OBJECTIVES AND PHASES OF OPERATIONAL AUDITS
WRITTEN ASSIGNMENT WEEK 2
Read the case study from the University of Richmond about Phase in Internal Auditing.
(1) What is the significance of appointing the right audit staff members?
(2) At what phase when do audit teams hire staff members?
Submit a 2-3 pages case analysis, (excluding the title page and reference page) double-spaced in Times New Roman font which is no greater than 12-points in size. Paper and all citations should be in APA format. Send it to maggrabillo@rtu.edu.ph
After sending through email, kindly post in rich text format your case analysis by commenting in this post.
Deadline for accomplishment: October 17, 2021
This comment has been removed by the author.
ReplyDeleteDizon, Mark Raven R.
ReplyDeleteCBET-501A
(1) What is the significance of appointing the right audit staff members?
- The primary purpose of a company's audit committee is to provide oversight of the financial reporting process, the audit process, the company's system of internal controls and compliance with laws and regulations. The audit committee can expect to review significant accounting and reporting issues and recent professional and regulatory pronouncements to understand the potential impact on financial statements. An understanding of how management develops internal interim financial information is necessary to assess whether reports are complete and accurate. The committee reviews the results of an audit with management and external auditors, including matters required to be communicated to the committee under generally accepted auditing standards. Controls over financial reporting, information technology security and operational matters fall under the purview of the committee. The audit committee is responsible for the appointment, compensation and oversight of the work of the auditor. As such, CPAs report directly to the audit committee, not management.
Reference:
United States, & LexisNexis. (2002). The Sarbanes-Oxley Act of 2002: With analysis. LexisNexis/Matthew Bender.
(2) At what phase when do audit teams hire staff members?
- Selection Phase Internal Audit conducts a University-wide risk assessment near the end of each calendar year. We develop the audit plan for the subsequent year based on the results of this assessment and the department’s available resources. The Chancellor and the Fiscal Affairs and Audit Committee of the Kansas Board of Regents review the audit plan before it is executed. Selecting audit team members is an important part of the preparation stage. The overall responsibility for the selection of team members rests with the audit team leader. However, the audit team as a whole should be part of the process of evaluating the combined skills and experience of the team and whether they are appropriate to perform the engagement. As per the requirements of Division 2.2 of the NGER Audit Determination, the audit team leader must ensure that the members of the audit team have between them the knowledge, skills and availability required to satisfactorily prepare for and carry out the audit and prepare the audit report. In order to cover the necessary skills and expertise, audit teams are typically multidisciplinary and may include assurance practitioners, engineers, environmental scientists and financial, legal or corporate experts. Where significant deficiencies in skills or experience are identified, and cannot be rectified through internal resourcing, the audit team may need to invite an expert from outside its organisation into the team. The expert is then part of the audit team and bound by the same requirements as the other audit team members under the NGER Audit Determination. The audit team leader will need to consider whether the team has sufficient supporting resources—such as time, equipment and access to management and key personnel—to complete the engagement.
References:
https://markgrabillo.blogspot.com/2021/10/operational-audit-what-are-its-phases.html
Selection of audit team members. (n.d.). Clean Energy Regulator Clean Energy Regulator. https://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
(1) What is the significance of appointing the right audit staff members?
ReplyDeleteInternal auditing is an organization's independent assessment activity that examines accounting, financial, and other operations as a basis for providing management with services. It is a type of managerial control that measures and evaluates the effectiveness of other controls. As a result, the internal auditor should be concerned with any aspect of business activity where he may assist management (Miller, 1957 p. 3). With this, we can conclude that it is important to appoint the right audit staff members. They also play a vital role in attaining the objectives of the organization.
The significance of appointing the right audit staff members is they recognize effective operations auditing. "Management gets things done through people," according to effective operations auditing. As a result, a positive attitude or enthusiastic "team play" is required. The accepted goal is future improvement, not retaliation for previous errors. The auditor offers recommendations and ideas because he is a member of the staff; top management and local management make the decisions. In its purest form, operations auditing is carried out by capable and imaginative individuals who are committed to the overall improvement of the firm (Miller, 1957 p. 11-12).
(2) At what phase when do audit teams hire staff members?
Although each audit process is unique, most engagements follow a similar pattern and consist of four stages. Planning, Fieldwork, Audit Report and Follow-up Review. Audits, like any other unique project, necessitate devoting a certain amount of time from your department's staff. One of the main goals is to keep this time to a minimum and avoid disrupting ongoing activity. The auditor notifies the client of the audit, discusses the scope and objectives of the examination with organization management in a formal meeting, gathers information on important processes, evaluates existing controls, and plans the remaining audit steps during the planning portion of the audit (Chicago State University, n.d.).
In the planning phase, the opening conference will take place. This is where the Internal Audit process is discussed, as well as the plan for completing the audit. The client describes the unit or system to be examined, the organization, available resources, and other pertinent information during this discussion. The internal auditor meets with the senior officer in charge of the unit in question, as well as any other staff members he or she decides to include (Chicago State University, n.d.). The selection of audit team members is a crucial aspect of the planning stage.
REFERENCES
Miller, R.W. (1957, August). Operations Auditing A Study of the Newest Phase of Internal Auditing [Master’s Thesis, The University of Richmond]. scholarship.richmond.edu https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses
Chicago State University. (n.d.). Audit Process. https://www.csu.edu/internalaudit/auditprocess.htm
-Jennalyn P. Batjer (2019-101439)
1. What is the significance of appointing the right audit staff members?
ReplyDeleteAn audit team must be made up of the appropriate people with the proper mindset and necessary experience to be successful. While there is no standard size for an audit team, it is generally comprised of at least three persons, all of whom should preferably be independent. It is important for the audit team members to have the ability to approach tasks with an analytical thinking and a strong sense of professional skepticism. There may be times when the audit team need to question the management team and keep them accountable, which can lead to unwanted circumstances. To that reason, it is typically not a good idea to select audit staff members who are hesitant to have difficult talks because of their connection with management.
Furthermore, members of the audit team must be dedicated to carrying out their duties thoroughly and adequately under all situations. Members must be competent to make their own decisions without being excessively influenced by management or personal financial interests that might impair their capacity to carry out their duties. The financial reporting function, as well as the communication of such information to internal and external users, must be fair, transparent, and complete. It is important that the company's team does not involve people or individuals who have a close relationship with the company and/or its employees. It is necessary that audit team members must be unbiased or objective and act as an intermediary between management, external auditors, and investors. (CBIZ MHM, 2018)
2. At what phase when do audit teams hire staff members?
The hiring of audit staff members happens during the selection phase. At this phase, qualified auditors will be chosen and new audit staff members will be hired to join the company's audit team. Then, after the audit team members were completed, the internal audit will develop an audit plan for the following year based on the findings of the assessment from the current year and the resources of the firm’s department.
In addition, the selection of audit team members is an important element of the preparation stage of auditing. The audit team leader has overall responsibility for team members’ selection. However, the audit team as a whole should be included in the process of evaluating the team's overall abilities and expertise and if they are qualified to conduct the job. Furthermore, the audit team leader must assure that the audit team members have the necessary expertise, abilities, and availability to adequately prepare for and carry out the audit, as well as write the audit report. Audit teams are generally interdisciplinary in order to cover the essential skills and knowledge. They may comprise assurance practitioners, engineers, environmental scientists, and financial, legal, or business specialists. However, if substantial shortfalls in skills or expertise are discovered and cannot be remedied through internal resourcing, the audit team may need to bring in an expert from outside the company. The expert becomes a member of the audit team and is subject to the same standards as the other audit team members. The audit team leader must assess whether the team has enough supporting resources to accomplish the engagement, such as time, equipment, and access to management and key individuals (Clean Energy Regulator, n.d.).
References:
CBIZ MHM. (2018, May 11). Characteristics of an Effective Audit Committee. https://www.mhmcpa.com/insights/article/characteristics-of-an-effective-audit-committee-1
Clean Energy Regulator. (n.d.). Selection of audit team members Accessed October 12, 2021. http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
-Angelika D. Francia (2019-101440)
(1) What is the significance of appointing the right audit staff members?
ReplyDeleteIt is imperative for a company to hire competent and responsible audit staff members because these people will aid the local government to execute its governance and oversee their duties and obligations (DLGSC, 2021). In order to carry out whichever work is needed to form an opinion, the staff members must be properly selected. The work being done by the audit staff members require so much time and effort. Only capable and knowledgeable in the field of auditing would be able to do such duties and responsibilities appointed to auditors. Some of these tasks are reviewing the effectivity rate of the business plans, evaluating internal systems for identifying and controlling material operational hazards in compliance with local government's standards, and screening to see if fraud and misconduct risks have been recognized, analyzed, and evaluated, as well as whether a suitable treatment plan has been developed and publicized. According to Miller (1957), a qualified internal auditing personnel with a wide variety of technical abilities and practical experience is necessary to properly conduct and assess reports. The "most qualified employees" are assigned to the internal auditing program in order to: strengthen their business background, enhance their business knowledge, develop their initiative judgment, and widen their awareness of the corporate auditing difficulties (Knight, 1956).
