Essay on Corporation Internal Auditors

Essay on Corporation Internal Auditors

Length: 1180 words (3.4 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Internal auditors should work closely with the audit committee to establish the audit department's responsibilities, and the board and management should support those duties. However, internal audit processes can sometimes be ignored by the top management, who may chose to focus time and resources on areas they deem to be more pressing to bottom lines. It is the responsibility of the internal auditor to put proper control measures. (Metricstream, n.d)
Independence
Independence is the freedom from conditions that threaten the ability of the internal audit activity to carry out internal audit responsibilities in an unbiased manner. To achieve the degree of independence necessary to effectively carry out the responsibilities of the internal audit activity, the chief audit executive has direct and unrestricted access to senior management and the board. This can be achieved through a dual-reporting relationship. Threats to independence must be managed at the individual auditor, engagement, functional, and organizational levels. (Institute of internal auditors, 2009)
Outsourcing
Outsourcing internal auditors is an effective cost-saving strategy when used properly. It is more affordable and leverages the business with competencies and skill sets from different functions that existing IA may not have. For example, few in-house IA shops have the capabilities to employ advanced data analytics to derive strategic insight and do more sophisticated risk analysis and monitoring. Having advanced analytics capability requires access to the relevant technology and tools. It also requires technology-savvy professionals who can code and create the analytics and business professionals who can convert the analytics and turn them into usable insights. ...


... middle of paper ...


...gly realize they need “really deep industry capability; they need people to understand the business and not just finances.” (Jackson, 2013)
Technology
Auditors will need to be technology savvy as a great deal of audit work in the future will be supported and hosted on gadgets such as tablets, smartphones, and many more. They may not necessarily have a specialization in IT but they should be able to conduct audit procedures using technological tools to improve the efficiency and accuracy of their audit work (Jackson, 2013).
“By 2020, internal audit is going to be driven much more by data — in the risk assessment phase, in planning and scoping an internal audit, and in executing it,” Pett predicts. Specifically, he foresees visual analytics rising dramatically on the back end, plus more technology-enabled communications and more tablet-based reporting (Jackson, 2013).

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Financial Accounting Acc 537 Corporation Essay

- CUBIC Corporation to Restate Financial Statements (2014) Jennifer Poston Financial Accounting ACC 537 May 2015 Introduction Cubic Corporation announced that the Audit Committee of its Board of Directors, after consultation with Ernst & Young LLP, which is the company’s independent registered public accounting firm, determined that Cubic’s financial statements for the fiscal years ended September 30, 2013 and 2012 and each of the prior quarters of 2013 and 2012 can no longer be relied upon as being in compliance with generally accepted accounting principles (GAAP) (Graves, 2013)....   [tags: Auditing, Audit, Internal control]

Better Essays
708 words (2 pages)

Essay on Importance of External Auditors

- The aim of this essay is to study the function of external auditors in order to analyze why it is important to be independent. The primary mission of external auditors is to review and evaluate all the financial records of a company or corporation. They provide an objective opinion on the organization’s financial statement and effectiveness of the accounting polices in order to help management to make decisions. If the independence of the external auditors is impaired, the public will doubt the quality of professional auditing services, and the consequence would be very serious, just like the bankruptcy of Enron led to the disorganization of Arthur Andersen, once a giant accounting company i...   [tags: business]

Better Essays
1117 words (3.2 pages)

Internal And External Factors That Hinder Future Development Of Effective Corporate Governance

- 1.0 Introduction This report analyses the internal and external factors that hinder future development of effective corporate governance. The analysis will utilize relevant theories and models such as shareholder theory, stewardship theory, PESTEL and the German model to elaborate of the topic. I will begin by evaluating effective corporate governance and this will be followed by internal and external factors that influence its development. The findings will applied on Volkswagen company, which has experienced poor corporate governance in recent past....   [tags: Corporate governance, Corporation]

Better Essays
969 words (2.8 pages)

