structure is useless and does not allow for effective internal control over
financial reporting. The CEO can easily steer the internal auditors away from key issues. Objectivity
of information is compromised because the internal auditors can simply be under pressure to
misstate financial statement account balances.
Recommendation: The internal auditors need to report directly to the Audit Committee, and not the
CEO. By doing so, the internal auditors will be able to work independently outside of management
control. This will allow for the internal auditors to exercise due care about issues raised that can be
conflicting with the CEO's agenda. Internal auditors must have direct access to the audit committee
so that they are able to report on significant deficiencies that arise and to be able to address these
deficiencies with management. Furthermore, the overall control environment can be improved and
risk assessment can decrease if there is that open communication between the auditors and
management. 2.The machine operator's pay is contingent on the number of spheres that go through
helixination.
Fraud Risk: This is a fraud risk because the machine operator's economic incentives can have a
drastic influence on the production process. The operator can push green spheres through the
helixination process and still can get paid
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50. Internal And External Auditing Audit Essay
According to Kieso, Weygandt, and Warfield (2013), "an auditor is an accounting professional who
conducts an independent examination of a company's accounting data" (p. 1508). In other words,
auditors are independent agents that ensure the accuracy of financial statements. Although internal
and external auditors play different roles with an organization, they must follow auditing standards
and procedures to detect fraud.
In 1941, The Institute of Internal Auditors (IIA) was founded to provide guidance to internal
auditors (Whittington & Pany, 2014). "With over 170,000" international members, "the IIA has
paralleled the recognition of internal auditing as an essential control function in all types of"
businesses (Whittington & Pany, 2014, p. 778). In the United States, nearly every large corporation
maintains a staff of internal auditors (usually employees and not independent contractors) to identify
theft, waste, and fraud (O'Donnell, 2015; Whittington & Pany, 2014). Besides examining the
financial statements, internal auditors also analyze the internal control of organizations (O'Donnell,
2015). That is, they are responsible for enhancing a company's operations. For instance, internal
auditors may evaluate the risk to a corporation's reputation if they use low–wage workers in third–
world countries (O'Donnell, 2015). In addition, they may investigate why products are getting
overproduced compared to the available resources or inspect the quality of the finished
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52. The Objectives Of Internal Audit
Introduction
Internal Audit is an independent, objective, assurance, and consulting activity designed to add value
and improve operations. It helps accomplish objectives by bringing a systematic, disciplined
approach to evaluate and improve the effectiveness of governance, risk management, and control
processes.
Internal Audit is organized to examine and evaluate current and proposed processes and controls.
The objectives of Internal Audit are to:
1. Promote effective and efficient controls through audits, reviews and objective consulting
arrangements.
2. Pursue effective corrective action to the root cause of significant issues.
3. Assist Senior Management in the effective discharge of their duties by furnishing them with
analysis, ... Show more content on Helpwriting.net ...
The Institute of Internal Auditors ' "Practice Advisories" will be adhered to as applicable. Internal
Audit will also adhere to company policies and procedures.
Organization
The Director of Internal Audit will report administratively to the Deputy Commissioner – Audit &
Investigation. If situations occurs; whereas, independency and objectivity is at risk, the Director of
Internal Audit can report the situation to the Commissioner of the BMV and/or other regulatory
agency (the State Board of Accounts, Indiana Inspector General, etc.).
Independence and Objectivity
To permit maintenance of an independent and objective mental attitude necessary in rendering
reports, all internal audit activities will remain free of influence by any element in the organization.
This freedom from influence includes matters of audit selection, scope, procedures, frequency,
timing, or report content. Internal Auditors will perform their duties in such a manner that they
believe in their work product and that no audit quality compromises are made. Internal Auditors may
not subordinate judgment related to their audit duties to anyone.
Internal Auditors will have no direct operational responsibility or authority over any of the activities
they review. Accordingly, they will not develop or install systems or procedures, prepare records, or
engage in any other activity which would normally be audited.

