Log in
Accounting
1
answer
0
watching
62
views

Based on the IIA resources, how might internal auditors supportthe achievement of Chipotle’s objectives (based on the situationdescribed in this week’s readings)?

This question is based on the food-borne illness problemChipotle had.

Watch
1
answer
0
watching
62
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Nelly Stracke
Nelly StrackeLv2
29 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related questions

Oxalite Inc: A Cautionary Tail (Which is a fictional company)

For discussion purposes, treat Oxalite, Inc. as a public company. Based on this assumption, reflect on the following:

a. What were some internal control deficiencies and even material weaknesses? How would they have been discovered? What would be the implications for Sarbanes-Oxley Section 404 compliance?

b. Analyze this case using the COSO Fraud Risk Management Guide Principles 1,2 and 5 relating to the COSO internal control components of control environment, risk assessment, and monitoring.

2. How could the external auditors have helped avoid this adverse corporate governance outcome?

3. How could the internal audit function have helped evaluate the design and operating effectiveness of internal controls?

4.mr. n.g shankar, cae of the aditya birla group, a large conglomerate in india and a former member of the internal audit standards board of the IIA, has remarked,"Poor culture leads to organizational disaster." In what way was his observation justified in the case of Oxalite, Inc?

Assignment 3: External and Internal Audit

Auditing is a very broad topic that covers all aspects of an organization. An audit not only examines the accuracy of financial statements but also examines the effectiveness of internal controls as well as the efficiency of overall operations of the organization. To accomplish the objectives of different types of audit within an organization, the audit function is broken down into the role of internal auditor and the external auditor.

In your role as a partner in the CPA firm Dewey, Wright, and Moore, review the following information.

Dewey, Wright, and Moore has just been approached by a new client, AV Imports and Exports, a company that trades goods with various countries. You are in charge of an audit engagement. To determine whether to take on the engagement, you proceed with the overall assessment of risk.

You meet with company management, the board of directors, and the audit committee, and begin communication with the previous audit firm. You also schedule a meeting with the internal auditors to learn more about their role and function within the organization.

In preparation for your scheduled meeting, research the external and internal audit function using your textbook, the Argosy University online library resources, and the Internet. Complete the following:

Compare the similarities between the responsibilities of the external and internal audit functions.

Compare the differences between the benefits of the two functions.

Make a recommendation to the management team based on your research

Present the comparisons in a chart. Include a 3-5 page report summarizing and explaining the chart as well as outlining how you think Dewey, Wright, and Moore can use the services of the internal auditors as part of the overall audit the firm would provide. Give reasons for your assertions and cite your sources.

Submit your chart and report in Word format. Utilize at least three resources in preparing your report. Apply APA standards for writing style to your work.

Colorado Springs Company (CSC) is a wholesaler with fiscal year ended December 31 of previous year. Since it is publicly-traded, it undergoes external audit. The most recent audit was completed in February of this year. As part of the audit of the financial statements, the auditors tested the effectiveness of management’s assessment of internal control over financial reporting. The auditor found out that existing internal controls were inadequate. Specifically, CSC’s accounting system for sales, cash receipts, accounts receivables, and accounts payable had material weakness. The audit revealed that there were:

Poor accounting system of recording keeping

Late deposits of cash receipts

Excessive aged and high accounts receivable balances

Disregard for early payments for discounts on invoices

Late payments of accounts payable (sometimes due to lack of cash)

Lax appropriate segregation of duties

Relaxed rules on accounting principles’ application

Unqualified supervisor and management

Inadequate control on supervisor and management overrides

Lax oversight by external board of directors

1) For each finding above, indicate internal control principle that CSC violated.

2) For each finding above, provide an appropriate recommendation for CSC to correct the weakness.

Weekly leaderboard

Home
Homework Help 3,900,000
Accounting 580,000
Start filling in the gaps now
Log in