...AUDITING AND THE PUBLIC ACCOUNTING PROFESSION AUDITING AND ASSURANCE SERVICES DEFINED Auditing plays a vital role in business, goverment, and our economy. As a vocation, auditing offers the opportunity for challenging and rewarding careers in public accounting, industry and goverment. Many auditors develop a client based with a concentration in one or more key industries. As a result of serving many client in similar industries, few individuals understand the key competitiveness factors for a business better than auditor. Individuals choosing an auditing in a public accounting firm have the opportunity to progress from a starting position of staff assisstant to senior auditor, to manager and then to partner. Regardless of their career path, most auditors are recognized for their expertise in evaluating organizational performance. AUDITING DEFINED The term auditing is used to describe a broad range of activities in our society. The Report of the Committee on Basic Auditing Concepts of the American Accounting Association defines auditing as : “a systematic process of objectively obtaining and evaluating evidence regarding assertion about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating the results to interested users.” Several attributes of auditing contained in this definition merit special comment: 1. A systematic process connotes a logical, structured, and organized...
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...Key Concepts and Principles of Internal Quality Assurance This handout will cover: Why should IQA take place? The functions of IQA IQA cycle Key concepts of IQA IQA rationale Key principles of IQA Role & responsibilities of an IQA Regulations, Policies and Procedures Why should IQA take place? IQA is the monitoring of the learner journey throughout their time with the organisation, it should take place to ensure the learners have received a quality service and that assessment has been correct and fair The IQA process is to: plan what will be monitored, from whom and when observe training and assessor practice, and give developmental feedback sample assessment records, learners’ work and assessor decisions meet with learners and others, for example, witnesses facilitate the standardisation of assessor practice hold team meetings support assessors. Internal verification was the previous term used for monitoring assessment, however, IQA monitors the whole process from when a learner commences to when they leave. The functions of IQA To: • • • • • • uphold credibility (of the qualification or what is being assessed, of the organisation etc) ensure quality throughout the learner journey ensure accuracy and consistency of decisions manage risk identify issues and trends support and develop assessors If there is no external formal examination taken by learners, there has to be a system of monitoring the performance of assessors. If not, assessors...
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...The Emerald Research Register for this journal is available at www.emeraldinsight.com/researchregister The current issue and full text archive of this journal is available at www.emeraldinsight.com/0268-6902.htm MAJ 19,4 Control self-assessment as a route to organisational excellence A Scottish Housing Association case study James Sheffield Comhairle, The Scottish Centre for European Public Sector Studies, University of Paisley, Paisley, Scotland, and 484 Siobhan White Division of Accounting and Finance, Glasgow Caledonian University Business School, Glasgow, Scotland Keywords Scotland, Housing, Financial management, Auditing, Corporate governance Abstract Control self-assessment (CSA) has been discussed as an audit technique, but little practical guidance is available in the UK on the subject. A limited number of public sector organisations have implemented it. This paper describes a case study of CSA implementation in a Scottish Housing Association. The case study details the decision processes that led to the choice of CSA as a favoured audit technique, and the development of CSA skills within the organisation. This paper examines the broader benefits of a CSA approach, in terms of performance management and employee empowerment. This paper also uses a cost benefit analysis to examine the efficacy of CSA for small organisations. Managerial Auditing Journal Vol. 19 No. 4, 2004 pp. 484-492 q Emerald Group Publishing Limited 0268-6902 DOI 10.1108/02686900410530493 ...
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...Internal audit Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.[1] Internal auditing is a catalyst for improving an organization's governance, risk management and management controls by providing insight and recommendations based on analyses and assessments of data and business processes. With commitment to integrity and accountability, internal auditing provides value to governing bodies and senior management as an objective source of independent advice. Professionals called internal auditors are employed by organizations to perform the internal auditing activity. The scope of internal auditing within an organization is broad and may involve topics such as an organization's governance, risk management and management controls over: efficiency/effectiveness of operations (including safeguarding of assets), the reliability of financial and management reporting, and compliance with laws and regulations. Internal auditing may also involve conducting proactive fraud audits to identify potentially fraudulent acts; participating in fraud investigations under the direction of fraud investigation professionals, and conducting post investigation fraud audits to identify control breakdowns and establish...