53. Authority
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55. Internal Audit Challenges And Effects Of Sarbanes Oxley Act
Internal Audit Challenges and Effects of Sarbanes–Oxley Act.
Carmen J Maurella III
AC503: Advance Auditing
Kaplan University
Introduction
The proceeds of the preliminary of SOX and also the increase essential of company governance
within the many likenesses, there has been the formation of new restrictive agencies. Existing
restrictive agencies were made two administer the audit of public firms. There 'll presumably be
additional restrictive investigations by the SEC as a result. The SOX legislation has been designate
two forestalled and establish several of the recent frauds operation organizations and their investors.
As an issue, the audit profession can all over again gain numbers, but This point the role and
methodology of the interior audit, perform can modify for satisfy necessities of the new legal
mandates.
Business organizations are now being challenged to review, alter, and appraise their undivided
business to satisfy the established needed misdate of compliance for monetary coverage. As a result,
internal auditing and also the company management setting are retained exaggerated attention and
resources necessary to adjust to the vigorously enacted legislation. Government Management and
Boards of Administrator's are trying to internal audit these days with a way of urgency to supply
them with tier of trust on the general company management setting. Before their external auditors
provide any evidence of an ineffective administration setting.
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57. Internal Audit Of The California Department Of Public...
INTRODUCTION
In compliance with the Colorado Department of Public Health and Environment (CDPHE) Internal
Audit Charter, we have completed an audit of the internal controls on sole source contracting
throughout the department. Our audit was conducted in accordance with the Standards for the
Professional Practice of Internal Auditing.
Sole Source purchases are defined as those purchases where only one vendor for the good or service
being acquired is available. State Procurement Rules R–24–103–205, allows a Sole Source
declaration to be made by the Purchasing Agent on a purchase when one or more of the following
conditions are met: (i) where the compatibility of equipment, accessories, or replacement parts is the
paramount consideration;
(ii) where a sole supplier 's item is needed for trial use or testing;
(iii) where public utility services are to be procured.
PURPOSE
Our overall audit objective was to ascertain whether the department has sufficient controls to ensure
that sole source contracts are used in compliance with the State Procurement Code.
Within the overall audit objective, specific goals included determining whether:
Divisions have proper procedures in place to determine if a vendor is the only vendor available to
provide the goods or services.
Divisions are properly documenting their research and results for contract files.
SCOPE AND METHODOLOGY
Our study and evaluation were conducted in accordance with the International Standards for the
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59. Questionnaire Analysis And Interpretation Of Internal...
Questionnaire Analysis & Interpretation
1) Taking into consideration the scope/objectives and responsibilities of the internal Audit functions,
to what extent do you feel that Internal Audit meets expectations?
Option No. of Respondent Percentage of respondent Meet Expectations 34 75.55% Does not meet 5
11.11%
Expectations
Does not comment 6 13.34% Total 45 100%
2) How confident are you to depend on the conclusions drawn or recommendations made by the
Internal Audit function?
Option No. of Respondent Percentage of respondent Completely Confident 7 15.55% Somewhat
confident 32 71.11% Not at all confident 2 4.44% Does not comment 4 8.88% Total 45 100%
3) To what level do you believe that the work done by the internal Audit improves the overall
internal control of the organization?
Option No. of Respondent Percentage of respondent Improves greatly 2 4.44% Somewhat improves
24 53.33% Does not improve 6 13.33% Don't know/ not 13 28.88%
Sure
Total 45 100%
Q.4.Do you suppose that the work done by the IA( Internal Audit) team helps in identifying and
improving the overall risk of the organization?
Option No. of Respondent Percentage of respondent Agree 15 33.33% Neutral 20 44.44% Disagree
10 22.22% Total 45 100%
5) Do you appreciate that the IA (internal audit) team is proactive?
Option No. of Respondent Percentage of respondent
Agree 2 4.44% Neutral 30

60. ... Get more on HelpWriting.net ...

62. Internal Audit Department 's Independence And Objectivity
As requested, I have prepared the following memorandum with the aim of reassuring senior
management about the internal audit department's independence and objectivity.
