A client has an out-of-control system. A recommendation has been made to hire an internal accountant.
Write a recommendation brief of no more than 700 words for the client, justifying the benefits of using an internal auditor. Conclude your recommendation by referring a person for the job based on their background. Explain how the background benefits the client.
Recommendation Brief for an Internal Accountant
The current company system is out of control and steps need to be taken to regain system control. Internal control is vital to improve an organization’s operation efficiency and effectiveness, financial reporting reliability, and law and regulation compliance (COSO, 1992). To assist in achieving this internal control management can hire an internal accountant to conduct internal audits. An internal audit is a process that offers a systematic approach to evaluate and improve a company’s risk management, controls, and processes. “The services provided by internal auditors include (1) financial audits of financial reports and accounting control systems, (2) compliance audits that ensure conformity with company polices, plans, and procedures and with laws and regulations, (3) operational audits that evaluate the economy and efficiency of business process, (4) audits of effectiveness in achieving program results in comparison to established objective and goals” (IIA Standards 2110 and 2210). An internal auditor along with management would develop an evaluation plan and document the current control system in place. The auditor would evaluate the design and effectiveness of the controls and pinpoint any control deficiencies that exist. These deficiencies are further evaluated for causes and possible correction methods. At the conclusion of the audit the auditor will write management an audit recommendation to address the control system and make correction recommendations to...