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

released the Report of the National Commission on Fraudulent Financial Reporting. Later in 1992 COSO published Internal Control—Integrated Framework which gave corporations a guide to put in place effective internal control. In 2002 the Sarbanes-Oxley Act was passed requiring companies to access the effectiveness of their internal controls. In 2013 COSO released an updated version of Internal Control—Integrated Framework. COSO was created as a result of the financial corruption that was occurring in

requirements for external auditors. In Title II—Auditor Independence, Section 201 (g), (h), and Section 202 (i) set up rules for public accounting firms. And Section 208 (b) concludes them. Section 201 Services outside the scope of practice of auditors states the following: “(g) PROHIBITED ACTIVITIES.—Except

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

of 2008, more and more of investor were withdrawing funds and mad doff was unable to pay them. Madoff pleaded guilty to criminal charges including securities fraud and money laundering. He was sentenced to 150 years in federal prison. Madoff's auditor also faces criminal charges, allegedly failing to conduct due diligence (reuters.com 2009).

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

Additionally, it led to the collapse of Arthur Andersen, one of the largest accountancy and audit firm in the world at that time and the passage of the Sarbanes-Oxely Act of 2002. Furthermore, this essay will illustrate the three key audit issues (i.e auditors independence, due diligence and true & fair view accounting) which raised during the collapse, following by discussing the relevance of the developments following Enron(i.e Sarbanes-Oxely Act) to Australian

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

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

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

what is it that Auditors do, well I have the answer to that. An auditor is someone who prepares and examines financial records. They ensure that financial records are accurate and that taxes are paid properly and on time. They assess financial operations and work to help ensure that organizations run efficiently. The number of Positions available for Auditors is 1,332,700. An undergraduate degree in accounting is the minimum educational requirement for pursuing a career as an auditor. However, most

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