I have provided detail on consideration of independence and objectivity, based on guidance from the
International Institute of Internal Auditors (IIA). I have also charted steps should taken by TechNet
to ensure the internal audit department's independence and objectivity.
The Institute of internal Auditors (IIA) defines independence as "the freedom from conditions that
threaten the ability of the internal audit activity to carry out internal audit responsibilities in an
unbiased manner."
IIA defines objectivity as
"An unbiased mental attitude that allows internal auditors to perform engagements in such a manner
that they believe in their work product and that no quality compromises are made."
The internal audit department at TechNet is in compliance with the IIA's International Standards for
the Professional Practice of Internal Auditing. Attribute Standards 1100 of the IIA require that "the
internal audit activity must be independent, and internal auditors must be objective in performing
their work."
Independence refers to the liberty of the internal auditor to carry out activities in an unbiased
manner.
Objectivity refers to an unbiased mental attitude of the internal auditor without subordinating their
judgement (findings) to others.
To assist in achieving independence and objectivity the IIA
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64. Internal Audit : An Essential Tool For The Payroll Function
Internal Audit is an essential tool available to the payroll function.
"The role of internal audit is to provide independent assurance that an organization 's risk
management, governance and internal control processes are operating effectively"
What is internal audit? (2015)
As a new payroll system was recently installed our internal auditors were asked to look at the
robustness of the payroll controls in place.
A comprehensive test was carried out and a few areas of concern were raised.
These were mainly around separation of duties as the Payroll Officer had complete authority over
the payroll function, from inputting all documents to producing and submitting the BACS file.
Although no instances of fraud were found it was highlighted as a major area of risk to have one
individual in charge of the complete payroll process.
Following on from the internal audit report further controls have been built into the payroll process.
1) The Human Resources Module was added to the Payroll software, consolidating the payroll and
HR databases in a single entity. All new starters and contractual changes are now input by Human
Resources prior to the Payroll Officer calculating the pay.
2) Audit files of input of each user produced on a monthly basis.
3) The Finance Officer to check the payroll prior to the BACS file being created.
4) The Payroll Officer to prepare the payroll, the Company Accountant to authorise the payroll and
send the bacs file.
At the end of every
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66. Internal Audit
Introduction
This report aims to investigate the role Internal Auditors (IA) plays in certain aspects of corporate
governance. The report also aims to investigate what is considered as good corporate governance.
"Corporate governance is the system by which companies are directed and controlled. It deals
largely with the relationship between the constituent parts of a company – the directors, the board
(and its sub–committees) and the shareholders" (Berr, 2008)
Corporate governance is necessary because of the problems caused by the divorce of ownership and
control in modern organisations. In order to protect the stakeholders of an organisation, regulators
addressed the problem by introducing corporate governance frameworks that ... Show more content
on Helpwriting.net ...
The results shows that 86% percent of the firms using the advanced ERM stated better decisions
were made due to their ERM system which is 28% then all the other companies, this is the highest
ranked category for both groups of firms. There is a 47% and 45% difference with manager's
responsibility between the two groups of firms. The firms' using advanced ERM also finds it easier
with the regulatory compliances and also has a better pricing tool. The firms using advanced ERM
are doing better in all the categories and also by a significant margin.
Table 1
Comparison of ERM Experience Advanced ERM Companies All Other Companies Rank Percent
Rank Percent
Better informed decisions 1 86 1 58
Greater management consensus 2 83 5 36
Increased management accountability 3 79 7 34
Smoother government practises 3 79 3 39
Ability to meet strategic goals 5 76 5 36
Better communication to board 6 69 2 52
Reduced earnings volatility 7 62 4 37
Increased profitability 8 59 8 33
Use risk as competitive tool 9 56 9 22
Accurate risk adjusted pricing 10 41 10 21
(Gates, 2006)
Table 2
Services Provided by Internal Auditors (multiple answers allowed)

67. Departments Percentage
Internal/ Operational Audits 97
IT Audits 71
Financial Audits 71
Advice on Risk Management 66
Consulting Activities 64
Support in Control Risk Self Assessment 53
Management Support 52
Health, Safety and Environment Audits 20
Quality Audits 11
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69. Fice Of Internal Audit
Introduction: Internal Audit, as characterized by the Institute of Internal Auditors, is a free, objective
assurance and counseling action intended to include esteem and enhance an association 's
operations. It helps an association to perform its targets by bringing an orderly, restrained way to
deal with assess and enhance the viability of risk management, control, and administration forms.
