You are hired as Manager of Internal Audit for a company similar to Phar-Mor (the company...

You are hired as Manager of Internal Audit for a company similar to Phar-Mor (the company in a recent case study). The internal controls for a long time have been "weak at best." As a result of the deteriorating controls, management has gained the approval of the Board to "change the environment." Upon being hired by management who you believe sincerely expects and demands a change in the environment, you are charged with bring about the requisite change in ethical climate in the organization.

Directions: Outline the approach you would take in bringing about an ethical framework and setting appropriate standards of conduct in the organization. Be specific in your response. Identify mechanisms and strategies you would follow; identify ethical approaches, theories, and successful role models. your overall approach and command on the job will determine the points you are awarded for this question.

Expert Solution

Manager of internal audit has to make the following changes and observations:

1.promote orderly,economic,efficient and effective operations and quality products.

2.he has to made the management to develop uniform policies and procedures across the organisation.

3.proper Segregation of duties.i.e. one person cannot handle the transaction from start to finish.

4.Reviewing existing accounting and financial controls and other legal compliance process in place and make necessary revisions or additions.

5.update policy manuals and other documents in human resource to ensure compliance by all staff.

6.conduct regular internal audits and reviews on periodic basis to assess compliance of all departments and employees.

7.Review processe and records to see that accounts are as per GAAP ,laws,industry and company standards.

8.Observe whether proper training and awareness sessions conducted to make employees to comply with all regulations, procedures and processes.

9.update with changes in accounting and external audit procedures to ensure his company in compliance.

10.standard compliance practices and other changes that may impact the merit of internal control policies

ekkarill92 answered 1 year ago

Question 7: Understanding & Testing Internal Controls You are the manager on the audit of Pix...

Question 7: Understanding & Testing Internal Controls You are the manager on the audit of Pix Ltd for the year ended 30 September 2016. You are briefing your team to ensure that they have a proper understanding of the work to be done before they start. Required: a) Briefly explain the importance of internal controls to both the entity and the auditor? b) Briefly explain any three limitations of internal controls? c) Briefly explain how an ‘Integrated Test Facility’ is...

Assume that you have just been hired by Tampa Electronics in their internal Audit department. Ms....

Assume that you have just been hired by Tampa Electronics in their internal Audit department. Ms. Gonzales has asked you to undertake the task of examining the travel expese data to determine whether there are any potentially fraudulent travel reimbursements. In addition to clear violations of the company's rule e.g., an approval being used for multiple trips, an expense reimbursement without an approval, you should be looking for indicators of potentially fraudulent travel expense reimbursement