Case study answer.docx - Requirements of part A Entity-level controls define organization\u2019s environment or atmosphere They are designed to mitigate

Case study answer.docx - Requirements of part A...

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Requirements of part A: Entity-level controls define organization’s environment or atmosphere. They are designed to mitigate risks that exist at the organization wide level (internal and external risks). Entity level controls that can be founded in SHR Corporation are as follows: Independent and objective internal audit function/committee: In SHR Corp., one can expect to find an organizational culture that allows the internal audit function to fulfill its responsibilities free from interference. Also, the internal auditors have an unbiased mental attitude that allows them to perform engagements in an honest manner and no significant quality compromises are made. Ethical conduct and integral policies: In SHR Corp., one can expect to find an organizational environment where policies, procedures, guidelines and tools are clearly documented and communicated. The organization demonstrates ethical framework and integral values which are imbedded in every department. Accountability from the management and internal audit committee: One can expect to find controls that are designed accountability to the management and internal auditors to ensure that they maintain the level of independence and objectivity in the organization. Organizational structure contributive to efficiency and effectiveness: One can expect to find an organizational structure which clearly communicate the roles and responsibilities of the management and the internal audit function. The structure will determine the work allocation and grouping of activities according to the needs and goals. All the activities under organizational structure will be delegated by manager to achieve efficiency and effectiveness. Audit procedures for controls that are soft in nature: Engaging and interviewing senior managers and inquiring about ethical issues and the degree of importance given to ethical conduct when they make any minor or major decisions.
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Conducting questionnaires from managers and employees to determine their perspective of ethical conduct being followed in the organization. Establishing whether the senior management takes appropriate disciplinary action when the policies are not followed by reading company documents and evidence of actions taken in past.
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  • Spring '16
  • internal auditor

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