A CAE with sufficient appropriate accounting and auditing expertise to properly

A cae with sufficient appropriate accounting and

  • Seneca College
  • ACF 653
  • Homework Help
  • leeto
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A CAE with sufficient appropriate accounting and auditing expertise to properly evaluate the situation.Better communication between the internal audit function and the independent outside audit firm.An internal audit policy on how to handle disagreements between the internal audit function and auditees. The policy might include, for example, a provision that the CAE is responsible for making final decisions regarding the resolution of disagreements when they occur.More careful scheduling of internal audit engagements. Conducting this engagement at the same time that management was closing the books and preparing the financial statements significantly
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Internal Auditing: Assurance and Advisory Services, 3rdEdition. © 2013 by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, FL 32701 USA IS2-11CHAPTER 2THE INTERNATIONAL PROFESSIONAL PRACTICES FRAMEWORK: AUTHORITATIVE GUIDANCE FOR THE INTERNAL AUDIT PROFESSIONIllustrative Solutionshampered management’s capacity to thoughtfully address the issues raised and take appropriate corrective action in a timely manner.C.Student responses regarding what they would do if they found themselves in Mark’s position will vary. The most practical response is to issue a report that includes one or more observations regardingthe significant control deficiencies without stating that there should be an accounting adjustment (this is up to management and the external auditor to resolve). If this course of action is taken, the CAE should communicate the control deficiencies to the audit committee and recommend that the chief financial officer (CFO) or controller review the accounting estimates.Mark also could request a meeting with the CAE to ensure that she is properly informed about the accounting and control issues, the ethical dilemma he is facing, and the problems he is having working with the auditee to resolve the issue. He might also ask the CAE to set up a meeting with the auditee to address the problem and determine whether a “meeting of the minds” about how to resolve the problem might be reached. The CAE is ultimately responsible for deciding what actions the internal audit function will take.
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