Question

You work for a company that has outsourced its internal audit function for several years. Yesterday, the company’s chief financial officer (CFO) called you into her office and told you that the audit committee has decided that, following the practice guidelines set forth in the Standards, the company needs a chief audit executive (CAE). She asks you to assume this role in addition to your duties as director of taxation for the company.

A. Describe what your primary role will be as the company’s CAE of an outsourced internal audit function.

B. To whom should you, as the company’s CAE, report?

C. List the specific responsibilities you will have if you carry out your role as CAE in accordance with the Standards.

D. Explain how you will handle the potential conflict your role as director of taxation might have with your new role as CAE.

Answer 1

a) The CAE is principally liable for overseeing, coordinating, and managing the inner review work. The organization's review board of trustees is straightforwardly liable for enlisting, redressing, terminating, and regulating crafted by the CAE.

B) We inspect inclines in revealing lines for boss review officials, as more report to CEOs and board executives

Revealing lines have consistently been convoluted and precarious for boss review officials and inside review executives. Before, when they have answered to the CFO or boss lawful official, irreconcilable circumstances could emerge as inner review investigated the funds. Interior review executives could without much of a stretch end up inconsistent with their very own managers.

Presently, increasingly inward review pioneers report to the CEO, yet as inside review hopes to review such regions as culture or "tone at the top," those contentions haven't left. Also, there is consistently the likelihood that inside review discovers inappropriateness at the most significant levels during a review. For the present, the arrangement as a rule has been for the CAE to have duel revealing lines, authoritatively to the CEO and practically to the seat of the board's review panel .

C )

1. .Ensures compliance with established internal control procedures by examining records, reports, operating practices, and documentation.
2. Verifies assets and liabilities by comparing items to documentation.
3. Completes audit workpapers by documenting audit tests and findings.
4. Appraises adequacy of internal control systems by completing audit questionnaires.
5. Maintains internal control systems by updating audit programs and questionnaires; recommending new policies and procedures.
6. Communicates audit findings by preparing a final report; discussing findings with auditees.
7. Complies with federal, state, and local security legal requirements by studying existing and new security legislation; enforcing adherence to requirements; advising management on needed actions.
8. Prepares special audit and control reports by collecting, analyzing, and summarizing operating information and trends.
9. Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; participating in professional societies.

Contributes to team effort by accomplishing related results as needed.

D)An irreconcilable circumstance is a circumstance wherein an individual has contending interests or loyalties. Irreconcilable situations include an individual who has two connections that may contend with one another for the individual's loyalties.