Report of my presentation
I believe my audiences has already understood some about audit through our presentation. This report will show the power points of auditing in my presentation, as well as show the reasons of why I choose an internal auditor as my career. The next section is going to explain what internal audit and internal auditor is.
Internal auditors ordinarily work in companies and organisations to monitor and estimate how well risks are being managed, the business is being governed and internal processes are working. The range and nature of audits can vary importantly but the main priority of the work is to make sure any issues that affect the survival and prosperity of the business are dealt with. Their work helps senior management
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There are some differences between an internal auditor and an external auditor. First of all, the work of an internal auditor differs to that of external auditors as they look at more than financial and accounting risks. They also consider factors such as reputation, growth, environmental impact, treatment of employees and ethics. Conversely, the objective of an external auditor is adding credibility to financial reports and giving opinions on the reports. Next difference is when they achieving their works, an internal auditor would report the result of their works to the board and senior management such as managers but an external auditor would submit their reports to the shareholders. In my opinion, an internal auditor like a person help you to avoid making errors when you doing something. Whereas an external auditor like a person check your mistakes, in addition help you correct the mistakes when you have finished your works. The forth section will show the reasons of choosing an internal auditor as my career.
There are some reasons of becoming an internal auditor. Firstly, the most important reason is as an internal auditor could have more opportunities to learn a lot of things of company operation and company management, as well as could know the reasons of why the managers make the decision, it is very helpful to start my own business. The second reason is as an internal auditor have more
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They form the basis upon which modern accounting is based. This essay will explain how each of these concepts shape the information provided to the key business stakeholders. Then, the definition of the key business stakeholders will be addressed.
(BBC,2014) A stakeholder is anybody with an enthusiasm for a business. Stakeholders are individuals , teams or organisations that are affected by the activeness of the business. There are two main types of stakeholders. Internal stakeholders are teams within a business like owners and workers. External stakeholders are teams outside a business such as the community. Conversely, in general, the stakeholders in a company include investors , managers and customers.
Historical cost accounting is a traditional evaluation method as it reflects only on the yesteryear toll of the asset. The historical cost system provides managers with a reliable, objective information that solely identifies changes in the organisations functioning . Upon this foot changes in carrying into action can then be compared in reporting and measure economic information. For instance, Jeff’s Construction, LLC bought the equipment in 2001 for ￡10,000. Now the equipment is only worth ￡2,000. Jeff would still report the equipment at its purchase price of ￡10,000, less depreciation, notwithstanding
The purpose of the internal audit is to protect Costco 's assets through evaluating the acceptability and efficiency of internal controls; recognizing areas of possible risk, revenue improvement and/or cost reductions; and making sure transactions are authorized, completed, and logged as proposed. The internal auditors are accountable for guiding audits of all Costco’s local and global activities, its affiliates, and other entities Costco conducts business with as deemed necessary by management.
Stakeholder is anyone with an interest in a business; stakeholders are individual, groups or businesses. They are affected by the activity of the business. There are two types on stakeholders who are internal and external. Internal stakeholder involves employees, managers/directors and shareholders/owners. External stakeholder involves suppliers, customers, government, trade unions, pressure groups and local and national communities.
Objectivity also needs to be evaluated to make sure the internal audit is reliable. The internal audit needs to be free of conflicting responsibilities as well
The internal stakeholder is the one who are working in the organization like owner, sponsor, functional manager, subject matter experts, financing source, stockholder, employees. The external stakeholders are the one which are linked with the organization directly or indirectly like suppliers, partners, government agencies, client, taxpayers, union, etc.
One of the major factors that effect any decision are the stakeholders. Stakeholders are defined as anyone who has interest or concern regarding the any aspect of the organization. Stakeholder can very between internal and external parties. According to definition, stakeholders can be just about anyone, but it depends solely on the type of organization
Both roles should ideally be independent of operations, but corporate compliance in reality owns the compliance operation policies and procedures. Internal audits have to be completely Independent. Internal audits also bring attention to the need for monitoring as a result of their auditing function. Corporate compliance ensures that monitoring and auditing occur. As far as follow-up goes, corporate compliance is responsible for such things, while internal audit is just responsible for reporting whether management responded appropriate to obtained information. Both roles are involved in compliance risk. Corporate compliance creates and implements a compliance plan to ensure that compliance risks are addressed. Internal Audit on the other hand, addresses compliance risks as part of risk based audits.
The simple explanation of historical cost is assets and liabilities are required to be measured and reported at their acquisition price. While on the other hand, current cost accounting requires that assets and liabilities be measured and reported at their current or market value. It seems like this is a never ending story so academicians as well as practitioners have long debated the issue of historical cost accounting versus current value accounting.
Auditing as a profession as evolved drastically over decades and as time has passed auditing activities has expanded from performing specific assurance activities for management, to assisting and advising management with their specific business activities. The Institute of Internal Auditors define internal auditing as ‘”…an independent, objective assurance and consulting activity designed to add value and improve an organisation's operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.’ (Institute of Internal Auditors, 2013) Through this definition it can be explained why auditors can be seen as the ‘eyes and ears’ of management. Concentrating specifically on the principles of Governance, the usage of Internal Auditing Standards, the Current Role of Internal Auditing in SA, reviewing current crisis, the importance of Internal Auditing to management is evident.
The. Loughran, Maire. Auditing For Dummies -. Hoboken: Wiley Publishing, 2010. Print.
Stakeholders and stockholders are a group of individuals that can affect the company and also are affected by the company. In order to be a successful company needs to maintain their investor’s confidence. Stockholders are also able to develop value for the customer because they invest on ideas that will produce success for the company. Stakeholders are all the individuals that have an interest in the company such as employees, customers, and the surrounding community.
Main view of this report is to explain how the accounting plays a major role in banking, finance and other sectors of business. To decide this, the following questions are explained as follows:
Audit Risk is the risk that an auditor has stated an incorrect audit opinion on the financial statements. It may cause the auditors fail to alter the opinion when the financial statements contain material misstatement. The auditor should perform the audit to lower the audit risk to a sufficiently low level. In the auditor’s professional judgement, the auditor should appropriately state a correct opinion on the financial statement
Auditing has been the backbone of the complicated business world and has always changed with the times. As the business world grew strong, auditors’ roles grew more important. The auditors’ job became more difficult as the accounting principles changed. It also became easier with the use of internal controls, which introduced the need for testing, not a complete audit. Scandals and stock market crashes made auditors aware of deficiencies in auditing, and the auditing community was always quick to fix those deficiencies. Computers played an important role of changing the way audits were performed and also brought along some difficulties.
Stakeholders refer to individuals or groups of people that have an interest in a business. Management argues that as long as there is wealth for shareholders, then anything is done in a responsible manner and things should be done to promote the interest of other stakeholders.
Audit is a process to evaluate and review the accounts and financial statement objectively. We can divide it into internal auditors and external auditors. Internal auditors have a inner knowledge of business process. Auditor has access to the much confidential information and all levels of management. But they may lose their judgement and they are not acceptable by the shareholder. “The overall objective of the external auditors is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to report on the financial statements in acco...