Internal Auditor Recommendation Brief
An out-of-control system for any business can raise red flags from the Securities and Exchange Commission (SEC). A company’s expects to have the type of control system that has a maximum level of effectiveness in risk management, control, and governance processes aimed to provide an assurance to the achievement of a company’s objectives and goals (Louwers, Ramsey, Sinason, & Strawser, 2007). It has come to this firm’s attention that XYZ Company is failing in this classification and requires the assistance from one of this firm’s internal auditors. In this brief, XYZ will review several aspects of the benefits of outsourcing an internal auditor to perform such tasks. In this brief, XYZ will recommendation for Michelle Ivery, one of the firm’s most professional and experienced internal auditors to accommodate XYZ’s requirements. This recommendation will include the Michelle’s professional background and experience in the restructuring of internal control systems and how this auditor’s background experience will benefit XYZ.
Brief Overview of an Internal Control System
An internal control system deals with a company’s financial and business policies and procedures. The objectives of a control system is to protect the company from inefficiencies such as waste and fraud; to ensure the company’s accounting and operating data display accuracy and reliability; the company’s compliance with policies are secure, and maintain an evaluated level of performance of each organizational unit within the company (Kansas State University, 2003). When loss of control becomes obvious, risks such as loss of assets, non-compliance issues, fraudulent activities, poor business decisions, reduced productivity, etc. can develop within the company. To keep this from occurring, this firm is recommending using the services of an internal auditor.
Benefits of Using an Internal Auditor
An internal auditor has one primary objective: to examine,...