Institute of Internal Auditors Essays

This document contains Assignment 1 of Morgan Jenkins Gregory, Mechanical Engineering student at the North-West University of Potchefstroom, for FIAP 172. In this document the individual provides a critical engineering review on the development of the Golden Gate Bridge. His review provides a detailed discussion of the specific engineering problem statement, how the solutions to the problem were developed and applied as well as the resources that were used throughout the development of the bridge

Boeing Case Study: Sarbanes-Oxley Act's Internal Control Mandates and Whistleblowing Name University Boeing Case Study: Sarbanes-Oxley Act's Internal Control Mandates and Whistleblowing Similar to other public companies, Boeing intends to comply with the Sarbanes-Oxley Act's (SOX) internal control mandates. To ensure that its internal audit committee sufficiently handled all requirements, Boeing contracted with PricewaterhouseCoopers (PwC) auditors for additional support. In January 2007

This memorandum highlights significant portions of Statement on Auditing Standards (SAS) No. 115 Communication of Internal Control Related Matters Identified in an Audit and answers some questions frequently asked by accountants about SAS 115 ("The American Institute Of Certified Public Accountants", 2015). SAS 115 Highlights Here are some highlights of SAS 115. Applicability (SAS 115, 2015, para. 01). Definitions. A material weakness (SAS 115, 2015, para. 06). A significant deficiency (SAS 115

reporting, review audit requirements, and impose sanctions for inaccurate disclosure and violation of ethical standards. Following SOX, AICPA, PCAOB, and COSO together with the Institute of Management Accountants, the American Institute of Certified Public Accountants, Financial Executives International, the Institute of Internal Auditors, and the American Accounting Association developed models and themes that guide companies on accounting ethics and

The most critical function of an auditor is that they have to follow all the auditing standards and the performance of auditors in the prevention of fraud Audit expectation gap: The relevance of the role theory is that every individual in an organization has a part or role to play in fulfilling their job requirements. Roles also indicate specific forms of behaviors required by specific tasks to be performed The main beliefs are directly related to the internal auditor and the issue of fraud prevention

these outcomes from Mark’s report to keep their rewards and the significant image of the association. Mark must pick whether to forbid results and abuse the Institute of Internal Auditing's Code of Ethics or conflict with his organization and report his findings. 2 The objectivity principle rule of conduct 2.1 violated that is “internal auditor shall not participate in any activity or relationship that may impair or be presumed to impair their unbiased assessment. This participation includes those

on strengthening internal controls. Strong internal control is paramount in preventing fraud. Besides, the company’s attitude towards fraud, internal controls and an ethical organizational culture are equally significant too. Today, companies with strong internal control also not exceptional from fraud. However, internal and external criminals have less chances in abusing internal control if the internal control policies, processes and procedures are enhanced. Strengthening internal control compromises

Jeffords (1992) examined 910 cases of frauds submitted to the “Internal Auditor” during the nine-year period from 1981 to 1989 to assess the specific risk factors cited in the Treadway Commission Report. He concluded that “approximately 63 percent of the 910 fraud cases are classified under the internal control risks.” Calderon and Green (1994) did an analysis of 114 actual cases of business fraud published in the “Internal Auditor” during 1986 to 1990. They concluded that limited separation of

how a company is doing over a period of time. The following are some of the duties that an accountant may have to perform: Determine payroll requirements, maintain payroll data, and prepare and process monthly payrolls Interact with internal and external auditors in completing audits Explain billing invoices and accounting policies to staff, vendors, and clients Prepare and review budgets, revenue, expenses, payroll entries, invoices, and other accounting documents Analyze and review budgets

1. Auditing can be defined as carrying out a formal financial investigation or examination of a firm and its financial statements. During the process of auditing the auditors will go through all of the company’s books and financial statements. He will analyze research and go through all the relevant financial records to ensure that they are accurate and whether taxes are being paid properly. 2. There are various benefits of the auditing process. The benefits of an audit include analyzing and

asked to audit this dog manufacturing company. Since this company started as family owned business and quickly grew, the sister’s did not have much experience in understanding the accounting principles or in understanding the importance of having internal controls. In order for the business to continue to grow, there needs to be some changes to the way they operate. Smackey Dog Foods has made an important first step by hiring a CPA firm to conduct an audit of their financial statements. The Securities

highlights the importance of internal control functions that identify, assess, monitor and report the risks and controls effectiveness on an ongoing basis   Governing Bodies or Organizations These governing bodies have enacted and developed various professional standards and acts that form the basis of audit principles. Table 2 List of governing bodies for Audit Organization Name Principles or Acts or Standards relevant for Audit function Remarks IIA (The Institute of Internal Auditors) International Professional

with the COSO ERM framework (above). The framework is one of the most comprehensive frameworks and is designed to offer organizations a widely accepted model for evaluating their risk management efforts. It is principles based which expands on internal control concepts by providing a more robust focus to ERM by recognizing that an effective ERM process must be applied within the context of strategy setting. It provides guidance to help organizations build effective programs for identifying, measuring

Identify the affected party in the case. (internal and external parties and consequences) Internal party Barry Minkow A federal grand jury indicted Minkow and ten other ZZZZ Best insiders on 54 counts of racketeering, securities fraud, money laundering, embezzlement, mail fraud, tax evasion, and bank fraud in January 1988. In his indictment, Minkow is accused of draining his company of assets while bilking banks and investors. Additionally, Minkow has been accused of setting up false companies

to impose audit standards that requires document retention and internal control testing. The second title of the act was an amendment to the meaning of auditor’s independence. It also imposes additional

industry’s specifications (Software Engineering Institute, 2012). • Corporate Angle  The managers attributed to the company as the shareholders of Enron didn’t realize the matter from superficial high stock price. Thus, the whole company was not responsible for the scandal. The board and the other shareholders paid lots of attention to the decisions made by the CEO’s, CFO’s and the relevant staffs as Enron avoided this results (Software Engineering Institute,

Abstract This paper explores the ethics of accounting and why ethical behavior in accounting professions is important to different stakeholders in business. An accounting scandal will be examined for unethical behavior. New regulations and reforms that have been introduced to help combat unethical behavior will also surveyed. In closing this paper will consider the biblical implications of accounting. Ethics in Accounting Importance of The Accounting Profession Accounting is important in business

system. This applies even if a company’s financial reports are made accessible to creditors to acquire loans. Separating functions within the department is one of the ways in which an accounting department protects its accounting system ethics and internal users. For example, the authority to approve or sign checks is not given to the person who generates checks during the accounts payable function. This includes working across functions. The duties of the accounting payroll clerk is separate from

anticipate the negative press and loss of jobs. Had anyone considered “the worst-case scenario” (McClafferty, 2015), surely they would have quietly put a halt to the practice, returned all ill-gotten fees, reported the issues and resolution to their auditors, and rewarded the whistleblowers for preventing a potential

. Importance of Teaching Business Ethics We demonstrated in earlier chapters the concept of ethics in business and we showed that there is no doubt about the importance of ethics in today’s society and in business practices in particular. One can hardly read a business publication today without being reminded of a corporate scandal that points to dirty business performance. These scandals referred as accounting scandals have directed the discussions towards the effect of business ethics education