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...SAMPLE RESEARCH PROPOSAL PROMOTING GOOD GOVERNANCE IN PUBLIC INSTITUTIONS OF GHANA: THE ROLE OF THE INTERNAL AUDITOR 5/5/2009 SCHOOL OF BUSINESS, UNIVERSITY OF CAPE COAST, GHANA ISHMEAL OFORI AMPONSAH (STUDENT) Table of Contents Introduction........................................................................................ ........................3 Background of the Study ........................................................................................3 Problem Statement............................................................................................ ......4 Research Questions: .................................................................................. .........4 Hypothesis:..........................................................................................................4 Objectives............................................................................................................... .5 Significance of Study............................................................................... ................5 Literature Review.................................................................................................... ....6 Definition of Internal Audit...................................................................................6 Role of the Internal Auditor in governance ..........................................................7 Methodology...........................................................................
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...40 SU 1: Strategic and Operational Roles of Internal Audit QUESTIONS 1.1 Change Management 1. An organization's management perceives the need to make significant changes. Which of the following factors is management least likely to be able to change? A. The organization's members. B. The organization's structure. C. The organization's environment. D. The organization's technology. Answer (C) is correct. REQUIRED: The factor management is least likely to be able to change. DISCUSSION: The environment of an organization consists of external forces outside its direct control that may affect its performance. These forces include competitors, suppliers, customers, regulators, climate, culture, pol technological change, and many other factors. The members are a factor that managers are clearly Answe~(A) is incorrect. factor that managers are incorrect. The organiz I are clearly able to change. organization's technology' able to change. 2. Lack of skills, threats to job status or security, and fear of failure all have been identified as reasons that employees often A. Want to change the culture of their organization. B. Are dissatisfied with the structure of their organization. . C. Are unable to perform their jobs. D. Resist organizational change. Lack of skills, threats to job status or re inhibit changes in the culture of the (8) is incorrect. Lack of skills, threats to job status . rity, and fear of failure are not symptoms of dissatistacjion with the structure of the organization...
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...Internal Audit Chapter 5 Review 1. A business process is the set of connected activities linked with each other for the purpose of achieving an objective or goal. 2. Two general types of business processes are present in most organizations that deliver goods and services: the operating processes and the management and support processes. The operating processes include strategic planning, product and service design and development, marketing, production/delivery, invoicing, and collection. The management and support processes include obtaining and managing the organization’s human resources (this could include hiring, training, benefits), managing financial resources (including budgeting, financial accounting, treasury), managing the information technology resources, managing physical resources (facilities management, security, maintenance, etc.), the organization’s compliance and governance systems, and the process for managing the organization’s external stakeholders (government relations, public relations, etc.). 5. A top-down approach begins at the entity level with the organization’s objectives, and then identifies the key processes critical to the success of each of the organization’s objectives. A bottom-up approach begins by looking at all processes directly at the activity level, and then aggregates the identified processes across the organization. 7. The two common methods used to document processes are process maps and process write-ups. Process...
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...Introduction to Quality Chapter 1 The History and Importance of Quality In a broad sense, quality assurance refers to any planned and systematic activity directed toward providing consumers with products (goods and services) of appropriate quality belong with the confidence that products meet consumers’ requirements. Quality assurance has been an important aspect of production operations throughout history. * The Age of Craftsmanship During the middle ages in Europe, skilled craftsperson, adequately trained by craft guilds, served as both as manufacturer and inspector. Quality assurance was informal; every effort was made to ensure that quality was built into the final product by the people who produce it. These themes which were lost with the advent of industrial revolution are important foundations of modern quality assurance efforts. * The Early Twentieth Century In the early 1900s, the work of Frederick W. Taylor, led to new philosophy of production. Taylor’s philosophy was to separate the planning function from the execution function. Managers and engineers were given the task of planning, supervisor and workers took on the task of execution. Inspection was the primary mean of quality control during the first half of the twentieth century. * Post- World War II After the war, during the late 1940s and early 1950s, Quality was not a priority of top managers. Top management showed little interest in quality improvement on the prevention of defects...