(2) At what phase do audit teams hire staff members?
Obviously to be able to start with the whole internal auditing process, you need to have a team of leading skillful and competent members who will carry out the important tasks of auditing. The first phase which is the selection phase is when the audit teams will start the process of hiring the staff members. Hiring and selecting the members of the team is crucial to the success of achieving and reaching the company’s goals and objectives. This is why this process must be taken seriously and objectively to be able to decide on the right people to entrust the future of the company. The staff members are significant to the company as they have the roles and responsibilities of identifying critical risk, operational hazards and control indicators for the audit areas that have been allocated, developing risk management suggestions, solutions, and measures, reviewing the procurement framework of the local government, with a concentration on the credibility and openness of policies and procedures/processes, as well as if they are being followed, and analyzing and modifying internal controls, operational, and administrative policies and procedures.
References:
DLGSC. (2021). The Appointment, Function and Responsibilities of Audit Committees. https://www.dlgsc.wa.gov.au/department/publications/publication/the-appointment-function-and-responsibilities-of-audit-committees
Miller, R. (1957). Operations Auditing, a Study of the Newest Phase of Internal Auditing. University of Richmond, Virginia.
PATRICIA DENISE P. LEYCO (2019-101438)
1. What is the significance of appointing the right audit staff members?
ReplyDeleteSelecting audit team members is an important part of the preparation stage. Institute of Internal Auditors conducted a poll in 1953 to rate the factors that considered to be the most important for a successful internal auditing. According to representative members of the Institute whom the respondents of the said poll, the number 1 factor to consider is competency and characteristics of staff members. This only show how staffs contribute major success in internal auditing of every organization. It is exceptionally significant to appoint the right audit staff individuals who has experience, proficient capability, constructive reasoning capacity, deserve admiration by an explanation of decency, carefulness and speed, capacity to think as far as the executives at all levels, staff who avoid superior attitude, and the capacity to communicate thoughts clearly to specific audience. Risks and uncertainties are inevitable so that having qualified audit staff members will help the organization to become competitive and manage to mitigate those risks. Through these characteristics and skills, the management will be able to accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. In conclusion, Organizations should establish goals that drive their direction, prioritize the allocation of resources, give employees a sense of mission, and help the organization’s vision become a reality.
2. At what phase when do audit teams hire staff members?
Hiring staff must be done before performing the actual audit which executes during fieldwork. Planning phase is when audit teams hire staff members. It takes place the process of recruiting an auditor with sufficient treasury experience who can then become the in-house resource for future reviews. During this phase, the audit team including the staff member will perform the following, distribute audit notification, conduct pre-audit meeting, interview department personnel, review policies and procedures, understand and document the business processes, perform risk assessment, prepare a detailed audit program, and prepare audit budget. Audit staff must be present while designing each plans to properly move to the next phase which is fieldwork where they will execute the plan.
References:
Hernan, M. (2017). Operational Auditing. CRC Press.
Russell W.M. (1957). Operation auditing, A study of the newest phase of internal auditing.
Wayne State University (2021). Internal Audit Process. https://internalaudit.wayne.edu/process
AIRON NICOLE T. JADRAQUE
ReplyDeleteCBET-01-501A
(2019-101826)
Significance of Appointing Right Audit Staff Members
It is very important to have the right set of people or professionals that will work on specific tasks, not only to simply accomplish the said work but to finish it in an exceptional and in a well-thought-out manner. The quality of work can be measured by just looking up on or judging the workmanship of the person or individual that is working on it. An employee with a strong work ethics and professionalism will likely perform better in an organization or company compared to other standard workers.
A strong work ethic is an important part of being successful in your career. Work ethic is a set of values based on the ideals of discipline and hard work. Building a strong work ethic will allow a person to train themselves so that hard work is almost automatic. Forming good habits such as focusing, staying motivated, finishing tasks immediately, and more helps to create a good work ethic that will impress employers ("Performance Tips: Developing a Strong Work Ethic", n.d.).
Professionalism is a powerful quality. It allows you to fulfill your role to the best of your ability. It helps you to impress and inspire others. And it gives you a deep sense of satisfaction and self-worth. Professionalism involves consistently achieving high standards, both visibly and "behind the scenes" – whatever your role or profession (Anonymous, n.d.).
In line with this, the advantage of having a right audit staff members in a company will likely boost the efficiency and effectiveness of the whole administration or organization because the appointed worker met all the crucial qualities and capabilities of being an auditor member. An audit committee plays a key role in assisting a local government to fulfil its governance and oversight responsibilities in relation to financial reporting, internal control structure, risk management systems, legislative compliance, ethical accountability and the internal and external audit functions. According to Miller, R. W. (1957), there must be a competent internal auditing staff which represents a wide range of technical abilities and practical experience. Those in supervisory capacities should possess superior financial and "management" auditing skills and broad business experience which are utilized to review staff members' work; actively train junior auditors; and plan and coordinate the work of the internal auditing group. Another personal characteristic of great importance that must be present is a broadness of background that enables them to look at operations from an overall management viewpoint. Imagination, initiative, an inquiring mind, and commonsense on the part of auditors are vital to the success of operations auditing; without them the audit merely a verification of mathematical balances.
Phase where Audit Teams Hire Staff Members
ReplyDeleteSelecting audit team members is an important part of the preparation stage according to "Clean Energy Regulator", (n.d.). The audit leader is the one who is responsible for the selection of team members However, the audit team as a whole should be part of the process of evaluating the combined skills and experience of the team and whether they are appropriate to perform the engagement. It is also said that it is the responsibility of an audit leader to ensure that the members of the audit team have between them the knowledge, skills and availability required to satisfactorily prepare for and carry out the audit and prepare the audit report.
I guess the reason behind why it is in the preparation stage or in the beginning is because to prepare everyone, the team and other individuals, for the whole process of auditing reports or auditing work that should be done subsequently. They need more professionals so that the time spent on working will be reduced but at the same time the quality of work is still admirable.
References List:
Performance Tips: Developing a Strong Work Ethic. Cornerstone. Retrieved October 13, 2021, from
https://www.cornerstoneondemand.com/performance-tips-developing-strong-work-ethic#:~:text=A%20strong%20work%20ethic%20is,being%20successful%20in%20your%20career.&text=Forming%20good%20habits%20such%20as,ethic%20that%20will%20impress%20employers
Anonymous. (n.d.). Professionalism: Meeting the Standards That Matter. Mindtools. https://www.mindtools.com/pages/article/professionalism.html
Assessing the Size and Scope of Labor Restructuring. PPIAF. Retrieved 0ctober 13, 2021, from https://ppiaf.org/sites/ppiaf.org/files/documents/toolkits/LaborToolkit/Toolkit/module3/staff_audits.html
Miller, R. W. (1957). Operations Auditing: A Study of the Newest Phase of Internal Auditing [Master's Theses]. The University of Richmond.
Selection of Audit Team Members. Clean Energy Regulator. Retrieved October 13, 2021, from
http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
AIRON NICOLE JADRAQUE 2019-101826
The Significance of Appointing the Right Audit Staff Members
ReplyDeleteThe function of the internal auditor is changing in many organizations. It is crucial to look for audit staff members who transcend in determining patterns and data trends and create relevant and sound data by suggesting recommendations and solutions that will help to improve the overall efficiency and effectiveness of the organization. Now, the question here is how do we determine if the appointed audit staff members of an organization are competent enough to lead the company to its improvement and development.
According to the thesis produced by Russell William Miller in 1957, part of the conclusion of this paper is "There must be a competent internal auditing staff member which represents a wide range of technical abilities and practical experience." For the internal auditor to be called a proficient one, he or she must have depth understanding of different accounting methods and auditing standards. Also, they must know a wide range of various internal audit topics such as risk-based auditing, types of control and project management. The management assumed that an internal auditor already possessed these technical abilities so they expect that these skills will be applied effectively in their audit works. When it comes to practical experience, the internal auditor follows an audit phase to ensure the best quality of the audit report. During the planning phase, they gather documents and information from previous audits and preliminary statements from other parties involved in the audit. Moreover, they have to identify the scope and objectives of the audit they will conduct. While in the fieldwork phase, this is the stage where they demonstrate their critical thinking and business understanding skills as they will assess the business operation and internal processes of the organization.
Another conclusion by Miller in his case study is "Those in supervisory capacities should possess superior "financial" and "management" auditing skill and broad business experience which are utilized to review staff members work; actively train junior auditors, and plan and coordinate the work of the internal auditing group." The relevance of assigning audit staff members full of competent and efficient individuals will be reflected in the overall performance of the organization. In fact, conducting an audit have proven to become a vital component of the success of a company. Thus, if an organization failed to assessed and manage certain risks effectively, then the worst-case scenario is it may lead to the downfall of the business.