Essay on Exxon Mobil Corporation Audit Memo

- Introduction: We have been engaged to audit the financial statements for Exxon Mobil Corporation (ExxonMobil) and assess the effectiveness of their internal controls for the fiscal year ended December 31st, 2010 in compliance with the laws of the state of Texas and the standards set forth by the Public Company Accounting Oversight Board (PCAOB). In the previous memo sent, we outlined the client’s high inherent risk due to the account balances and transactions, foreign currency translations and the complexity of accounting for and auditing the client’s vast oil reserves and inventories....   [tags: Business Analysis ]

Better Essays
1564 words (4.5 pages)

Financial Analysis of Cyberguard Corporation Essays

- Table of Contents: Pages Section 1.............................................................................01 Section 2...........................................................................03 Bibliography......................................................................18 Form 10-k............................................................................19 Articles..............................................................................97 ... ... ... ......   [tags: Business Case Studies]

Better Essays
4322 words (12.3 pages)

Why Auditor 's Role As Well As Deficiencies Essay

- The collapses of large corporations to the global financial crisis in the early years of this decade are linked to the existence and operation of real corporate governance and the ethics in the work of the auditor. The role of an auditor is to obtain evidence and express an opinion on whether the financial report as a whole is free from material misstatement and therefore enhance confidence of intended users (Gay & Simnett 2013, p.12). The purpose of this essay is to discuss the auditor’s role as well as deficiencies that led to the demise of HIH Insurance on the 15th March 2001 in an estimated debt of $3.6 billion to $5.3 billion (Allan, G 2006, p....   [tags: Auditing, Audit, Corporation]

Better Essays
1100 words (3.1 pages)

Role Of The Public Accountant On The American Economy Essay

- Running Head: THE ROLE OF THE PUBLIC ACCOUNTANT IN THE 1 The Role of the Public Accountant in the American Economy Simone Bowens Saint Leo University THE ROLE OF THE PUBLIC ACCOUNTANT IN THE AMERICAN 2 Independent certified public accountants (CPAs)/auditors performing auditing and attestation engagements play a very important role in the economy. Auditing services can assist businesses with (1) transparency, (2) ensuring they are following proper policies and procedures, (3) ensure internal controls are functioning properly and (4) detect fraud and errors....   [tags: Financial audit, Auditing, Audit, Internal control]

Better Essays
2172 words (6.2 pages)

Rite Aid Corporation Case Study Essay

- Rite Aid Corporation which ranks as the third largest retail drugstore chain in the United states, control about 2,380 drugstores in 28 states across professionals pharmacy service, a full selection of health and personal care products, an assortment of general products in the nation and in the District of Columbia ( Rite Aid, 2007 ). Rite Aid has a great management team to help them with their success their team includes Chairman, President and Chief Executive Officer, Special Advisor, Corporate Strategy ,Chief Operating Officer ,Chief Administrative Officer ,Executive Vice President – Pharmacy, Executive Vice President, Store Operations ,Executive Vice President and General Counsel(...   [tags: Business Analysis]

Free Essays
1096 words (3.1 pages)

Auditing and Risk Management Essay

- Introduction Rosenberg indicates that transnational union of accounting specifications is not a new concept. The theory of convergence first started in the late 1950s as a result of the post WWII monetary integration and assimilated increases in cross-border wealth flows. At the onset, the focus was primarily centered on coordination that reduces among the accounting standards employed in major capital markets globally. FASB and IASB are two bodies that have been working in unison since 2002 to enhance and integrate U.S generally allow accounting principles (GAAP) as well as IFRS....   [tags: RBIA, efficacy, internal control, accounting, FASB]

Better Essays
1976 words (5.6 pages)

Essay on Major Parties Involved Within Corporate Governance

- 2.44 a. Major parties involved in corporate governance: • Stockholders • Board of Directors • Management • Audit Committees of the Board of Directors • Regulators and Standards Setters SEC, AICPA, FASB, PCAOB, IAASB b. Stockholders – in charge of the election of board members, approve major initiatives, and oversight on annual reports on management compensation from the BOD. Board of Directors – Represent the stockholders; ensure organization is run in accordance with the charter and proper accountability....   [tags: Auditing, Audit, Internal control, Internal audit]

Better Essays
1022 words (2.9 pages)