WorldCom: internal audit lessons to be learnt On June 9 2003, the U.S. Bankruptcy Court of New York issued a report on the WorldCom accounting fraud that expands on the court's earlier findings of mismanagement, lack of corporate governance, and concern regarding the integrity of the company's accounting and financial reporting functions. Supervised by former U.S. Attorney General Richard Thornburgh, the study was commissioned by the court to investigate allegations including fraud, mismanagement
Risk Assessment Process Every firm faces risks, both internal and external, that must be dealt with. In order to assess risk, the auditor must understand what roll the area that’s being audited plays in the business. The purpose of risk assessment is to identify and evaluate the risks relevant to that area of the business and to determine how to manage these risks. The auditor then identifies the internal controls that regulate those risks – these are the internal controls the auditor should focus
Introduction Internal Audit is an independent, objective, assurance, and consulting activity designed to add value and improve operations. It helps accomplish objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of governance, risk management, and control processes. Internal Audit is organized to examine and evaluate current and proposed processes and controls. The objectives of Internal Audit are to: 1. Promote effective and efficient controls through
Chapter 5: Internal Control over Financial Reporting 1. Internal control is a process designed to guarantee the achievement of the objectives of reliable financial reporting, compliance with laws and regulations and ineffective and inefficient operations. FALSE 2. Auditing standards require that the auditor exercise professional judgment and maintain professional skepticism throughout the planning and performance of the audit. TRUE 3. If internal controls are not enforced they are useless
Sarbanes-Oxley and Internal Audits Assuming that Wine Depot is a publicly traded company held under the provisions of Sarbanes- Oxley Act as directed by section 404 of the act adopting the rules is subject to reporting requirements of SEC to include in their annual reports a report of management on the company's internal control over their financial reporting. Management responsibilities are adopting accounting policies and establishing and maintaining internal controls system that will process, record and
SArbanes Oxley Act has improved the quality of public company audit Neil Vita Sarbanes-Oxley Act has improved the quality of public company audit. SOX prohibited services to try and make auditing more independent. SOX added the role of the audit committee. SOX created the PCAOB. SOX instituted Sec 404 which gave management the responsibility of having to evaluate internal controls. SOX prohibited services to try and make auditing more independent. Prior to the Sarbanes-Oxley Act one, of the biggest
A Framework for Continuous Auditing Student: Jhona Blake Instructor: Rajindralal Mohan Abstract Continuous Auditing is a part of a company’s internal control and is not implemented to replace regular auditing. Continuous auditing primarily focuses on frequency of risk and the effectiveness of internal control. Thus, continuing auditing is used to improve auditing organization, efficiency, and add value to a company performance. Continuous auditing is an essential tool in reducing waste, inefficiencies
The internal audits in an organization provide numbers of services that are significantly important to company management and help organization to succeed. These services include testing internal control, assessing operational risk, detecting the misstatement, and monitoring compliance with government regulation and policy. Institute of Internal Auditors (IIA) gives the latest definition of internal audit is that: Internal audit is an independent assurance and consulting activity management, aims
Industry Overview Company Overview (ONGC) 2 4 6 6 20 23 24 26 28 38 39 40 41 3. INTERNAL CONTROL & INTERNAL AUDIT Internal Control Internal Audit Standards on Internal Audit 4. PROJECT PROFILE Objectives Research Methodology 5. LEARNINGS & OBSERVATIONS Learnings Audit Scope & Coverage Organisation Structure of IA Department Audit planning & process Audit approach & methodology Life cycle of an audit Performance evaluation Quality systems 42 43 44 46 47 50 52 54 58 59 61 62
Information Technology Audit Team Creation The creation of a team to perform the effective auditing of an Information Technology (IT) organization is a daunting task. Some of the key elements that should be considered while creating an IT audit team are highlighted in this critical thinking report, such as what should be the primary focus of the team, what are the key positions, the skill-sets needed for each member of the team, outside assistance or co-sourcing should be considered or not, and