This paper discusses the problem of internal controls and conflicts of interest in internal auditing.
Written in 2004; 678 words; 2 sources; APA; $ 23.95
Paper Summary:
This paper explains that a conflict of interest arises when independent and internal auditors, who check the design of a company's internal control system, also help to construct it. The author points out that the Sarbanes-Oxley Act was designed to provide checks of independence for public accountants who perform audits on publicly traded companies.
From the Paper:
"An accounting system is only accurate to the extent that it is used properly. The management of a company is charged with designing the accounting system and developing an environment in which the system will be used consistently and correctly. Internal controls are the management policies implemented to assure that the information coming from the accounting system reflects the actual transactions of the company. There are two prerequisites to implementing internal control techniques. One is proper management attitude. Unless the management of ..."
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