STEPHANIE BALAYSOCHE (CBET-01-501A)
The Phase When Audit Teams Hire Staff Members
ReplyDeleteAn audit team is an independent function in an organization that helps management achieve its objectives by evaluating the risk and control environment (Wright, 2019). The audit team must compose of competent and highly skilled members to have a higher chance of achieving the set objectives of the team and organization.
One of the most significant parts of the preparation stage or planning phase is the selection of audit staff members for the audit team. Part of the role of the audit team leaders is to choose who among the individuals are qualified to be part of the audit team. They need to have an intensive selection so that they can give an assurance to the management that the chosen members have the sufficient capability, knowledge and skills to conduct effective audit related works. Furthermore, audit team leaders must fully understand the necessary characteristics and traits of an effective audit team and some bad habits that must need to avoid by the team.
Conclusion
To sum up, appointing the right audit staff members contributes to the betterment of the organization as a whole. Their job to conduct an audit in the operations of the business is indeed an opportunity for the organization to know where exactly they need further improvement or if there is a need for a modification for some company policies or procedures. Most especially, for the company to become more prepared for the potential risks that might occur some future time.
REFERENCES:
Miller, R. (1957). Operations auditing, a study of the newest phase of internal auditing (thesis).
Wright, A. (2019, May 1). 5 traits of successful audit teams. AuditBoard. Retrieved from https://www.auditboard.com/blog/5-traits-of-successful-audit-teams/.
STEPHANIE BALAYSOCHE (CBET-01-501A)
This comment has been removed by the author.
ReplyDeleteThe Vital Role of Human Labor in Auditing (1/2)
ReplyDeleteDue to the vast and dynamic changes occurring in our current digital world, almost every single thing has already been digitized. From the way we communicate to the way our body revolves around the day we completely have a touch of technology. We really cannot deny the fact that maybe in the future time technology might take over the whole world. Thus, how does this affect human labor? How does it affect the business staffing? Will there be an automated machine that could replace a human mind especially in terms of analyzing and interpreting organizational goals and objectives? Will there become a time that internal auditors will then be obsolete due to the rapid changes that the world is experiencing?
The main role of an internal audit is to add value and improve an organization's operation. Such audit crafts should be in accordance with how IIA defines it as an independent, objective, and assurance activity which are designed to achieve the objectives of the organization. There are several factors that contribute to the success of the main goal but the most vital factor of its attainment is none other than the people who will work on the organization’s internal auditing. Human labor is indeed necessary to commence and to finish the auditing process. Based on the research study executed by Prawitt (2003), prior to hiring or beginning any type of internal audit staffing, organizations must determine human capital strategy. The human capital strategy is a process of assessing internal auditor aspirants which is a case to case basis because it would still depend on the company on how they hire or staff aspirants. With that being said, hiring of fresh graduates or experienced usually occur before the start of the auditing phase but there are times when audit hiring and staffing occur after the planning phase due to the idea that fieldwork will definitely be a lengthy and time-consuming phase of internal auditing. Furthermore, based on the study of Miller (1957), there are several qualifications that need to be met for the succession of an auditing process. One of which includes the depth of knowledge and expertise of a person in both financial and management skills. It emphasizes the concept of being well-known to the job that they are doing because it will surely be a waste if a hired person does not fit the work that the person needs to execute. Also, the organization’s management must also put importance on giving support to the internal auditing staff and team. This in particular gives importance to the good relationship between the management and the internal auditing committee, especially the relationship of staff and team members who work on the internal audit. In addition, it was also stated that the internal auditing group should also understand the organization’s primary purpose so that they will not get lost along the way and it will help them become more goal-driven and efficient in their work. Lastly, internal audit staff members must also bear in their mind the responsibilities that they have in order for them to work with due care and with independence on their side. Thus, being part of an organization’s internal audit staff will really be based on the skillset and the knowledge an aspirant should have because this will definitely help the organization to make use of its human labor.
The Vital Role of Human Labor in Auditing (2/2)
ReplyDeleteAppointment of staff audit members shall be very vital because this will have a big impact on the success of the auditing process. According to Miller (1957) assigning a role to the audit staff member will significantly affect how the internal audit method obtains timely and unbiased report. These staff members, especially those with higher positions should be required to have a higher degree of understanding to internal auditing as well as to the organization since they have a great responsibility on their shoulders. Hence, aside from the essential or fundamental qualification that an internal audit member shall possess including the understanding and knowledge about the work, independence, and objectivity. A staff member should also be technically qualifying to scan and trace complex accounting and statistical data of the organization (Miller, 1957). They also need to have a broader experience in terms of observing and analyzing significant principles and standards in an overall management viewpoint which will definitely provide a holistic approach on the internal audit. Staff members should also have the highest degree of impartiality and independence toward their work so that a concrete and unbiased report will be the craft that will be provided to the organization. And lastly, their professionalism must also show from the start of the work up until the auditing phase ended. These are just some of the qualities and qualifications a staff member of an auditing group shall possess in order for each member to follow.
To conclude, human labor is still significant up to this day since a lot of work, especially jobs with analytical needs. It was explained that in the field of auditing, auditors are one of the vital factors in the success of the internal audit whereby each staff member shall possess standard qualification in order for them to provide ample amount of contribution in the attainment of the objective of the organization. The analytical and interpretational skills of a human internal auditor which showcases experience and in-depth knowledge on internal auditing is truly incomparable to any existing technology that we currently have. As Nair (2019) stated in his article that he is not afraid of the chance of losing his job due to the AI robot but rather he is afraid that he may not keep up to the massive changes that the world is facing right now. Hence, human labor may be diminished but it will not be removed as long as humans are keeping up with the vast and dynamic changes.
References
Miller, R. W. (1957). Operations auditing, a study of the newest phase of Inrenal Auditing. Virginia.
Murdock, H. (2017). Operational Auditing. Florida: CRC Press.
Nair, B. (2019, April 24). Linkedin. Retrieved October 9, 2020, from https://www.linkedin.com/pulse/when-robots-replace-internal-auditors-biju-nair
Prawitt, D. (2003). Managing Internal Audit Function. Florida.
Auditors aim to provide efficient, unbiased, and effective judgment and recommendations that will help the business to reach its goals towards success. The audit committee's major responsibility is to oversee the financial reporting process, the audit process, the company's internal controls system, and compliance with laws and regulations. To comprehend the potential impact on financial statements, the audit committee should expect to analyze important accounting and reporting concerns, as well as current professional and regulatory declarations. To determine if reports are thorough and accurate, you must first understand how management creates internal interim financial information. Separate meetings with external auditors are held by audit committees to examine issues that the committee or auditors believe should be discussed confidentially. In addition, the committee examines suggested audit methodologies and coordinates the audit effort with internal audit employees. When an internal audit function is established, the committee will review and approve the audit plan, examine the function's staffing and organization, and meet with internal auditors and management on a regular basis to discuss any issues that may develop. (CFA Institute, “Audit Committee Role & Responsibilities”). With regards to this matter, to provide a diverse range of competent perspective and judgment to the management that will arrive to the betterment of the company’s operation, it is really significant to choose the right people to do this job based on their experience and expertise.
ReplyDeleteOn the other hand, the selection of audit team members is a crucial aspect of the planning stage. This will be the pillar of the audit process.
According to Walldron (2015), audit team leader is ultimately responsible for the selection of team members. The audit team as a whole, should be included in the process of evaluating the team's combined talents and expertise, as well as whether they are qualified to undertake the engagement. Th audit team leader must make certain that all members of the audit team have the necessary knowledge, abilities, and availability to properly prepare for, conduct, and report on the audit from the very start of the planning. Audit teams are often diverse to cover the relevant skills and knowledge, and may comprise assurance practitioners, engineers, environmental scientists, and financial, legal, or business professionals. The audit team leader must examine whether the team has enough supporting resources to accomplish the engagement, such as time, equipment, and access to management and key employees.
While the method by which the expert is selected or hired is at the discretion of the audit team leader, once the expert is brought into the audit team, they become a full member of the team and are subject to the same independence, quality control, and conflict of interest requirements as the other audit team members. If the audit team is prepared and efficient from the very moment they plan the audit, it will surely be a success.
References:
Matt Walldron (2015), “Audit Committee Role & Responsibilities”, CFA Institute, Retrieved October 14,2021 from https://www.cfainstitute.org/en/advocacy/issues/audit-committee-role-practices#sort=%40pubbrowsedate%20descending
Clean Energy Regulator, “Selection of Audit Team Members”, Retrieved October 14,2021 from http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Au.dit%20determination%20handbook/Selection-of-audit-team-members.aspx
-Carlos, Leila Lauren M. 2019-101650
The auditing profession is one of the most challenging career paths in the Philippines. It requires the auditors to have professional skepticism and is expected to have a critical mind in assessing one's practice.
