Management and Organizational Studies 4464A/B Chapter 1: chapter 1 notes

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 4464A/B
• Professor: Muhammad Shuja

Document Summary

Levels of service include examination, review and application of agreed-upon procedures. Internal auditing an independent appraisal function established within a firm to examine and evaluate its activities as a service to the firm. Usually done by auditors who work for the firm who report to the executive mgmt or audit committee of the board of directors. The characteristic that distinguishes external from internal auditors is their respective constituencies external auditors represent outsiders whereas internal auditors represent the interests of the firm. Internal auditors may work with external auditors in performing parts of an attest audit in order to achieve audit efficiency and reduce audit fees. An internal auditor s independence is compromised if they report directly to the controller if this occurs, external auditors are prohibited to rely on evidence provided by internal auditors. The objective of a fraud audit is to investigate anomalies and gather evidence of fraud that may lead to a criminal conviction.