The motivation behind the Office of Internal Audit is to give quality reviewing administrations to
guarantee the sufficiency and viability of the retailer of inward controls and the nature of execution
by different operations.
Internal Audit, as characterized by the Institute of Internal Auditors, is a free, objective assurance
and counseling action intended to include esteem and enhance an association 's operations. It helps
an association to perform its targets by bringing an orderly, restrained way to deal with assess and
enhance the viability of risk management, control, and administration forms. The motivation behind
the Office of Internal Audit is to give quality reviewing administrations to guarantee the sufficiency
and viability of the retailer of inward controls and the nature of execution by different operations.
Distinguishing and tending to risk is uniquely one of an association 's most vital duties for its
personnel, shareholders, suppliers furthermore, clients. Contemplations identified with information
technology are the key to any association 's push to guarantee that
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71. The Relationship Between Internal and External Audit
THE RELATIONSHIP BETWEEN INTERNAL AND EXTERNAL AUDIT
Professor PhD Atanasiu Pop, „Babeş–Bolyai" University of Cluj–Napoca, e–mail:
[email protected] PhD Student Cristina Boţa–Avram, „Babeş–Bolyai" University of Cluj–
Napoca, e–mail: [email protected] PhD Student Florin Boţa–Avram, „Babeş Bolyai"
University of Cluj–Napoca, e–mail: [email protected] ABSTRACT: Analyzing the
evolution process of internal audit, from its beginnings and so far, we can easily notice that internal
audit function was born through detaching of some activities from external audit, the result being
that there some situations when these two functions could be easily confused. The reality is that
internal audit and external audit are two distinctive ... Show more content on Helpwriting.net ...
This survey was conducted of two groups: first group was represented by internal audit directors,
and the second group was formed by staff auditors who work directly which external auditors. Both
groups were asked to evaluate the overall performance of their organization's external auditor and
their perceived relationship with the external auditor. Next, we present the main results obtained
through this survey: ♦ 92% from internal audit directors appreciated that external auditors make full
use of the expertise of the internal audit staff; ♦ 50% of internal audit directors perceived that
relationship between internal audit and external audit is an "excellent" one, while 31% appreciate
this relationship as "good"; ♦ Staff auditors differed substantially in their perceptions of the external
auditors' of the internal auditor's expertise. Only 39% of staff auditors considered that the external
auditors fully utilized their expertise; ♦ Starting from the statement of Morris N. (Morris N., 1981)
that "the external audit firm has the ear of the board of directors and, where one is established, the
audit committee. Internal auditors do not have the same relationship", Peacock E. and Pelfrey S.
wanted to identify the relationship between internal audit and audit committee. From this point of
view, more that 80% of the respondent directors of their study indicated that their companies have
an audit committee, and that the internal audit
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73. Internal Audit Current Issue
8.0 Background
According to Wikipedia, Internal auditing is a profession and activity involved in helping
organizations achieve their stated objectives. It does this by using a systematic methodology for
analyzing business processes, procedures and activities with the goal of highlighting organizational
problems and recommending solutions. Professionals called internal auditors are employed by
organizations to perform the internal auditing activity. Internal auditors are employed by companies
to do both financial and operational auditing. Their role in auditing has increased dramatically in the
past two decades, primarily because of the increased size and complexity of many corporations.
Because internal auditors spend all of their time ... Show more content on Helpwriting.net ...
