Assignment Wk5 - Reporting and Relationships Case Study:...

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Reporting and Relationships Case Study: Internal Auditing Reporting Relationships: Serving Two Masters What is the correct relationship of internal audit to senior management? The correct relationship to exist between internal auditors to senior management is one that meets the risk areas as defined by importance to senior management; this includes assurance and consultative reporting result. The same premise is also true for creating a correct relationship with operational management and the audit committee; under these cases, operational management desires consultative results and the audit committee desires assurance results. How should conflict be managed? Is conflict inevitable? Since internal auditors report to the three main groups of the company, it is expected for conflict to arise; each entity is looking for the auditor to modify the findings to suit the entity’s needs. For example, operational management is concerned with consultative results pertaining to the operational efficiency and adequacy of internal control mechanisms.
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This note was uploaded on 02/11/2012 for the course AC 562 AC 562 taught by Professor Online during the Spring '11 term at Keller Graduate School of Management.

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Assignment Wk5 - Reporting and Relationships Case Study:...

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