Internship Report in Auditing

Auditors have the responsibilities as well as management to report internal controls. The auditors must examine closely management’s claim of effectiveness and also physically test the controls. After the examination, the auditors should express their opinion and any recommendations to fix any internal control weaknesses.

Due to increasing economic and financial growth, many types of audit have been incorporated throughout the development process of internal activities. Audits can be performed manually or they can incorporate technology. According to Hunton and

2. A financial statement audit involves obtaining and evaluating evidence about an entity 's financial statements for the purpose of expressing an opinion on whether the statements are presented fairly in conformity with established criteria--usually GAAP. Thus, the nature of the auditor 's

When auditing a public company, the auditor must form an opinion on the effectiveness of internal control

The internal auditing has vastly changed since the Archer Daniels Midland Company price fixing scandal, the Enron deceit or implementation of Sarbanes-Oxley Act of 2002. Both of these corporations had two things in common greed and faulty internal auditing accounting practices. In fact, since the time of both scandals Hollywood has made two movies, “Dick and Jane” played Jim Cary, who was executive that highlighted the debauchery of Enron not mention the second movie “The Informant” played

Section 404. Management assessment of internal control: This section needs every annual report of a in public listed company to contain internal control report stating management’s responsibility to establish and maintain an adequate system of internal control financial reporting similarly as an assessment of the effectiveness of internal control structure and procedures. Auditors audit the financial statements of the company must issue a consulting report regarding the effectiveness of the company internal

An audit is based when management prepares the financial statements, maintain internal control over financial reporting, and provide relevant information and access to the auditor.

Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, evaluating management’s assessment, testing and evaluating the design and operating effectiveness of internal control, and performing such other procedures as we considered necessary in the circumstances.

This chapter deals with introducing the nature of the study as the reason why the researcher chose this topic. This also contains the general problems that he wanted to find answers to, the importance and to whom it would benefit and the important terms to be defined.

Because the internal auditing was an effective way to monitor and at the same time it helped to raise the quality of work in the company. Therefore, the internal auditing helped Deloitte & Touche company to achieve their strategic objectives during bring a structured approach. And improve their internal control process as well as the effectiveness of risk management. When the internal auditing disclosure the mistake at the same time that helped the company to avoid the problem. It was necessary for the company to have a strong audit system which could reduce the material misstatement in financial reporting. For instance, if the internal auditor possesses the qualities of the success of the auditing which helped the company to achieve their goals this will lead to bringing more clients to their company. In the literature review, which associated with this found like internal auditing must determine the main goal and measure the effective which could help them to facilitate the achievement of their objective (Dittenhofer, 2001). This result was related to CLO 1 because it includes the audit objective, such as it is provided to assess the internal control and ensure that all the data is free from the error.

Among five interrelated factors composing internal control (Figure1: The COSO Cube), there is monitoring. This is mainly conducted by internal and external auditors to assess whether implemented internal control are functioning properly and effectively. In the course of this ongoing monitoring, if some deficiencies are to be discovered, then auditors report upstream to managers and the board. Compared with internal auditors, external auditors could bring about more

Internal auditing is an independent objective assurance and consulting acitivity designed to add value and improve an organizations operations.

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.