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Notes about internal auditing
Brief history of internal auditing development
Review of literature on internal audit
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Internal Audit Team at Ventra Ionia
Introduction
Everyone scrambles and hides; it is audit time. Tension seems to be high during an internal audit as employees tend to feel as if they are being judged or set-up for failure. Automotive companies require suppliers to use internal auditors to verify various internal systems such as quality (Smith, Munro & Bowen, 2016). An internal auditor is trained to monitor, analyze and assess various processes within an organization (DeRose, 2015). An effective internal audit team is one of the best tools a quality department has; If Ventra Ionia can develop an effective internal audit team the company and employees will benefit.
Ventra Ionia is an original equipment manufacturer for the automotive industry.
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This paper will define an internal auditor and share the requirements of an internal team as determined by ISO/TS 16949. An overview of the Ventra Ionia will be conducted as well as an investigation as to current staff availability and qualifications to join an internal audit team. Information in regards to team structure including selection, training plans and problems will be discussed. Two strategies for forming, orienting, managing, and assessing an internal audit team will be described. One strategy will be selected and implementation plan will be discussed listing steps and timelines to launch the program. An effective internal audit team is one of the best tools a quality department has; If Ventra Ionia can develop an effective internal audit team the company and employees will benefit.
Literature Review
The aim of this research is to discuss internal auditing and the selection of an internal audit team. This section will reveal the benefits of internal audits. It will also explore the requirements Ventra Ionia is required to meet in regards to internal auditor selection. Team structure will also be discussed. Different problems the internal audit team might face will be revealed.
Dan Nelson believes internal audits are done for multiple reasons; he discovered
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“A poorly deployed internal auditing system can lead to increased, non-value added costs, many hours of wasted resources, and a breakdown of the quality management system” (Strouse, 2009, p. 1). One sign of an ineffective internal audit team is the lack of management buy-in; if management does not see value in audits employees will not believe in or support them. Another sign of a weak internal audit team is delayed and postponed audits, if an auditor or the participant reschedules audits often it shows there is not a priority placed on the audits and they are viewed as necessary evils (Strouse,
Cueto may have a potential claim that the OER’s interpretation of the enabling act and ensuing actions exceeded the authority delegated to the OER by Congress. The OER’s notice of liability refers to Section (3) of the statute, and requires the OER to provide to Cueto “notice of the factual basis for the finding.” However, Cueto may argue that the OER failed to comply with this provision of their own enabling statute. The OER’s notice simply related to Cueto that their liability was assumed due to Cueto’s ownership of the pipeline. If Cueto was to challenge the notice per Sections (3) and (4) of the statute, it is highly unlikely the OER’s only evidence at the hearing would be Cueto’s ownership of the pipeline. It is reasonable to interpret that the “factual basis” described in the statute for Cueto’s liability that would be required for the OER to prevail at the hearing is the same or similar factual basis the OER must provide to a responsible party upon notice. If simply noting Cueto’s ownership of the
Mr. P has a history of DUI’s in his past, which thereby warranted his current arrest. He was pleasant and cooperative during his arrest and was taken into custody without incident. He then was released the next day and was given a court date. Mr. P obtained legal defense and faced the judge with fear of being incarcerated, but was confident that he had a defensible case. The judge thought otherwise, and imposed a harsh sentence of 90-day substance abuse treatment at a correctional facility. Yet, Mr. P was defensive when confronted about his alcohol use and denies that that his drinking and driving is a concern. Furthermore, he rejects this behavior as being harmful to his work environment, other than if he were incarcerated he may lose employment.