ReplyDeleteJust like what I have stated on my Written Assignment Week 1, the competition in this profession is relatively high since more and more aspirants are taking this path because of the opportunities they might obtain from it. Thus, to be an outstanding auditor, you should not only be a degree holder but rather possess essential skills; gain experiences; and earn achievements to have an advantage over other auditors.
"Significance of appointing the right audit staff members"
The success of a business is dependent on the competence of its workers. Employers preferred to hire someone who already has the experience and notable achievements so that the training phase would not require plenty of time and his/her skills would be beneficial to achieve the goals of the organization.
It is vital to appoint right audit staff members because the decision-making of the business owners will depend on the audited financial statements created by them in accordance with relevant policies and framework. By hiring competent and capable people, the mission of the enterprise will be achieved promptly. The operations will also be smooth sailing and mistakes would definitely be lessened because the auditors are experienced enough of their work responsibilities.
Consequently, to be labeled as the "right" audit staff member, you must be versatile and holistic to be able to compromise with different approaches or changes in the management. You should also know how to act and provide solutions to the problems, and is skilled of turning risks into opportunities. It is also essential that you know how to communicate and ask things because it is an implication that you are using your critical thinking skills rather than always accepting the information submitted by your team members.
"When to hire staff members?"
“Failing to plan is planning to fail” (Murdock, 2017), which only means that poor planning will result in inefficiency in auditing practices. The planning phase also encompasses the budgeting area of business wherein decision-makers are weighing the cost-benefit of an undertaking before actually doing it.
Hiring an employee requires a plan because employers should consider the cost of the salary; health insurance; employer's share on the government contribution; training costs; other expenses in employing a worker. With that in mind, the best time to hire a worker is when there is a demand for additional help because of unfinished works which current employees cannot fulfill anymore in taking into consideration the financial stability of the business. If the benefits of hiring a staff member outweigh the cost of hiring him/her then it is reasonable to add more employees. For instance, a competent staff member with numerous achievements and experiences is a good investment because he/she will be responsible of work and owners will surely trust his/her knowledge.
References:
• Murdock, H. (2017). Operational Auditing: Principles and Techniques for a Changing World. Accessed October 12, 2022. https://e-rtu.online/mod/resource/view.php?id=49853
• Griarte, L.R. (2021). Written Assignment Week 1
• Freshbooks. (n.d.) When To Hire New Employees: Smart Tips for Growing Your Small Business. Accessed October 12, 2021. https://www.freshbooks.com/hub/leadership/when-to-hire-new-employees
• Miller, R.W. (1957). Operations Auditing, a study of the newest phase of internal auditing. Accessed October 12, 2021. https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses
GUASIN, Jerick E.
ReplyDeleteCBET-01-503A
1) What is the significance of appointing the right audit staff members?
The job of the audit committee is to help gather in satisfying its administration and oversight obligations comparable to monetary announcing, inner control structure, hazard the board frameworks, interior and outside review capacities and moral responsibility. Moreover, they ought to fundamentally inspect the review and the executives' reports given by the external auditor (Department of Local Government, Sport and Cultural Industries, n.d.).
In order to appoint the right audit staff members there must be a criterion set by the company in which they should appoint someone that will give them their specific needs, they must also need to evaluate if the auditor can have jurisdiction in the company's operations. Next thing they should put into consideration - the experience someone has in the field - for it will be crucial, since the operations are brought into other sectors in a comparable size.
Overall, individuals from the audit committee should be committed to completing their obligations completely and satisfactorily under all circumstances. Individuals should be able to settle on their own choices without being unnecessarily affected by the executives or individual monetary interests that may disable their ability to complete their obligations. A portion of these undertakings are checking on the effectivity pace of the marketable strategies, assessing interior frameworks for distinguishing and controlling material functional perils in consistence with neighborhood government's norms, and screening to check whether misrepresentation and unfortunate behavior hazards have been perceived, dissected, and assessed, just as regardless of whether a reasonable treatment plan has been created and pitched.
2) At what phase when do audit teams hire staff members?
ReplyDeleteWe learned that there are several phases an audit is going to take before completion. According to SHRM (n.d.), an audit team is an association with understanding whether its HR rehearses help, frustrate or little affect its business objectives. The review additionally evaluates the aftereffects of the division's drives and gives a guide to vital changes. Reviews can likewise assist the association with accomplishing and keeping up with elite HR rehearses.
Hence, as per Chicago State University (n.d.), hiring of the audit team takes place in the planning phase. Furthermore, this is the place where the internal audit is examined, just as the arrangement or for finishing the review. The customer portrays the unit or framework to be analyzed, the association, accessible assets, and other appropriate data during this conversation. The internal audit team then meets with the senior official responsible for the unit being referred to, just as some other staff individuals the person in question chooses to incorporate.
In essence, the audit team plays a vital role in an organization, since they deal with interdisciplinary, thus must be competent and knowledgeable. The leader to be selected in this team must as well as necessary to assess the members he has for the team, a team with no support will surely fall no matter how strong the leader is - one is surely not enough to cover all the tasks required of them to do. That is supported by the claim of the Clean Energy Regulator that, in the event that significant shortages in abilities or aptitude are found and cannot be helped through interior resourcing, then the internal audit leader might have to get a specialist from outside the organization. The review group pioneer should evaluate whether the group has sufficient supporting assets to achieve the commitment, like time, gear, and admittance to the board and key people (n.d.).
References:
Chicago State University. (n.d.). Audit Process.
https://www.csu.edu/internalaudit/auditprocess.html
Clean Energy Regulator. (n.d.). Selection of audit team members Accessed October 14, 2021.
http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
Department of Local Government, Sport and Cultural Industries. (n.d.). The appointment, function and responsibilities of audit committees. DLGSC. Retrieved October 13, 2021, from:https://www.dlgsc.wa.gov.au/department/publications/publication/the-appointment-function-and-responsibilities-of-audit-committees
KPMG. (2019). Good practices for auditor appointment. Assets.KPMG.
https://assets.kpmg/content/dam/kpmg/sg/pdf/2019/05/Good-Practices-for-Auditor-Appointment.pdf
Miller, Russell William, "Operations auditing, a study of the newest phase of internal auditing" (1957). Master's Theses. Paper 792.
SHRM. (2021, July 13). Conducting Human Resource Audits.
https://www.shrm.org/resourcesandtools/tools-and samples/toolkits/pages/humanresourceaudits.aspx
Nombrado, Sean Lester / 2019-106902
ReplyDelete(1)An audit is significant because it lends credibility to a data set and assures shareholders that the accounting is accurate and fair. By analyzing the plan's internal control over financial reporting and detecting control deficiencies or plan operational errors, the audit may also assist plan management in improving and streamlining plan operations.
Staff audits provide an up-to-date workforce assessment and serve as the foundation for future benchmarking and workforce assessments. They also supply the essential database for accurate cost estimates of alternative severance and compensation methods and payment disbursement to workers. Furthermore, selecting the correct audit team members is critical in auditing. When negative findings are reported, the auditor's competency is the first to be called into doubt. Because they have varied abilities and their execution directly impacts the company's performance, these people are the backbone of an organization or corporation. For a successful audit, the auditor's independence from the plan and plan management is critical since it allows them to approach the audit with the required professional skepticism. Auditors' staff are essential because they are significant in terms of maintaining service levels and quality. It usually entails gauging individual employee technical and functional skills, highlighting critical individuals and organizations of workers whose knowledge, experience, and institutional memory are vital to the company's current effective operation, and highlighting the gap between today's skills and those required in the future through one of those form of needs assessment. An incomplete data or information, insufficient, or delayed audit report could result in the file being rejected and sanctions being enforced on you as the plan administrator; as a result, administrators should make auditor selection of utmost importance and exercise extreme caution at every phase of the design.
Nombrado, Sean Lester / 2019-106902
ReplyDelete(2)According to the study Miller that operations auditing can encompass the agency or organization as a whole. The scope or the depth examination work is primarily governed by the evaluation or the effectiveness of controls. Where adequate and effective powers have been exercised by management over its operations, comprehensive scrutiny is proportionately reduced.
There are many stages in operational auditing that are useful to the company. Operational audits are organized similarly to traditional audits, including planning, fieldwork, and reporting phases. These offer a straightforward, practical, and time-tested way to organize, carry out, and present operations outcomes. In my opinion, audit teams should hire staff members during the planning phase because the audit team is wholly accountable for team member selection. However, the audit team as a whole, on the other hand, should be considered when assessing the team's overall talents and knowledge and whether they are competent to execute the engagement. It is critical to ensure that members of the audit team have the appropriate expertise, skills, and availability to prepare for, conduct correctly, and report on the audit.
