Auditing as a profession as evolved drastically over decades and as time has passed auditing

Control of the internal audit unit and of individual assignments is needed to ensure that internal audit objectives are achieved and work is performed effectively. The most important elements of control are the direction and supervision of the internal audit staff and review of their work. This will

The act endorses companies to change the practice and regulations of accounting and auditing. It required them to maintain good financial recorded which were different than the past. The management team is held personally liable for the reliability and accuracy of the financial statements. All publically listed companies must establish a system of internal controls which must be evaluated by management at least quarterly and external auditors are required to conduct independent assessments of company’s in –house internal controls as well as report any fault or fraudulent acts they observe.

Arens, A. A., Elder, R. J., & Beasley, M. S. (2006). Auditing and Assurance Services (11th Ed.). Prentice Hall, Upper Saddle River, NJ: Pearson Prestice

The importance of audit committees increased through the years and especially from pre-Sarbanes – Oxley to post-Sarbanes – Oxley. Although, what are the responsibilities of the audit committee members? How does a Chief Audit Executive (CAE) more effectively serve their audit committee members? How do auditors communicate with audit committees? What are the requirements for audit committees? Most of these questions are inherited from what the audit committee’s best practices are.

Arens, A. A., Elder, R. J., & Beasley, M. S. (2012). Auditing and assurance services:

control is not effective, the problem can be catastrophic as it was for Arthur Anderson in

Sometimes, auditors always have client pull documents, prepare various schedules to which audit procedures will be applied, and perform other important audit-related tasks. In completing these tasks, client personnel can often determine the auditor’s intent and the scope limit of a given audit test. Likewise, clients have access to the professional auditing sources and professional publications that discuss the general guidelines that auditors use in making important strategic decisions during the course of an audit, including the

Rittenburg, Larry. Johnstone, Karla. Gramling, Audrey. (2012) Auditing: A Business Risk Approach 8e. Mason: South-Western, Cengage Learning.

Auditing standards in UK and Ireland, including Ethical Standards, International Standards on Auditing and International Standard on Quality Control, are enacted for audits of financial statements. The content of these standards includes objectives for the auditor, requirements and application and other explanatory material.

Arens, A. A., Elder, R.J., & Beasley, M.S. (2012). Auditing and assurance services: An integrated approach (14th Ed.). New York, New York: Pearson.

The UK Corporate Governance Code requires that all listed companies set up an audit committee of at least three, or in the case of smaller companies two, independent non-executive directors (icaew, 2017). The audit committee should be made up of trustees with a combination of skills and should include at least one member who has a strong financial knowledge (Riner, 2017). A good audit committee should be designated a financial expert and staffed with a select group of people knowledgeable about financial matters. Among the many important roles, the audit committee plays within an organization, is to provide internal audit oversight. The audit committee acts as a direct link between the board and the independent auditors, management and internal auditors who are responsible for these processes and controls. Effective audit committees enhance audit quality and build confidence in the financial reporting (Riner, 2017). The audit committee plays a critical role in providing oversight and serving a financial check on a company’s financial reporting system. The committee provides independent review and oversight through the company’s financial reporting processes, also be responsible for the internal controls and independent auditors (Financial Times, 2017). The audit committee is the central point of the effective corporate governance and it should be in a best position to offer effective oversight of the performance,

Audits are meant to contribute to a company’s financials by bringing assurance that they are in accordance with GAAP. Auditors provide high quality audit opinions on a client and one

Internal auditors cannot effectively provide an analysis on the company’s internal dealings as they are part of the company. External auditors, however, can observe these processes from the outside and then determine where the funds of the company and whether the dealings adhere to the regulations. Using external auditors in a company prevents conflict of interest from happening. Conflict of interest is a situation where an individual or organization has multiple interests and of those multiple interests, one could possible corrupt the motivation for an act on the other when the auditor has any kind of beneficial interest in their client’s performance. In other circumstances, there is also the threat of familiarity where auditors become

According to the Institute of Internal Auditors (IIA), (2011), the internal auditing is a team of consultants, a department and a division or other practitioner which independent, have objective assurance and conduct a consulting activity which is designed to add value and improve the organization operations. The internal auditor can help an organization in achieving its objectives by bringing a discipline and systematic approach in order to improve and evaluate the effectiveness of risk management, control and governance process.

The role of internal audit is to provide independent declaration that an organization’s threatadministration, governance and internal control processes are functioning effectively. Internal auditors deal with concerns that are essentially important to the existence and success of any organization. Unlike external auditors, they aspect beyond financial possibilities and statements to reflect wider problems such as the organization’s reputation, development, its power on the location and the approach it treats its organizations.In summary, internal accountantssupport organizations to thrive.