The And Internal Audit Of Public Sector Essay

Romney, M., & Steinbart, P. (2012). Accounting information systems. (12th ed., p. 143). Upper Saddle River, NJ: Prentice Hall.

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

Accounting Information Systems The Crossroads of Accounting and IT by Donna Kay, Ali Ovlia Instructor’s Solutions Manual

Bear in mind that upper management is ultimately accountable for any missing data or documentation. External auditors often expect requested information to be provided within one to two days, so information management systems must be efficient and organized. Software systems are proven ways to integrate efforts, increase compliance tracking and reduce errors and redundancies. Many software programs provide customized reports that specifically address different compliance requirements. These reports act as helpful performance controls that can be integrated into internal audits. Software systems also expand reporting capabilities, checks and balances and process and workflow

The engagement in this type of activities will provide the IAD with the responsibilities to fulfill certain degree of assurance from an independent and objective position. Although, the consulting activity could be the main focus for the IAD in this organization, the assurance portion could be a source of reliability and confidence for the management team, the board, and the employees in general regarding the work performed by the different departments. Another, recommendation will be to include in the charter the complete, unrestricted, and free access to any records and physical properties by the internal auditor while working in an engagement. This freedom will facilitate immensely the work performed by the internal auditors allowing them to have all the information required to accomplish their assurance and consulting objectives. Moreover, the IAD charter should include system to monitor the disposition of results communicated to management and a system to resolve risk conflicts between the chief audit executive and the senior management. The addition of these two crucial parts of the internal audit activity in the charter will facilitate the achievement of quick results and a more effective and efficient way to resolve significant issues that may arise in the

The Audit Process Proposal begins with an introduction to IT audit controls, operations and asset management, policy and procedures, and the necessity and purpose of each of these areas. Detailing the means through which the objectives of an audit focus on the assessment and evaluation of technological features in any given enterprise. Included in this section is the audit process

The company should hire it’s own internal auditor’s to ensure that the staff understand the company’s accounting procedures. This also helps the external auditor as it give the external auditor another viewpoint when assessing fraud risks. The internal auditors are apart of those charged with governance and that helps take the pressure off of the external auditor if a fraud should be discovered.

The external audit begins with security, privacy and the subcategory of data protection because the critical nature of the asset. Jay Heiser recommends the below key areas for analysis because all data within a network will flow through one or more of said areas (Heiser, 2008). The analysis for

Our audit will include obtaining an understanding of your internal controls sufficient to plan the audit and to determine the nature, timing, and extent of audit procedures to be performed. An audit is not designed to provide assurance on internal controls or to identify reportable conditions, that is, significant deficiencies or material weaknesses in the design or operation of internal control. Accordingly, we have no responsibility to identify and communicate significant deficiencies or material weaknesses in your internal controls as part of this engagement, and our engagement cannot be relied upon to disclose the same. However, during the audit, if we become aware of such reportable conditions, we will communicate them to you.

This paper can help in understanding how the board, management, and internal audit each have a significant role in ensuring information security is effective. We can learn that internal auditing can also help prepare the organization for an external regulatory audit (SOX or HIPAA, for example) by evaluating management 's efforts and providing recommendations for improvement prior to the external audit. This can help in understanding that IT security audits contribute to an organization 's regulatory compliance efforts by confirming to senior management and

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 current business environment has turned the spotlight on the role that a internal audit system must play within the larger drive towards effective governance, risk, compliance and quality management. An internal auditor has to work as a Technology savvy in-house that not only reports problems, but also gives constructive suggestions to line managers about how to

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.