Chambers and Rand (2011) stated that operations auditors must maintain the management objectives for the operations under audit in mind at all times. The audit team must establish management's objectives early in the audit engagement planning process. Murdock (2016) claims that a large percentage of the population has unclear or unknown goals and that the programs and methods in which they operate also lack clear objectives. When there are objectives, there are typically few measures in place to assess their success. If management is uncertain of their goals and objectives, these objectives must be worked out with management before the audit engagement can proceed.
Furthermore, risk factors play an essential role in planning, particularly risk assessments. Risk factors are conditions and other variables that, when present or absent, either enhance or mitigate the underlying risk. Some factors raise the chance or impact of the underlying threats. In that situation, during the planning phase of any audit, decision-makers should identify the internal and external stakeholders involved and gather their opinion on their aims, threats, concerns, and plans for the examined region. As a result, the review will be more effective and valuable.
References:
Chamber & Rand. (2011). The Operational Auditing Handbook. Wiley Online Library. https://onlinelibrary.wiley.com/doi/book/10.1002/9781119991083
Miller. (1957). Operations auditing, a study of the newest phase of internal auditing. Richmond.Edu.https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses
Murdock, H. (2016). Operational Auditing: Principles and Techniques for a Changing World (Internal Audit and IT Audit) (1st ed.). Auerbach Publications.
(1/2)
ReplyDeleteThere is a major role that an audit committee has, which is, they are assisting company in relation to financial reporting, internal control structure, risk management systems, and the internal and external audit functions. Their primary purpose is to present an oversight of financial reporting process as well as the auditing process. The audit committee should analyze important accounting and reporting concerns, as well as current professional and regulatory declarations to comprehend the potential impact of it on financial statements. To evaluate whether reports are thorough and accurate, you must first understand how management creates internal interim financial information.
Appointing audit staff members is one of the crucial part in building an audit committee since this needs a lot of discussion on who will be the members that are qualified in the standards of upper positions. Thorough checking of the skills and capabilities of an auditors is required whenever they appoint audit staff members because they need people who have a quite excellent performance of an auditor.
It is significant to appoint a right audit staff members because they are the one of the branches of the company that will help to strengthen credibility with stakeholders. An audit staff members that communicates a message of independence, reliability and trust is one of the characteristics that the shareholders are looking for. They are the ones who can trust the sets of datas and financial statements of a company. They are also the one who provides some opinions that helps the company to have a better decision making. It also builds confidence among present and potential constituents, donors, creditors, and other stakeholders.
(2/2)
ReplyDeleteWith that, hiring of audit staff members happens during in the selection phase. The audit team leader is ultimately responsible for the selection of team members. The audit team as a whole, on the other hand, should be included in the process of evaluating the team's combined talents and expertise, as well as whether they are qualified to undertake the engagement. The hiring and selection of team members is critical so that this process must be taken seriously and objectively in order to decide the right people for the future of the company. The audit leaders need to assess the capabilities of the potentials audit staff members so that they can determine if that certain person is suitable to the characteristics and the goals they have as a team.
To determine that a certain person is qualified to the expectations of the audit leaders, they must see that person has enough knowledge and experience of the matter being audited. According to Clean Energy Regulator (n.d.), the lower the level of knowledge and experience, the higher the likelihood that an expert may be required in the team. The audit leader will evaluate the professional competence and objectivity of that person and obtain sufficient and appropriate evidence that the audit procedures to be performed by the expert are appropriate and address the identified audit risks.
Appointing, evaluating and rewarding an independent auditor is a critical task for review boards. It is subjective and varies from company to other company. In general, these procedures help the audit committee monitor the auditor's work and help ensure that the audit is successful. The independent auditor is responsible for conducting a high-quality audit; However, audit committees should carefully evaluate and review the work of the statutory auditor as part of their annual activity and take all necessary steps to support the quality and effectiveness of the statutory audit.
References:
AU 310 Appointment of the Independent Auditor. (n.d.). Default. Retrieved October 14, 2021, from https://pcaobus.org/oversight/standards/archived-standards/details/AU310
Audit Committee Role & Responsibilities. (n.d.). CFA Institute. Retrieved October 14, 2021, from https://www.cfainstitute.org/en/advocacy/issues/audit-committee-role-practices#sort=%40pubbrowsedate%20descending
Selection of audit team members. (n.d.). Clean Energy Regulator. Retrieved October 14, 2021, from http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
Miller R.W. (1957). “Operations Auditing: A study of the newest phase of internal auditing”. Master’s Thesis, University of Richmond. Scholarship Richmond. https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses
TAPIA, GIAN TRICIA B. 2019-103668 CBET 01-501A
ReplyDelete1. What is the significance of appointing the right audit staff members?
The major responsibility of the audit committee is to monitor and foresee carefully the financial reporting process, the audit process, the company's internal controls system, and compliance with laws and regulations. A firm must properly select right and trusted audit staff members with relevant knowledge and experiences to ensure the firm’s success. To comprehend the potential impact on financial statements, the audit committee should expect to analyze important accounting and reporting concerns, as well as current professional and regulatory declarations. To determine if reports are thorough and accurate, you must first understand how management creates internal interim financial information.
Right admission of people offers capabilities to execute remarkable qualities in accomplishing tasks. Ethically inclined and professional skepticism are deeply encouraged for making the work more relevant and necessary. The audit committee meets with management and external auditors to discuss the findings of an audit, including topics that must be presented to the committee under generally recognized auditing standards. The committee is responsible for financial reporting, information technology security, and operational concerns. Board members should be able to provide a variety of competent opinions based on their experience and skills; nonetheless, board members must be informed and fluent in finance and accounting terminology. The audit committee has a specific need for this.
2. At what phase when do audit teams hire staff members?
A professional audit process offers 5 phases which guarantee different procedures and processes. The selection phase will be the commencement of establishing the team, hiring staff members and so on. Hiring the right staff members will play a vital role in the auditing process. Objectives and goals of a firm must be attained properly so selecting the members can affect the result of the whole auditing process. This is really a serious matter for a company to undergo since the sake of the company lies on the effectiveness and efficacy of the operations auditor and the whole stakeholders of it. In this phase, internal auditing committee evaluates the company and does risk assessment which is very important because it is one of the reasons why we execute auditing. They are really appreciated since they are part and important for the company. They have the responsibility to be able to identify the potential issues, internal hazards, great risks, and many upcoming dangers that a firm might get along through time. Establishing the people who are involved in the whole internal auditing process are processed here before moving forward to the next phase which is the planning phase.
References:
Audit committee role & responsibilities. (n.d.). CFA Institute. Retrieved October 14, 2021, from https://www.cfainstitute.org/en/advocacy/issues/audit-committee-role-practices#sort=%40pubbrowsedate%20descending
Grabillo, M. A. (2021). Operational Audit: What are its Phases? Retrieved October 14, 2021, from https://markgrabillo.blogspot.com/2021/10/operational-audit-what-are-its-phases.html
Miller, R.W. (1957, August). Operations Auditing A Study of the Newest Phase of Internal Auditing [Master’s Thesis, The University of Richmond]. https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses
Colarina, Adrian Mark T.
2019-105709
CBET-01-501A
Rizal Technological University
ReplyDeleteBrgy. Malamig, Boni Avenue
City of Mandaluyong
Written Assignment:
Operational Audit
Dalmacion, Khyla Bernadette S.
CBET 01–501A
Professor Markie Grabillo
October 14, 2021
Appointing the right audit staff members are very important because of the reponsibilities that they carry within the company. The audit team reports to the organization's manager or partner. The preparation and maintenance of financial reports, the examination of profit and loss, the derivation of conclusions based on the reports, and the drafting of appropriate recommendations are all responsibilities of the audit staff member. To be successful in the field of auditing, you must first understand the primary tasks of the audit team. The audit staff is crucial in recognizing, prioritizing, and evaluating the risks that a company faces. Here is a detailed description of basic responsibilities of audit staff:
1. He should be able to manage the audits of the client’s financial statements with ease.
2. He should gain a thorough understanding of the firm's financial commitments.
3. Under the guidance of a senior, he should take on the task of completing numerous auditing operations using contemporary auditing principles and accounting methods.
4. To improve the team’s productivity, he should contact with clients and internal employees on a regular basis.
5. He should be well-versed in the company’s policies and processes. He should make certain that the audits he conducts are in accordance with the company’s policies and procedures.
6. He should keep the organization’s and client’s financial concerns completely secret.
Members of the audit team work in a typical office setting. Their weekly working hours are normally between forty and forty-five hours. During tax season at the end of the fiscal year, they may be required to work longer hours.
The career prospects for audit staff members are really bright and they have good chances of getting promoted to the managerial positions.
The selection of audit team members is a crucial aspect of the planning stage.
The audit team leader is ultimately responsible for the selection of team members. The audit team as a whole, on the other hand, should be included in the process of evaluating the team’s combined talents and expertise, as well as whether they are qualified to undertake the engagement.
Audit teams are often diverse to cover the relevant skills and knowledge, and may comprise assurance practitioners, engineers, environmental scientists, and financial, legal, or business professionals.
