Internal Auditor Recommendation Brief

In: Business and Management

Submitted By skool415
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Internal Auditor Recommendation Brief The client has mentioned that it has an out-of-control system and is in need of direction, organization, and establishing appropriate controls. Because of the increased attention surrounding increased operating expenses, speculative transactions and corporate fraudulent activities by legislators, shareholders and the media has caused United States companies to focus on implementing and maintaining a comprehensive and effective system of internal controls. These corporations have enlisted the services of internal auditors or created an internal audit department aimed at reducing potential risks that may yield unfavorable results or exposure for the company.
The Institute of Internal Auditors (IIA) states the objective of an internal audit assists organizations to accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve effectiveness of risk management, control and governance processes (Louwes, Ramsay, Sinason, & Strawser, 2007). Benefits of employing the services of an internal auditor provide a certified individual who is familiar with the intricate details of the company and can integrate seamlessly into its established processes and controls. Also an internal auditor offers an independent and objective review of the company aimed at recognizing and developing controls, and while improving the efficiencies of various processes and controls with the company’s best interest in mind. In some instances recommendations made by an internal auditor often result in increased revenues or cost savings for the company. An internal auditor ensures and offers comfort to executives, shareholders and users of the financial statements of the company and their controls are operating efficiently. Last, having an internal auditor or department reduces the frequency and the expenditure required…...

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