Based on what you have learned about auditors, list and describe the three groups of people that
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Question:
Based on what you have learned about auditors, list and describe the three groups of people that conduct audits.
Internal Auditors
- Employed by the company to provide independent and objective evaluations of financial and operational business activities, including corporate.
- Often employed by the company, but the company can hire a third party to perform the internal audit.
External Auditors
- An objective, independent, third-party review of the controls and reporting procedures of a public or private company.
- An increase in compliance frameworks require the company to hire certified third parties to certify company compliance.
Regulators
- Regulatory auditors are external auditors that review controls when there has been a breach or if there are issues in a company.
What is the purpose of the audits that each of the groups conduct?
IT audits:
- To examine and evaluate an organization's information technology infrastructure, policies, and operations.
- To assess the presence and effectiveness of IT controls and ensure compliance with company policies.
- To test specific controls.
Financial audits:
- To assess the financial position and health of an organization.
Operational audits:
- To evaluate the policies, procedures, and operational controls across different departments to ensure adequate procedures.
Investigative audits:
- To review records and procedures based on suspicious activity or alleged violations.
PCI DSS audits:
- To ensure compliance with security standards covering the processing of credit or debit card payments.
CMMC audits:
- To assess cybersecurity implementation across the defense industrial base.
Regulatory audits:
- To review controls when there has been a breach or if there are issues in a company.
To whom does each group report?
- Internal and external auditors report back to the public or private company that hired them, and regulatory auditors report to a regulatory agency or governing body.
What are the consequences of the findings for each group?
- Audit Failure: the results can be harmful to both the company and the auditor. There are lots of possible consequences, including the following: Financial losses.
- Replies - due on Friday of Week 1:
- Respond to at least one of your classmates.
- Do you agree with each of their answers? Why or why not?
- Which type of auditor appeals to you most? Why?
- Respond to at least one of your classmates.
Related Book For
Auditing Cases An Interactive Learning Approach
ISBN: 9780134421827
7th Edition
Authors: Mark S Beasley, Frank A. Buckless, Steven M. Glover, Douglas F Prawitt
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