When severe deficits in skills or expertise are discovered that cannot be addressed through internal resourcing, the audit team may need to bring in an expert from outside the company. Under the NGER Audit Determination, the expert becomes a member of the audit team and is subject to the same requirements as the other audit team members.
The audit team leader must examine whether the team has enough supporting resources to accomplish the engagement, such as time, equipment, and access to management and key employees.
References:
Staff Responsibilities
https://www.bestsampleresume.com/job-descriptions/audit/audit-staff.html
Selection of audit team members
http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
Dalmacion, Khyla Bernadette S.
CBET 01-501A
2019-105708
1) What is the significance of appointing the right audit staff members?
ReplyDeleteKnowing who you are working with and their capability assures that proper execution of work will be observed and is efficient and effective. It is significant as any other job to appoint the right staff members to ensure reliable, quality, and professional work. Team members facilitate the strengthening of the effectiveness of the audit as they merge their knowledge and expertise (Owhoso et al., 2002).
Having the right audit staff will minimize the use of resources and time as is it will allow for acceleration and smooth performance since they have the expertise on the subject. Additionally, it will allow for a broader scope of the result as they will manage to assess even the humblest risks. Moreover, it is a must to equip your team with people or staff that can perform the task perfectly, which also improves the trust of management in the value of the findings. Also, it will minimize the costs as they will not spend more on the training as the staffs have plenty of knowledge and experience.
Operational auditing revolves around assessing the business operation with connection to its objective, which they evaluate if the business is doing a great job on its functioning and mitigating risks. Therefore the audit staff must be experienced and professional to succeed in helping the organization attain its best performance possible. Furthermore, it is unacceptable to appoint people that do not have the capacity and the required knowledge. Hence, the right audit staffs are a necessity.
2) At what phase when do audit teams hire staff members?
The audit teams hire staff members at the start of the process, which is the planning phase. Hiring the staff members at the planning phase will allow the merging of ideas crucial for preparing the entire method, which will result in efficient task fulfillment. The cooperation of the whole team in this phase will establish the working habit, which includes effective communication, excellent teamwork, greater synergy, and productivity.
The formation of the team at the beginning phase is vital as they will be working together during the entire process of the audit. Thus, as early as possible, the division of tasks is implemented, allowing smooth and effective functioning of the team. Furthermore, this phase requires participative practices to distinguish relevant activities, systems, people, and performance standards (Murdock, 2017).
Ensuring the best possible performance is their responsibility to provide the company with the corrective action for the risks assessment conducted, but impossible to achieve with fewer people. Quickly establishing the team enables the better execution of performance, thus, resulting in efficient and accurate output.
References
Miller, R, W. (1957). Operations auditing, a study of the newest phase of internal auditing. Retrieved https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses
Murdock, H. (2017). Operational Auditing: Principles and Techniques for a Changing World.
Owhoso, V. E., Messier, Jr., W. F., & Lynch, Jr., J. G. (2002). Error Detection by Industry Specialized Teams during Sequential Audit Review. Journal of Accounting Research, 40(3), 883-900.
DIZON, JAKE C. (2019-106975)
Drice, Arielle Jean G.
ReplyDelete1. What is the significance of appointing the right audit staff members?
According to SEC Chair Mary Jo White, “Effective audit committee oversight is essential to investor protection and the functioning of our capital markets.”
All local governments are required under the Local Government Act of 1995 (the Act) to form an audit committee. Financial reporting, internal control structure, risk management systems, legal compliance, ethical accountability, and internal and external audit activities are all areas where an internal auditors can help a local authority fulfill its administration and oversight responsibilities. The goal of this guideline is to help local governments set up and run a successful audit committee. Auditors can expect to assess important accounting and financial reporting concerns, as well as current professional and regulatory disclosures, to understand the applicable influence on financial statements. To comprehend the relevant effect on financial statements, the auditors should anticipate to analyze important accounting and financial reporting concerns, as well as recent professional and regulatory declarations. To decide if reports are accurate and understandable, you must first comprehend how management generates internal interim financial data. All of the members of an audit committee ought to be independent in order to prevent insiders from influencing the committee's work and oversight, as well as the work of the external auditors, independence is required.
Appointing audit staff members is an important component in making an audit committee. To be appointed as an auditor committee you must first have the ability and knowledge about auditing to facilitate the other team in different department. Appointing the right and proper audit committee will make the firm’s reputation in terms of independency and reliability.
2. At what phase when do audit teams hire staff members?
Regularly reviewing your company's internal procedures guarantees that all operations are running as smoothly as possible. It can generate more revenue and can save operating expenses, making a company more profitable.
There are five phases in operational audit that has different process and procedure. Selecting your team plays a crucial aspect in the planning stage. The selection of the members is in the hands of the team leader. The team leader must choose the members who are independent, reliable, and trustworthy. As a whole, the audit team should be included in the process of evaluating the team's combined talents and expertise, as well as whether or not they are qualified to carry out the engagement.
There are things that leader must consider in choosing his or her team. As stated in the Clean Energy Regulator (n.d.), “the lower the amount of evidence available, the higher the likelihood that an expert may be required in the team.” Other assurance evidence expected to be obtained (quantity and quality). The team’s knowledge and ability is likely to have in the firms as it has a better experience in the auditing processes and procedures.
References:
The appointment, function and responsibilities of audit committees. (n.d.). DLGSC. Retrieved October 14, 2021, from https://www.dlgsc.wa.gov.au/department/publications/publication/the-appointment-function-and-responsibilities-of-audit-committees
Grabillo, M. A. (2021). Operational Audit: What are its Phases? Retrieved October 14, 2021, from https://markgrabillo.blogspot.com/2021/10/operational-audit-what-are-its-phases.html
Selection of audit team members. (n.d.). Clean Energy Regulator. Retrieved October 14, 2021, from http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
Drice, Arielle Jean G.
2019-105710
CBET-01-501A
1. Appointing a right staff is significant in the success or failure of the organization. There are factors affecting how the staff and the team success on their goal like competency of staff, support of management, organizational status and more. Those factors shows how important it is to assign a right staff for a better team composition. Appointing a right staff is good but coordinating the staffs correctly would be better. A right staff word would be subjective as you can't specifically define a right staff, however appointing a staff and coordinating or harmonizing them to work together would be a new stage. You can use a broom bristle alone but you can use brooms bristle efficiently. Aristotle once said "the whole is something besides the parts". A successful team carry the characteristics of synergy, clear goals, strong leadership, fulfill own and colleagues task, communication, constructive resolution and confidence of contribution. Appointing a right audit staff would be significant only if he or she is coordinating with the team accordingly. It is the team leaders responsibility to make his team work and succeed. He will be the one who'll put the right staff to do what should he doing and what should he contribute to the members. It is more strengthen by communicating to each other. In addition to that audit staffs creates a more workforce to be used in performing their job. Generates brainstorm for a effective solution and categorizes risk to be resolve by the audit team.
ReplyDelete2. Selection phase is where the audit teams meets with the management of to discuss what should be address in the upcoming audit activities and might as well discuss how many personnel is need to conduct the said objective. Selection phase is implicitly stating the fact that before the plan started a workforce must be known in order to know the limit of the team's work. During selection phase it is the audit team and management responsibility to assess whether the auditor is capable of doing the task. Evaluating auditor thoroughly will help the team to increase its ability to conduct a well versed audit and recommendation. An assessed auditor may only be a part of the audit teams if he happens to qualified for the specific characteristics provided by audit committee or audit charter. However remember that in planning phase, it is stated that it is where the scope and objectives are defined and set. In addition to that planning phase includes the discussion of audit teams to management the risk, purpose, assumptions and logistics. Hiring of staff maybe presumed happens between the selection phase and planning phase of audit. During these phase additional workforce maybe needed if the original audit team is not enough to conduct, observe and deliver an effective and efficient work. Fieldwork is where the works is conducted and may impose or hire additional audit staff but it is unlikely because tye planning that have been generated is not discussed to them. The same goes to reporting as the one who knows what happened in the audit will only be able to communicate the result to the management. For the follow up phase, it can ba assumed that additional audit staffs may be hired if something is not thoroughly managed or addressed on the first cycle of audit. In other words additional workforce or audit staffs is needed to evaluate the organization.
References:
ReplyDeleteAristotle, ., & Ross, W. D. (1981). Aristotle's Metaphysics. Oxford [England] : Clarendon Press.
Athens Micro. (2021). 6 Characteristics of a successful team. https://www.athensmicro.com/2021/07/6-characteristics-of-a-successful-team/
Miller, R. W. ( August, 1957). OPERATIONS AUDITING: THE STUDY OF NEWEST PHASE OF INTERNAL AUDITING. [Thesis, The University of Richmond]. UR Scholarship Repository. http://scholarship.richmond.edu/masters-theses
Sinra. (n. d.). Operational audit: Definition, Processes, Example and Reporting. Wiki Accounting. https://www.wikiaccounting.com/operational-audit/
The Institute of Internal Auditors. (2016). International Standards for Professional Practice of Internal Auditing(Standards). The Institute of Internal Auditors.
