Recommendation Brief for an Internal Accountant
A client has an out-of-control system. A recommendation has been made to hire an internal accountant.
Write a recommendation brief of no more than 700 words for the client, justifying the benefits of using an internal auditor.
Conclude your recommendation by referring a person for the job based on their background.
Explain how the background benefits the client.
ACC 544
Recommendation Brief for an Internal Accountant The current company system is out of control and steps need to be taken to regain system control. Internal control is vital to improve an organization’s operation efficiency and effectiveness, financial reporting reliability, and law and regulation compliance
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With the business’ internal control out of control I would recommend to hire an accountant with extensive internal audit situation with businesses that was in a similar state. A company executive should be placed as project head to work with the auditor. This will help to give the auditor a clear understanding of where the company is and the direction it wants to go. By them working together the executive offers the business plan of what they want and the auditor offers the expertise and experience in process to get the company there. The sooner the company hires an internal auditor the sooner the business internal control system can be turned around.
Bibliography
COSO. (1992). Internal Control - Integrated Framework. Retrieved May 28, 2011, from COSO Committee of Sponsoring Organizations of the Treadway Commission: http://www.coso.org/IC-IntegratedFramework-summary.htm
Louwers, T., Ramsay, R., Sinason, D., & Strawser, J. (2007). Backmatter Module D: Internal, Governmental, and Fraud Audits. In T. Louwers, R. Ramsay, D. Sinason, & J. Strawser, Auditing and Assurance Services. McGraw-Hill Companies, Inc.
Standardization, I. O. (2002). Guidelines for Quality and/or Environmental Management Systems Auditing ISO19011:2002, 1e. Switzerland: ISO.
The Institute of Internal Auditors (IIA), S. a. (n.d.). International Standards for the Professional Practice of
This course is the first in a two-part series that deals with auditing a company 's financial reports, internal controls, and
Overall Strength: in general, the article provides structure to a concept that is very intangible by: (a) describing the nature and the functions of control; (b) segregating the MCS into categories: core control system, organizational structure, and organizational culture; (c) illustrating how to apply the control model (satisfied my approach) (d) provides a basis for designing and evaluating the system. The manner, in which the model is presented, with its use of figures, further emphasizes the structure of the model. See below on further emphasis on parts (a) -(c).
1. To have a strong internal control system, a business must have good administrative controls. Administrative controls include: A. B. C. D. the reconciliation of the bank statement. the accuracy of the recording procedures. assessing compliance with company policies. maintenance of accurate inventory records.
With every internal control weakness a company needs to identify either a control policy or control procedure that will help prevent error or fraud from occuring in the future. Based on my suggestions as to what weaknesses existed at Goodner Brothers, Inc. I have suggested the policies or procedures that could be implemented to help prevent future issues. The internal control I would implement to hinder employee access to the accounting system would be to secure all computer programs with individual usernames and passwords to prevent access from others. The bookkeeper should be the only employee with access to the accounting system and to test this procedure the company would need to try and access the software without a username and password. To monitor the storage warehouse situation, the company should install computer scanning systems and video cameras at each location to supervize whether tires are being scanned in and out upon delivery and pick-up and to determine who and when these transactions are taking place. Semi-annual reviews should be conducted by sales managers to evaluate their sales representative. In addition, strengthening the tone at the top mentality should lie in the hands of each owner by personally reviewing all sales managers to create a top down effect.
Legitimacy in accounting practices is ensured by the check and balance of having independent auditors from registered public accountant firms reviewing financial practices. The report features eleven sections and these sections pertain to accounting overview, independence of auditors to reduce interest conflicts, corporate responsibility, financial disclosures, tax returns, criminal fraud and various elements of white collar criminal activity (107th Congress
Internal control is one of the integral parts of an organization. It is a system which controls different types of risks,
● Monitoring — Internal control systems need to be monitored–a process that assesses the quality of the system’s performance over time. This is accomplished through ongoing monitoring activities, separate evaluations or a combination of the two. Ongoing monitoring occurs in the course of operations. It includes regular management and supervisory activities, and other actions personnel take in performing their duties. The scope and frequency of separate evaluations will depend primarily on an assessment of risks and the effectiveness of ongoing monitoring procedures. Internal control deficiencies should be reported upstream, with serious matters reported to top management and the board.
In May 2008, the AICPA’s Governing Council designated the International Accounting Standards Board (IASB) as the body authorized to establish international financial accounting and reporting principles under rule 202 and 203 of the AICPA Code of Professional Conduct. Below is an illustrative Independent Auditor’s Report on financial statements issued in conformity with IFRS.
So what are internal controls? And why are they so important? Internal controls describe the policies, plans, and procedures
There are several procedures that should be considered when implementing internal controls for your business. There should be a segregation of duties between different individuals to lessen the threat of
This Appendix includes guidance for reviewing the Office of Inspector General’s (OIG’s) attestation engagements conducted in accordance with Government Auditing Standards (GAS), Chapter 6, and the American Institute of Certified Public Accountants’ (AICPA’s) Statements on Standards for Attestation Engagements (SSAE). When an auditor conducts an attestation engagement under generally accepted government auditing standards (GAGAS), the engagement must be conducted in accordance with the SSAEs and additional GAGAS standards. This appendix is not intended to replace auditor judgment, and while comprehensive, the peer review team may
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 framework describes internal control as a process designed to provide reasonable assurance regarding the achievement of objectives in the following categories:
3 pillars of effective internal audit services- independence and objectivitiy, proficiency, and due professional care.
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.