Internal Auditing Case Study

1152 Words3 Pages

Background information In his book “The internal auditing handbook “, Pickett (2013) defines an auditor as an official whose job is to vigilantly check and ensure that business records meet the expected records. Typically, an auditor can either be affiliated with a company, as an independent auditor, or be an internal (captive) auditor; whereas some are elected as public officers to ensure public offices are maintaining honest and accurate financial records and statements. According to Pickett (2013), the typical role of an auditor is to investigate an organization, its financial records and statement and form an opinion on the correctness and accuracy of the records; and whether the right procedures were followed (Chambers & Rand, 2011).
Types of auditors Diverse literature have revealed that there are three major types of auditors namely; internal auditors, government auditors and independent auditors.
Internal Auditors According to Chambers and Rand (2011), the phrase “internal auditors” refer to the auditors who have been employed by an organization to carry out audit work. The main role of internal auditors is to review employee performance, financial and accounting statement and compliance with the set standards and regulations. Pickett (2013) writes that internal auditors play a …show more content…

In the case of Royal court affairs some of the major types of fraud include cash theft, cheque tampering, improper payroll transactions and misuse of the organizations credit card facilities. The internal audit department is therefore an integral part of any particular organization risk mitigation approach, and seeks to strengthen fraud prevention and anti corruption strategies. Internal audit can be implemented both in small and large organization; irrespective of the number of staff and their level of

Massachusetts General Hospital
1281 Words | 3 Pages
The Institute of Internal Auditors. "Internal Auditing's Role In Section 302 and 404 of the U.S Sarbanes-Oxley Act of 2002." The Institute of Internal Auditors (2004): 1-13.
Read More
Dodgy Accounting Case Study
1565 Words | 4 Pages
The audit committee should follow certain criterion to choose internal auditors and external auditors, and also supervise their activities and interaction thus ensuring the function of audit both internal and external.
Read More
Internal Audit Case Study
1665 Words | 4 Pages
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.
Read More
Internal Auditing
1031 Words | 3 Pages
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.
Read More
Auditor’s Role: The Importance to Overcome Ethical Dilemmas
1032 Words | 3 Pages
An auditor needs to follow, abide and comply with the standards, rules and regulations of their profession, as these will help the auditor to recognize when independence and objectivity are compromised. Works Cited Gray, Iain and Stuart Manson. The Audit Process: Principles, Practice and Cases. London: Thomson Learning, 2008. Print.
Read More
Accounting Scandals: The ENRON Scandal in 2001
1233 Words | 3 Pages
Accounting ethics has been difficult to control as accountants and auditors must keep in mind the interest of the public while that they remain employed by the company they are auditing. The accountants should take into account how to best apply accounting standards when company faces issues related financial loss. The role of accountant is crucial to society. They serve as financial reporters to owe their primary constraint to public interest. The information provided is critical in aiding managers, investors and others in making crucial economic decisions. An accountant is responsible for any fraudulent financial reporting. Some examples of fraudulent reporting are:
Read More
Corporate Governance Case Study
1586 Words | 4 Pages
As good risk management can not only help to keep company’s established value, they can also assist in capitalizing and identifying to create value. According to principle 7 recommend to have an internal audit faction, the role of internal auditor is to help the board monitor and manage risk directly.(ASX 2014).
Read More
Case Study Dato Meng
775 Words | 2 Pages
Kent has a misconception that auditors have no specific duties regarding fraud. Furthermore, Kent also mentions that auditor provides no assurances about fraud because that is management’s job. In fact, auditors do not have duty to detect fraud. However, it is an auditor responsibility to detect material misstatements in the financial statement. Auditors are required to identify and assess the risk of material misstatement due to fraud and design procedures to detect such misstatement.
Read More
The Impact Of Accounting Fraud
1617 Words | 4 Pages
ABSTRACT: The quantity of accounting fraud cases keeps on rising. Fraud is a consistent thing that will reliably be around, and in a bigger number of routes than just a single. An extensive apportionment of organizations out there fighting fraud, either from within the organization, or from outside the organization. Knowing how to manage this is essential for an organization to be productive over an extended period of time. The investigation regarding the matter of accounting fraud will utilize sources from the web and the DeVry School Library.
Read More
Embezzlement In Payroll Essay
925 Words | 2 Pages
There any many ways to protect the company against fraud and embezzlement. Having a good internal control system is vital in minimizing the chance for fraud to be committed. Some examples of features of a strong internal control system are segregation of duties, monitoring cash activity, requiring proper authorization of timesheets and expenses, ensuring that there is proper documentation of transactions and accounting reports, and protecting checks against fraudulent use by not allowing the writing of checks payable to cash, limiting access to checks, and keeping them in a locked area (Laufer,
Read More
The Purpose of Accounting
632 Words | 2 Pages
...e financial reports and statements are correct. This auditing will be conducted by auditing department of the organization, even may be done by an independent auditor who is not part of the organization, and sometimes public officials are elected. In case of unmatched consequences the organization need to give explanation on the misrepresentation of wrong statements. Auditors purpose is then to ensure that the misrepresentations are corrected, then maintain accurate, reliable financial documents and statements.
Read More
Understanding Auditors' Duties in New Zealand's Financial Market
2202 Words | 5 Pages
The fundamental duty of an external financial auditor is to form and express an opinion on whether the reporting entity’s financial statements are prepared in accordance with the relevant financial reporting framework. In discharging this duty, the auditor must exercise “reasonable skill, care and caution” (Lopes, J. in Kingston Cotton Mill Co 1896) as reflected in current legal and professional requirements.
Read More
The History of Auditing
3399 Words | 7 Pages
The evolution of auditing is a complicated history that has always been changing through historical events. Auditing always changed to meet the needs of the business environment of that day. Auditing has been around since the beginning of human civilization, focusing mainly, at first, on finding efraud. As the United States grew, the business world grew, and auditing began to play more important roles. In the late 1800’s and early 1900’s, people began to invest money into large corporations. The Stock Market crash of 1929 and various scandals made auditors realize that their roles in society were very important. Scandals and stock market crashes made auditors aware of deficiencies in auditing, and the auditing community was always quick to fix those deficiencies. The auditors’ job became more difficult as the accounting principles changed, and became easier with the use of internal controls. These controls introduced the need for testing; not an in-depth detailed audit. Auditing jobs would have to change to meet the changing business world. The invention of computers impacted the auditors’ world by making their job at times easier and at times making their job more difficult. Finally, the auditors’ job of certifying and testing companies’ financial statements is the backbone of the business world.
Read More
How to Prevent Fraud
982 Words | 2 Pages
Overall, the company is having ineffective controls regarding different departments and in the whole organization. An effective internal audit department should be established within the organization which should test the effectiveness of these controls on regular basis and make it sure that all controls are working effectively and efficiently with the different departments of the organization. Also the Internal auditor should implement the most effective processes and measures to prevent and detect the fraud, corruption and non compliance with the laws and regulations in the organization. Establishment of internal audit committee would be helpful in this regard which comprises of executive and non executive directors.
Read More
Importance of External Auditors
1117 Words | 3 Pages
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...
Read More

Open Document

Wait a second!

Internal Auditing Case Study

Massachusetts General Hospital

Dodgy Accounting Case Study

Internal Audit Case Study