The Office of Internal Audit. (n. d.). Audit Process. University of Oregon. https://internalaudit.uoregon.edu/report/audit-process
Paglinawan, Eliazar A.
ReplyDelete2019-101459
CBET-01-501A
Written Assignment Week2
(1) What is the significance of appointing the right audit staff members?
I think that the importance of carefully selecting the right audit staff members is having the quality of audit performance and services to aid the management better in determining the efficacy of the controls.
Internal auditing is a non-profit organization's independent assessment activity that examines accounting, financial, and other processes in order to provide management with services. It's a type of managerial control that measures and assesses the effectiveness of other controls. As a result, the internal auditor should be concerned with any aspect of the company's operations where he may assist management (Miller, 1957).
An audit committee plays a key role in assisting a local government to fulfil its governance and oversight responsibilities in relation to financial reporting, internal control structure, risk management systems, legislative compliance, ethical accountability and the internal and external audit functions (DLGSC, 2021).
(2) At what phase when do audit teams hire staff members?
Audit teams hire staff members during the planning phase for they are going to be needed on the next step which is fieldwork to test, review, and assess the methodologies.
The lead auditor must identify the personnel who will be in charge of completing each audit activity. Team members must be free of conflicts of interest and not be involved in the activities they are auditing in order for the process to be as objective as feasible (Calle, 2020).
References:
Calle, J. P. (2020). Stages and phases of internal audit. Retrieved October 14, 2021
from https://www.piranirisk.com/blog/stages-and-phases-of-internal-audit.
DLGSC. (2021). The appointment, function and responsibilities of audit committees.
Retrieved October 14, 2021 from https://www.dlgsc.wa.gov.au/department/publications/publication/the-appointment-function-and-responsibilities-of-audit-committees.
Miller, R.W. (1957, August). Operations Auditing A Study of the Newest Phase of
Internal Auditing [Master’s Thesis, The University of Richmond]. scholarship.richmond.edu https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses.
1. What is the significance of appointing the right audit staff members?
ReplyDeleteAppointing the right audit staff members assess and evaluates if the business operates effectively and efficiently, and review the procedures and policies of the business. Effective operations auditing recognizes that "management is getting things done through people." Thus, a spirit or enthusiastic "team play" is necessary. The recognized goal is improvement in the future, not retribution for past mistakes; since the auditor is in a staff relationship he makes recommendations and suggestions; top management and local management make the decisions. In its highest sense, operations auditing is performed by competent and imaginative people who are devoted to the betterment or the whole organization. (Miller, 1957).
2. At what phase when do audit teams hire staff members?
Audit teams hire staff member when it is in the phase of planning. During the planning process, the internal audit team will define the scope and objectives, review guidance relevant to audit (e.g., laws, regulations, industry standards, company policies and procedures, etc.), review the results from previous audits, set a timeline and budget for the audit, create an audit plan to be executed, identify the process owners to involve, and schedule a kick-off meeting to commence the audit. (Clarke, 2018). The company will hire a management audit to assess if the company can carry out the changes of the company’s policies and procedure, and evaluate the effectiveness of the operation in the company.
Reference:
Chambers, A. & Rand G. (2010). The operational auditing handbook: Auditing business and IT process (2nd ed.). John Wiley & Sons, Ltd. pp.224.
Clarke, I. (2018). What is an Internal Audit? Answers to Common Questions. Retrieved October 14, 2021 from https://linfordco.com/blog/what-is-internal-audit/.
Miller, R.W. (1957, August). Operations auditing, a study of the newest phase of internal auditin. [Master's Theses, University of Richmond]. UR Scholarship Repository. https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses
-Ramos,Maria Eloisa (2019-101335)
ReplyDelete1. What is the significance of appointing the right audit staff members?
Employees are one of the most important asset in helping a company to attain its objectives and goals. The reason behind why companies invests in their people is that they are the most important resource in your organization. In an article written by Morris Bixby Group (2017), there are numerous reasons why hiring the right person is vital in a business venture. These are because of time, customer service, business growth, lower turnover costs, team building and morale. It is stated in the same article that hiring wrong person can cost you more than just money. Hiring wrong employees can also consume time, effort, and energy of the company. It is important to assess and evaluate the potential employees from the beginning. It is vital to appoint the high potential, capable, and flexible people in every kind of business. According to Balance Point Team (2016), hiring process should be continuously improving and developing as time passes by. In that way, it will lead you to find right people for the designated positions and it could help you provide insights into the kind of support your staff needs. It is also important to listen and assess your management in order to keep the employees productive and efficient. Furthermore, choosing right people will create a more productive, interactive, and healthy environment. It will eliminate tensions, frauds, and other issues regarding to the team . In an audit field, appointing the right audit staff leads to effectiveness and efficiency of the whole auditing process. It avoids threats to company such as fraud, misinformation, leakage of information, and theft. The audit staff must possess good traits such as compliant, honest, trustworthy, and transparent.
2. At what phase when do audit teams hire staff members?
As per Suran (2020), there are five quality audit process namely, Selection, Planning and Preparation, Execution, Reporting, and Corrective action. The audit phases involves process of achieving efficiency and effectiveness of the auditing process. As mentioned above, one of the most important resource in an organization is its people. As for the first phase, which is Selection, this is where the process begins. It all starts with choosing the right audit staff. This is where leadership and management of the development meets. Companies should always possess a good quality of audit staff since it is essential to maintain and enhance the audit quality and auditor’s independence. An auditor must carry an independent mind towards assessment of the company. It is someone who knows what to do and understands the business, as well. Your audit staff will add value through undergoing a significant evaluation process.
References
Balance Point Team (2016). The Importance Of Hiring The Right Employees. Retrieved from https://balancepointhcm.com/the-importance-of-hiring-the-right-employees/
Juran (2020). The Importance of Quality Auditing. Retrieved from https://www.juran.com/blog/the-importance-of-quality-auditing/
Morris Bixby Group (2017). Why is Hiring the Right Person Essential?. Retrieved from https://www.morrisbixby.com/2017/03/17/hiring-right-person-essenti
-Kianna Erika D. Zarain CBET-01-502A 2019-104924
(1) What is the significance of appointing the right audit staff members?
ReplyDeleteThere must be a competent internal auditing staff which represents a wide range of technical abilities and practical experience. (Miller, 1957). It was also mentioned in the conclusion of the thesis that the personal characteristics of internal auditing staff that must be present is to have a broadness of background that enables them to look at operations from an overall management viewpoint. Having the right audit staff members requires technical abilities such as knowledge of data analysis, project management, accounting, and finance, as well as practical experiences such as personally overseeing management's operational activities and the ability to meet and work cooperatively with others. Finding and employing the correct audit team members will help to ensure that audit reports are reliable and credible.
An audit team is an independent function in an organization that helps management achieve its objectives by evaluating the risk and control environment. Audit department leaders must understand the foundations and traits of effective audit teams, as well as bad habits to avoid that decrease an internal audit team’s effectiveness. Audit teams must have key traits to be efficient and effective in the audit process.
Internal auditor executives and the appropriate audit staff members should have the same goal. The alignment of the audit plan and scoping areas with the business's developing risks and growth areas is one sign of a good audit team. Effective audit teams can clearly and effectively measure how their actions contribute to the company's goals, putting them in a strong position to convince the audit committee of their worth. Internal audit teams that build positive connections with their auditees generally discover that their audit customers are more welcoming and proactive during the audit process, resulting in more effective audits. Internal audit teams that use technology to automate processes and increase efficiency are more likely to succeed.
(2) At what phase when do audit teams hire staff members?
Audit teams hire staff members during the planning phase or before conducting fieldwork. The planning phase involves assessment of risk, designation of resources and timeline, collection of relevant data that will serve as the basis for determination of the scope, identifying who is involved in the audit process, and preparation of audit plan. This phase is the starting point where internal auditors organized the audit process. As for fieldwork, before conducting the actual audit, it must identify the internal auditors together with its staff members so that they can divide the roles and responsibilities beforehand to prevent conflict during fieldwork. The audit team leader is ultimately responsible for the selection of team members. The audit team as a whole, on the other hand, should be included in the process of evaluating the team's combined talents and expertise, as well as whether they are qualified to undertake the engagement. According to Division 2.2 of the NGER Audit Determination, the audit team leader must ensure that all members of the audit team have the necessary knowledge, skills, and availability to satisfactorily prepare for and conduct the audit, as well as to compile the audit report.
In conclusion, selecting the correct audit staff usually begins during the planning phase, when audit professionals must be identified. Appointing the correct audit staff members necessitates the acquisition of qualities that are appropriate for the auditing procedure. Having the right personality traits and sufficient understanding of the fieldwork is critical to the audit process' effectiveness.