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...measure the attainment of these goals. The Balanced scorecard has been broken down and evaluated into four main areas which include financials, internal business processes, customers and learning and growth. One of the most important factors of any business in the financial aspect of the business and ensuring that Noble Oilfield Services reaches its financial goals is a key task of management. The financial objectives of the balanced scorecard are to lower operating costs, increase revenue and to increase overall profitability. These objectives will be measured by examining the statement of earnings, evaluating year on year growth and IBT (Income Before Taxes) respectively. The target for lowering operating costs are set for a 5% reduction year on year, increasing revenue by 10% year on year and increasing overall profitability by 15% year on year. To achieve these objectives the company will undertake an initiative to standardize equipment and parts to reduce operational costs, optimize the delivery of services to grow revenue and optimize and cross train staff to increase overall profitability. The analysis of internal business processes identified three objectives necessary to satisfy both shareholders and customers while achieving the company’s growth plans. The three identified objectives are eliminating all service quality issues, providing on time delivery of services and excelling at providing superior customer...
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...EVALUATING QUALITY MANAGEMENT IN UNIVERSITY DEPARTMENTS Abstract Purpose Despite the abundance of research on quality management there is no universal consensus on how best to measure quality in higher education. This paper undertakes a critical evaluation of the different methods used to assess the quality of provision in higher education departments in the UK. Methodology Drawing on relevant literature, the authors develop a quality audit tool that incorporates all key components of effective quality management programmes and apply it to a single UK case study department. Findings The findings suggest that the potential for quality enhancement is determined by the manner in which the evaluation is conducted and subsequent change implemented. Perhaps unsurprisingly there is currently an emphasis on internally derived quantitative data and there is potential to enhance the management of the quality of HE programmes. Research Limitations/Implications This article has concentrated on the development of the quality audit tool and tested this within one UK department. Work is underway to now test the tool on an international basis. Paper type Research paper Key Words quality, higher education EVALUATING QUALITY MANAGEMENT IN UNIVERSITY DEPARTMENTS Introduction In many countries and many cultures, the issue of quality management has been firmly on the agenda of higher education institutions for quite some time. Higher education for the masses...
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...Framework for Enterprise Risk Management © 2013 Johnson & Johnson Contents Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 J&J Strategic Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 What is Risk?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 J&J Approach to Enterprise Risk Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Governance & Oversight. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 . . 2 3 Introduction In order to deliver value to our consumers, patients, caregivers, employees, communities and shareholders, we at Johnson & Johnson (J&J) must understand and manage the risks faced across our entire organization. Risks are inherent in our business activities and can relate to strategic threats, operational issues, compliance with laws, and reporting obligations. This document...
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...Guide to Internal Control Over Financial Reporting The Center for Audit Quality prepared this Guide to provide an overview for the general public of internal control over financial reporting (“ICFR”). The Guide explains what public company ICFR is and describes management’s responsibility for implementing effective ICFR. The Guide also discusses the responsibilities of the audit committee to oversee ICFR and of the independent auditor to audit the effectiveness of the company’s ICFR. A Guide to Internal Control Over Financial Reporting P reparing reliable financial information is a key responsibility of the management of every public company. The ability to effectively manage the company’s business requires access to timely and accurate information. Moreover, investors must be able to place confidence in a company’s financial reports if the company wants to raise capital in the public securities markets. Management’s ability to fulfill its financial reporting responsibilities depends in part on the design and effectiveness of the processes and safeguards it has put in place over accounting and financial reporting. Without such controls, it would be extremely difficult for most business organizations — especially those with numerous locations, operations, and processes — to prepare timely and reliable financial reports for management, investors, lenders, and other users. While no practical control system can absolutely assure that financial reports...