Individual Article Review Lily Cobian LAW/421 March 31, 2014 Ramon E. Ortiz-Velez Individual Article Review Introduction My article review is based on Sarbanes-Oxley and audit failure, a critical examination why the Sarbanes-Oxley Act of 2002 was established and why it is not a guarantee to prevent failure of audits. Sarbanes-Oxley Act talks about scandals of Enron which occurred in 2001 and even more appalling the company’s auditor, Arthur Anderson, found guilty of shredding company documents after finding out Enron Company was going to be audited. The exorbitant amounts of money auditors get paid to hide audit discrepancies was also beyond belief. The article went on to explain many companies hire relatives or friends to do their audits, resulting in fraud, money embezzlement, corruption and even the demise of companies. Resulting in the public losing faith in the accounting profession, the Sarbanes-Oxley Act passed in 2002 by congress was designed to restrict what company owners and auditors can and cannot do. From what I gathered in the article, ever since the implementation of the Sarbanes- Oxley Act there has been somewhat of an improvement but questions are still being asked as to why there are still issues that are not being targeted in hopes of preventing more audit failures. The article also talked about four common causes of audit failure: unintentional auditor mistakes, fraud, fatigue and auditor client relationships. The American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct clearly states an independent auditor because it produces a credible audit, however, when there is conflict of interest, the relation of a former employer, or a relative or even the fear of getting fire...
ECVS is a retail pharmacy that recognizes that compounding is an essential part of our pharmacy. We ensure that all our customers understand that compounding vitamins are made from individual ingredients that are mixed together in the exact strength and dosage that is required by the patient. This method allows the compounding pharmacist to work with the patient and the physician to customize a supplement to meet the customer’s specific needs” (Julie English, 2013).
Krishan, G.V., & Wei, Y. (2012). Do small firms benefit from auditor attestation of internal control effectiveness? Auditing, 31(4), 115-137. doi:10.2308/ajpt-50238
Due to the lack of qualified and engaged auditors, Ventra Ionia needs to evaluate their current audit program. There are many structures the audit team can take. Does Ventra want to hire a few full-time employees whose only responsibility would be to audit the various processes within the factory? Does Ventra want to conduct an internal auditor training to develop current employees? Does Ventra want to create a partnership with other factories in the area or sister plants to create a co-sourcing or consortium arrangement? Does Ventra want to hire an outside company to conduct all internal audits and outsource the process? There are many options Ventra could choose. The following two options are suggestions Ventra could use to develop their internal audit program.
A non-guilty verdict in the murder trial of Bradley Barton accused of killing Cree mother of three Cindy Gladue who bled to death from an eleven centimetre internal laceration argues that the wound was the result of rough sex. Gladue known in Edmonton as a sex worker spent two night with Barton in an Edmonton hotel room in June 2011. This essay will argue the appeal that was warranted through looking firstly at feminist analyses of sexual assault and legal consent, secondly, the contexts of intersectional power relations/ interlocking oppressions such as Gladue being a women from a Cree nationality who works as a sex worker, thirdly the problematic notion of Gladue being the bearer
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
which swept the nation. The Fear of communism (also known as the Red Scare), in 1919 there were labour grievances along with bombings which was seen as a result of Communist Russia influences and a brief revolt in Hungary which built to the fear that America may be on a verge of a revolution. In 1919 to 1920 America saw the prosecutions of thousands of suspected radicals and those proven foreigner were deported. This in turn created a belief and connection that chaos was a result of foreigners and radicalisms. Such connections are best represented in the Sacco and Vanzetti case. Two Italian men convicted guilty (July 1921) for the robbery and murder in Massachusetts. Their execution took place in August 1927. The fear of communism spread to
Firstly, there is no external quality or process auditors. Frequently, the internal auditors faced great pressure to declare quality defects. For example the QC should shut down the affected product lines when they found defects, but in real cases, they are hardly dared to do so.
The oversight responsibilities of the board, the CAE lacking of expertise or broad understanding of financial controls and responsibilities, and the understaffed internal audit functions lacking of independence and direct access to the board of directors contributed to the absence of internal controls. To begin with, the board should be retrained to achieve financial literacy to review financial reporting. Other than attending formal meetings, the board of directors should be more involved with the management. For the Audit Committee, the two members who were recruited as acquaintances to Brennahan need be replaced with experts who are more sufficiently knowledgeable about accounting rules beyond merely “financially literate”. Furthermore, the internal audit functions need to expand with different expertise commensurate with the expanded activities of the organization, testing financial reporting rather than internal controls from an operational perspective. The CAE should be more independent and proactive to execute audit plans, instead of following orders from the CFO, and initiate a direct and efficient communication between internal audit and audit
Abstract: Using Ion Exchange Chromatography, cellulase was purified. After purification, it was analyzed using a DNS test. The purified protein did not respond to the DNS the way it was expected to.
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.
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.
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...