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NCJ Number: 66844 Find in a Library
Title: EMERGING RESPONSIBILITY OF THE INTERNAL AUDITOR
Journal: INTERNAL AUDITOR  Volume:35  Issue:5  Dated:(OCTOBER 1978)  Pages:45-52
Author(s): H M WILLIAMS
Corporate Author: Institute of Internal Auditors, Inc
United States of America
Date Published: 1978
Page Count: 8
Sponsoring Agency: Institute of Internal Auditors, Inc
Altamonte Springs, FL 32701
Format: Article
Language: English
Country: United States of America
Annotation: THE FUTURE EXTENDED FUNCTIONS OF THE INTERNAL AUDITOR ARE DESCRIBED.
Abstract: THE REPORT OF THE U.S. SENATE SUBCOMMITTEE ON REPORTS, ACCOUNTING AND MANAGEMENT NOTED THAT INTERNAL AUDITORS WORKING WITHIN CORPORATION 'CAN SERVE AN IMPORTANT FUNCTION IN PROMOTING CORPORATE ACCOUNTABILITY, AS WELL AS EFFICIENCY.' THE INSTITUTE OF INTERNAL AUDITORS, A PROFESSIONAL ASSOCIATION, CONFIRMED THE INCREASED PROFESSIONALISM AND RESPONSIBILITY OF INTERNAL AUDITORS BY ISSUING STANDARDS FOR THE PROFESSIONAL PRACTICE OF INTERNAL AUDITING. THE STANDARDS REQUIRE THE CERTIFIED INTERNAL AUDITOR EXAMINATION, AND BY ENCOURAGING CONTINUING EDUCATION FOR MAINTAINING THE CREDENTIALS. IN ADDITION TO THE TRADITIONAL OPERATIONAL AUDITING, DIRECT COMMUNICATION WITH THE BOARD OF DIRECTORS WILL BE AN IMPORTANT AUDITOR DUTY. TO MAINTAIN HIS INDEPENDENCE, THE AUDITOR SHOULD ENCOURAGE HIS CORPORATION TO ESTABLISH AN AUDITING COMMITTEE OF INDEPENDENT OUTSIDE DIRECTORS AND TO ASSURE THAT THE DIRECTORS ARE RESPONSIBLE TO SOMEONE IN MANAGEMENT WITH SUFFICIENT AUTHORITY TO TAKE THE REQUIRED ACTION. AUDITING COMMITTEES AND OTHERS WILL BE NEEDING SUBSTANTIAL ASSISTANCE IN COMPLYING WITH THE 'FOREIGN CORRUPT PRACTICES ACT OF 1977.' THIS ACT MAKES IT GENERALLY UNLAWFUL TO BRIBE FOREIGN GOVERNMENT OFFICIALS AND REQUIRES THE MAINTENANCE OF BOOKS, RECORDS, AND AN ADEQUATE SYSTEM OF INTERNAL ACCOUNTING CONTROL BY PUBLIC COMPANIES. WITHIN THE FRAMEWORK OF THE LAW, AUDITORS WILL SAFEGUARD CORPORATE ASSETS FROM LOSS, EXECUTE TRANSACTIONS IN ACCORDANCE WITH MANAGEMENT AUTHORIZATION, AND PERIODICALLY COMPARE ASSETS RECORDED ON THE BOOKS WITH ASSETS ACTUALLY PRESENT. A FINAL TASK OF THE INTERNAL AUDITOR IS TO WORK IN CLOSE COLLABORATION WITH INDEPENDENT AUDITORS, SINCE THIS AUDITOR IS THE PERSON MOST FAMILIAR WITH THE COMPANY'S FINANCIAL SITUATION. (SAJ)
Index Term(s): Auditing standards; Audits; Corruption of public officials; Records; White collar crime
To cite this abstract, use the following link:
http://www.ncjrs.gov/App/publications/abstract.aspx?ID=66844

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