ACC 544 Week 3 Internal Control Evaluation Checklist

May 8th, 2015
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ACC 544 Week 3 Internal Control Evaluation Checklist

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Recommendation Brief for an Internal AuditorAn internal auditor certifies a company's financial statements are timely, relevant, and reliable. According to the American Accounting Association (1973), "Auditing is a systematic process of objectivity obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between the assertions and established criteria and communicating the results to interested users." Internal auditing assists a company minimize business risks by satisfying the demand of timely, relevant, and reliable information. The following are four environmental conditions that increase user demand for relevant and reliable information: (1) Complexity, (2) Remoteness, (3) Time sensitivity, and (4) Consequences.ComplexityCurrently, transactions and events are far more complex, in a way that decision makers and investors do not have the expertise to handle them. However, a professional such as an internal auditor is trained to accumulate, gather, and sum up the crucial operating information on his or her own. An internal auditor has the expertise to break down the complex transactions and events while making that information more understandable for the decision making process.RemotenessDecision makers and potential partners are often separated by distance, time, and a lack of expertise. Depending on the distance and time, investors cannot continually check up on

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