IN AN EFFORT TO IMPROVE THE TRANSPARENCY of the client-auditor relationship, the Securities and Exchange Commission since 2001 has required firms to disclose the fees they pay to their external auditors
for audit and non-audit services.
Some of the more harrowing challenges include measuring the effectiveness of internal and external auditors
; ensuring a corporate code of ethics; appointing qualified and independent committee members; ensuring the integrity of financial statements; and providing for effective feedback from stakeholders.
Years ago, internal and external auditors
using Generally Accepted Accounting Principles, or GAAP, limited the range of "creative" reporting.
Bank, its external auditors
, and APRA meet annually to discuss any issues arising from reports of the external auditors
CPAs involved with an entity's internal control assessment process--either as part of the management team or as a consultant to management--will learn how management teams can and cannot work with their external auditors
to successfully comply with SOX 404.
of corporations must also provide an annual opinion on the reliability of the control representations made by the companies.
Different types of control mechanisms (e.g., internal auditors, professionally certified accounting personnel, boards, audit committees, external auditors
) are available for management's use.
have given Nuneaton and Bedworth Borough Council a clean bill of health for the way the authority's employees and councillors conduct themselves.
Follow-up by internal auditors--A process by which they determine the adequacy, effectiveness, and timeliness of actions taken by management on reported issues and recommendations, including relevant findings made by external auditors
The company's external auditors
are responsible for certifying the correctness of the financial statements.
Backing has been given to a report recommending that audit firms should not undertake internal audit activities where they are acting as external auditors
The guide suggests that community colleges use an audit committee, which is a liaison between the full board, management, and the internal and external auditors
. The four critical elements of procurement practices for audit services are: (1) competition; (2) solicitation; (3) technical evaluation; and (4) written agreements.