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...2.4 Service Offering 7 2.5 Keys to Success 8 2.6 Critical Issues 8 3. Marketing Strategy 8 3.1 Mission 8 3.2 Marketing Objectives 9 3.3 Financial Objectives 9 3.4 Target Markets 10 3.5 Positioning 11 3.6 Strategies 11 3.7 Marketing Mix 11 3.8 Marketing Research 12 4. Controls 13 4.1 Implementation 13 4.2 Marketing Organization 13 4.3 Contingency Planning 14 5. Conclusion 15 6. References 15 1. Executive Summary Shared service organizations have been an important strategy for process optimization and cost control in any fortune company. Specifically IT shared services offer unparallel benefits by combining the synergies of effective functional knowledge with exceptional technical disciplines. Various common services such as IT help desk, Quality assurance, application development and maintenance; change management can be combined and offered to various parts of the organization. In addition to cost reduction, several best practices can be established in terms of technology standards, process standards and resource utilization. Though the benefits are clear several companies face challenges in implementing a well functioning IT shared services organization. This marketing plan examines the various challenges associated in setting and executing an IT shared services organization and offers various solutions. Some of the key enablers include establishing service level agreements and objectives, key performance measurements, establishing...
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...Unit 1 – Understanding the Principles and Practices of Internally Assuring the Quality of Assessment LO1 – Understand the context and principles of internal quality assurance 1.1 Explain the function of internal quality assurance in learning and development The IQA’s role is key for quality in both the national frame work and the quality and management systems of approved centres. It is important that the IQA ensures the quality of learning, the reliability of assessment decisions to be fair to all learners and uphold the credibility of the qualification and the organisation. The IAQ’s ensure the quality of evidence collected and submitted in all learning, delivery and assessment, providing feedback and support to the assessors on the evidence, it is checked to make sure it is reliable and robust and variety of assessment methods have been used and match the National Occupational Standards (NOS). The IQA also provides support to all involved in the assessment process from start to finish by making sure candidates and employers understand the qualification and the benefits to both upon completion giving support through service level agreements underpinning knowledge of policies and procedures through visits where discussions and feedback will be given. IQA’s provide support direct to Assessors by monitoring progress of each leaner via a sampling plan, this plan will identify when a candidate’s work is required by the IQA for interim and end sampling and provide a platform...
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...Risk-based Auditing PHIL GRIFFITHS CHAPTER 1 What is Risk-based Audit? The Internal Audit identity crisis Let’s face it, if you are reading this book, you are probably either already an auditor, preparing to become one or responsible for managing or overseeing the function. The other possibility is that you are considering a role in Internal Audit – if this is the case I hope to be able to whet your appetite and show you what a wonderful opportunity it brings. Whichever category of reader you are the first major bridge to be crossed is the identity of the function. I was to learn that we tend to meet any new situations by reorganising – a wonderful method for creating the illusion of progress This quote by the Roman Caius Petronius in AD 66 illustrates the dilemma for Internal Audit. Internal Audit has seemingly attempted a number of changes in approach over the years, but have any made a real difference? Is Internal Audit seen as the ‘White Knight’ charging in full armour, past cheering throngs of well-wishers to rescue the damsel in distress or the ‘Lady with the Lamp’, splendid and serene, tending to the ranks of wounded in the Crimean War without a thought for her personal well-being. Probably not. It is more likely that an auditor may be seen, to use the old joke, as the team that comes in after the battle and bayonets the wounded. The role still has somewhat of an identity crisis. Risk-based audit offers some, if not all, of the solutions. In the following chart...
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