These procedures describe the forms of accountability, some comments on standard internal controls, and introduces the internal audit function. Except in the most really serious situations an auditor’s job is not to comment straight on no matter whether an organization is in monetary difficulty. Financial consulting firm MorganFranklin PDF points out that if the numbers do not make sense to you as the enterprise owner, they undoubtedly won’t make sense to your auditors.
Federal Managers’ Financial Integrity Act needs that federal agency executives periodically overview and annually report on the agency’s internal handle systems. Due consideration ought to be offered to the priority level attached to the suggestions in the audit report and the timescales for action to which the University is committed.
Relying on the audit firm usually made sense from the viewpoint of efficiency and cost containment. The economic transactions and documents are then looked at. It is noteworthy that the sample must show compliance with GAAP. The Audit Committee Handbook (pdf) is a excellent guide for an internal audit committee, prepared for our UCC Massachusetts Conference by Frank A. Marino, MBA, CPA.
At these meetings the implications of the audit findings are reviewed and the adequacy of the management response thought of. To attend the Audit Committee meeting to discuss the contents of an audit report, the suggestions created, and the commitment necessary to address the action strategy.
As auditors gain higher access to information and audit procedures that can be performed by a computerized tool, the function of the audit will become far more like a master control strategy, which includes higher automated controls and higher timeliness.