Relying on the internal audit staff for performance of some of the audit testing may allow the audit
to be completed in less time and for a lower fee. When direct assistance is provided, the external
auditor should assess the internal auditors' competence and objectivity. The work of internal auditors
should be supervised and evaluated as appropriate under the circumstances.
8.1 Are internal auditors encroaching on the external auditors' role?
External and internal auditor had different objective this is the external auditor seeks to test the
underlying transaction that form the basis of the financial statements whereby the internal auditor
seek to advice management on whether its major operations have sound system of risk management
and internal controls or in the other words, internal auditor verify corporate operational activity
based on documented policies and procedures to determine whether business objective (profitability
and regulatory compliance) will achieve and the answer to the entity's' governing board or
management and external auditors provide reasonable assurance that managements' assertions over
the subject matter (financial statement, compliance) is fairly stated in all material aspects by either
error or fraud and they must be independent.
Both internal and external auditor had professions adhere to codes of ethics and professional
standard set by professional associations but the major different are
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75. Tyco Internal Audit Case Study
2.3 Breach of duties by Internal Auditor
According to the Institute of Internal Auditors (IIA), (2011), the internal auditing is a team of
consultants, a department and a division or other practitioner which independent, have objective
assurance and conduct a consulting activity which is designed to add value and improve the
organization operations. The internal auditor can help an organization in achieving its objectives by
bringing a discipline and systematic approach in order to improve and evaluate the effectiveness of
risk management, control and governance process.
The internal auditor have a several roles in the company which is the first one the audit committee
need to discharge and restrict the governance responsibilities and the ... Show more content on
Helpwriting.net ...
Integrity also can be defined as meaning of someone of high moral character who is always stick
with the principles no matter the pressure ought to do otherwise. The straightforward in dealing with
any relationships with the constituencies or different people is very crucial because trust is vital in
every relationships and belief in the integrity of those with whom you are dealing. For the integrity
in corporate governance is more or less required in financial reporting because it should be present
with a balanced picture of the company matters and also it should be honest. According to the
Cadbury Report, the integrity in presenting the reports in depending on the integrity of whom is
preparing such
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77. How Internal Audit Is An Important Part Of The Company...
How does internal audit participate in risk management?
Abstract
Internal audit is an important part of the company management system, it is the company 's core
business group. But how does it participate in risk management? This essay will have a short discuss
on it.
Introduction
"Practice of Internal Auditing Standards" of the internal audit made a clear definition: Internal
auditing is an independent, objective assurance and consulting activity designed to add value for the
organization and improve the operational efficiency of organizations. It uses a systematic,
disciplined approach to evaluate and improve risk management, control and governance processes to
help organizations achieve their goals (SPIRA, L. F. & PAGE, M. 2003). ... Show more content on
Helpwriting.net ...
In this environment, in order to enhance the efficiency, company need to establish an independent
control system. As a further control of the company, the various departments of enterprises can be
effectively supervised by internal audit to achieve internal supervision and self–discipline of
enterprises (BEASLEY, M. S., & HERMANSON, D. R. 2005). Therefore, the internal audit system
is established to achieve self–improvement, serve as an important part of the objective requirements
of internal oversight, but also part of the company management system.
Internal Audit on behalf of the Board of Directors should belong to the core layer of the corporate
who perform oversight functions, the Board is the highest level group of companies, so the internal
audit is part of the core layer of the board of directors has supervision and management behavior
evaluation in favor of enterprises (BEASLEY, M & HERMANSON, D). 'If internal audit belongs to
other departments of company, such as the general manager, although it is closer than the board of
directors, supervision can be combined with the reality, but general manager of the company does
not do decision–making but only execute it, and therefore the independence of the audit process will
be affected (FELIX L. & GRAMLING, A 2001).' As part of the board of directors, internal audit has
a higher level of audit independence and the authority are guaranteed conducive to internal audit
should
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79. The Independence Of The Internal Audit Function
This paper critically analyses the independence of the internal audit function through its relationship
with management and the audit committee. Given the growing role of internal auditing in
contemporary corporate governance and independence has gained renewed attention.
INTRODUCTION
The role of internal audit is to provide independent declaration that an organization's
threatadministration, governance and internal control processes are functioning effectively. Internal
auditors deal with concerns that are essentially important to the existence and success of any
organization. Unlike external auditors, they aspect beyond financial possibilities and statements to
reflect wider problems such as the organization's reputation, development, its power on the location
and the approach it treats its organizations.In summary, internal accountantssupport organizations to
thrive.
The Specialized accountants deliberates to those who are compensated employees, associates,
executives, owner or the organization and ... Show more content on Helpwriting.net ...
This includes the indirect ability of management to influence the career prospects of internal
auditors, as well as the budget and planning of the internal audit function. This is exacerbated by
internal auditors themselves using the function as a stepping stone to advance their career
objectives. It also can be argued that the independence theory may be lost in such a culture,
especially if it is combined with people within the organization perceiving internal auditors as
partners, thereby subjecting the internal audit function to pressures threatening its independence,
rather than recognizing the internal audit function as an independent assurance function("A Critical
Analysis Of The Independence Of The Internal Audit Function: Evidence From Australia:
Accounting, Auditing & Accountability Journal: Vol 22, No
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81. Assist The Conduct Of Internal Audit
1875
Assist the conduct of internal audit
4/7/2015
Meenakshi
TASK 1
1.1.1
INTEGRITY: Integrity is the main moral objectives or principal of the company.
Methodology aims of financial records:
All financial statements made very fairly and profitable.
Using the best financial standards techniques and book keeping methods.
Accounts made by just the master bookkeeper.
Provide the independent objective examination of the financial statements.
In financial records mainly focus on internal controls of financial records.
All the bank checks consistently issued by the company.
1.1.2
Methodologies developed be implemented:
Methods are an important part of a company to help maintain the proper documentation. Such
methods can be used in society PIFCO ZEN CHEN. This leads to eliminate missed deeds of all
financial documents of the company or the head of the company, as Director such methods in the
company. The director of the company also has management of all a law firm. Director should all
actions taken into account by all employees. Such actions are any of the financial or accounting
records. The auditor checks for each manipulation in numbers or accounts. So you must have in
mind, what are the accounts clear and all the information is correct.
1.2
Warehouse have 25$ million worth of the stocks and that's overvalued stock.
No provision has made by warehouse while the debtors accounts worth is 9$million.
They disclosure the overdraft facility and that's not
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83. The Audit Report And Internal Control E
The Audit Report and Internal Control Evaluation
Team D Auditing has been evaluating the evidence presented by Apollo Shoes. The audit team has
developed an audit report in response to the audit and has also provided a description of the
evidence, a description of the account sampling and testing procedures used, and has also given a
brief description of the value of an audit report. This report is only to reflect Team D's opinion
regarding Apollo's internal controls, financial statements, and management's assessment.
Management Responsibilities
We have audited the financial statements of Apollo Shoes Inc., including the balance sheet, income
statement, and statement of cash flows. The company's management is responsible for ... Show more
content on Helpwriting.net ...
However, we are confirming the efficiency and effectiveness of the internal control, based on COSO
framework. It is important to mention that Apollo Shoes has a litigation suit in the preliminary stage
for $12,000,000, which intend to defend them self. It is reasonable that the loss could reach
$10,000,000 after legal fees (Louwers, 2007). No adjustments have been made to the financial
statements. Since Apollo has lost his major customer, this has raised a substantial doubt about the
ability that Apollo Shoes Inc. can continue as a going concern. The financial statements do not
include any adjustment that contemplates this uncertainty.
Description of Evidence The evidence used for the audit included several items presented by Apollo
Shoes. The team was presented with the SEC 10–K filing from 2006, as well as the minutes from
the audit committee meeting. The team also reviewed the company Letter to the Shareholders. The
SEC filing provided us with historical financial statements and a wealth of other information about
the company, including quarterly unaudited operation results. The team also reviewed the company
accounting and control procedures manual to evaluate the controls over the accounting functions of
the
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