ReplyDeleteREFERENCES:
5 traits of successful audit teams. AuditBoard. (n.d.). Retrieved October 14, 2021, from https://www.auditboard.com/blog/5-traits-of-successful-audit-teams/.
Auditing: Objectives & phases of operational audits ... (n.d.). Retrieved October 12, 2021, from https://www.youtube.com/watch?v=7aUabD77FvI
Miller, R. (1957). Operations auditing, a study of the newest phase of internal auditing (thesis).
Selection-of-audit-team-members // . Clean Energy Regulator Crest. (n.d.). Retrieved October 14, 2021, from http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx.
1. What is the significance of appointing the right audit staff members?
ReplyDeleteEvery staff member in an organization plays a vital role in an entity and they have different expertise that contributes a vast range of help to achieve the company’s goals and objectives. In auditing, there are also staff audit members that works in a company whose sharing their knowledge and expertise. To start with, let us first define what is staff auditors and what are their responsibilities. Staff auditors are the one who analyzes the operational and financial processes of a company to ensure compliance with industry and federal regulations. There are two different types of staff auditors and these are the internal and external auditors. Internal auditors are employed directly by a company and conduct internal audits throughout the year on the company’s financial and operational policies. On the other hand, external auditors are employed by an auditing firm and provide an objective opinion on the company’s financial and tax compliance. Staff auditors are responsible for analyzing an organization's financial activities, ensuring compliance with regulations, and auditing accounts as needed. Staff auditors work under senior auditors' supervision, and they perform similar roles, albeit at a lower level. Furthermore, appointing the right staff members must be done in all entities. It is very significant in every company especially when it comes to auditing, as we all know that auditing is one of the crucial part in workplace that needs not just a skill but a lot different skills. Each member must possess the best role that fits them very well in line with their capabilities and qualities as an audit staff. Placing them in a right position will help the company to have a smooth workflow. In addition, one of its benefits is the lessen of risk of having a conflict within the auditing process. Their skills and expertise could contribute a lot of potential opportunity for the success of the company. This could also be an edge to the other companies because of the fact that it will greatly help the entity to have a progress in its performance and to immediately meet it goals and objectives.
2. At what phase do audit teams hire staff members?
ReplyDeleteSelecting audit team members is an integral part of the preparation stage in auditing. Hiring of staff audit members must be done during the Selection phase. In selection phase, Internal Audit conducts a University-wide risk assessment near the end of each calendar year. They develop the audit plan for the subsequent year based on the results of this assessment and the department’s available resources. (Grabillo, 2021). Obviously, before planning for something that we want to be accomplished, we should always keep in mind the needs and resources that we must have before starting with the plan. In hiring of staff audit members, applicants were being interviewed and went through all the process and assessments. All of the qualified applicants will be hired to contribute their expertise and skills to the company that will help the company achieve its goals and objectives. They handle the overall responsibility for the selection of team members’ rests with the audit team leader. However, the audit team as a whole should be part of the process of evaluating the combined skills and experience of the team and whether they are appropriate to perform the engagement. Since this phase is the first step, I believe that through hiring the skilled audit staff, first phase will be prepared smoothly and the following steps in audit phases will be planned accordingly to be able to achieve its goals and objectives.
References:
Clean Energy Regulator. (n.d.). Selection of audit team members Accessed October 14, 2021. http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
Grabillo, M. A. (2021). Operational Audit: What are its Phases? https://markgrabillo.blogspot.com/2021/10/operational-audit-what-are-its-phases.html
Here’s How To Become A Staff Auditor In 2021. (2021). Zippia. https://www.zippia.com/staff-auditor-jobs/
Jobhero. (2018). Staff Auditor Job Description. https://www.jobhero.com/job-description/examples/accounting/staff-auditor
RAMOS, CRISHIA ELLAINE P. (2019-105763)
(1) What is the significance of appointing the right audit staff members?
ReplyDeleteWhen it comes to the future growth and success of a business, the staff that it hires are the most important factor. Hiring the right audit staff members for the business is critical regardless of the type of work we do. Having quality internal auditors will assist the company in running and growing. Recruiting and retaining top talent, on the other hand, can be a difficult task but will surely give successful possible outcomes. We all know that company staff are the most important and valuable asset in any business. There is no business that could continue to operate efficiently and successfully without them. Each audit member brings something unique to the company, so it is critical to seek out those with the best qualities.
Based on the article “The Importance Of Hiring The Right People”, appointing the right person for auditing begins with a dependable individual who is well informed about the needs of the business. Discussing the requirements with the hiring manager and executives can help to make a more informed decision. By picking the right person, the company will be able to move forward and become more successful in the future. Managers and business owners must be aware of an employee's potential impact and consider it throughout the appointment process.
Within the company, each group of people serves a specific purpose and performs a specific job. As the company begins to take shape, we can appoint the most talented and knowledgeable individuals to these positions to give the organization a reasonable audit assurance. If the right people are appointed to the most important jobs, a company’s development and growth can increase the likelihood of success.
Accordingly, if a company is designed to accept and hire the right people to conduct the audit, it is almost certain that the company's business operations will be successful. The logic goes that the company's success is determined by how diligently and efficiently appointed individuals perform their duties, responsibilities, and functions. Every working person must develop and enhance their skills in order to meet the requirements of every job they seek.
Therefore, appointing the right audit staff members is an integral part of the preparation for audit. The whole audit members should be involved in the process of determining whether the team’s combined skills and expertise are sufficiently accurate for the engagement. The success of the audit process as well as the whole operation of organization relies on the audit team and other staff involved.
(2) At what phase when do audit teams hire staff members?
ReplyDeleteAuditors conduct the internal audit using the five phases which include selection, planning, fieldwork, reporting results, and follow up. I believe that hiring audit staff members happen during the selection stage. One important part in the selection stage is appointing knowledgeable auditors with relevant experience in the field. Experienced auditors are more likely to gain the trust of clients and company staff whose areas are being audited. Internal audit managers must also comply with the standards by appointing auditors who are independent and objective. Effective staffing for a specific engagement will lead to have a quality and fair audit. We have to carefully appoint the audit staff members since they are considered as a critical component of any organization's good governance, risk management, and controls.
References:
The Importance of Hiring The Right People. New To HR. (2014). Accessed October 10, 2021, from https://newtohr.com/importance-hiring-right-people/amp/
Important People and Their Roles in a Corporation. (2016, November 30). Accessed October 10, 2021, from https://www.mightyrecruiter.com/recruiter-guide/important-people-their-roles-in-corporation/
- Mendoza, Rhea Lyn (2019-101819)
(1) What is the significance of appointing the right audit staff members?
ReplyDeleteAudit staff members are important in the business organization. They have a lot of responsibilities need to fulfill for them to ensure their compliance with the regulation. The following are their responsibilities: (1) to assist in development and execution of audit programs; (2) perform auditing for corporate operations, finances and compliances with regulatory requirements; (3) evaluate and recommend improvements to business processes and controls; (4) maintain positive working relationships with management and audit teams; (5) perform assigned audit activities timely and effectively; (6) interview business units to obtain information required for auditing; (7) notify audit issues to Managers in a timely fashion; (8) prepare reports of audit findings and recommendations to management; and maintain all audit work papers and reports for reference purposes.
Having these responsibilities is an indication to choose the best and most qualified staff for this position. Aside for the reason to comply with the requirements and policies for the auditor, it is also significant to pick a persons who are knowledgeable and with good communication skills. For an instance, if a company appoints someone who do not possess all qualification for the job, in effect the company will be at risk. Data provided will not be as accurate or might not be understandable as it should be. However, if they picked the right person qualified for the position, the other way may happen. It decreases the risks and increases the opportunities for the entity.
It only implies that as a student, if we want to pursue this career, we need to give all our best now. While we are learning, it’s a good way to practice for us to be as competent like others. Institution will choose the right fit to the position and the only way to be qualified is to make sure that we have what it takes. Being an audit staff is both an honor and responsibility that should not be taken for granted.
(2) At what phase when do audit teams hire staff members?
The selection phase is when the audit teams hire staff members. It requires a lot of process and inspection whether one is qualified to the position. The selection process involves the application, screening, interview, and assessment. The phase started during the planning stage where they calculated the needs for the position which will be a great a decision to their team.
I don’t have any personal experience about how does this phase works on finding an auditing staff but I do have an experience on how this selection works on the other field. At the beginning, you must shoe your advantage among the other and how can you contribute to the team. Process is not easy but this must be employ to ensure that audit team will hire persons perfect for the job.
References
Audit Staff Responsibilities and Duties. (n.d.). Great Sample Resume. Retrieved October 15, 2021, from https://www.greatsampleresume.com/job-responsibilities/accounting/audit-staff
Audit Committee Role & Responsibilities. (n.d.). CFA Institute. Retrieved October 15, 2021, from https://www.cfainstitute.org/en/advocacy/issues/audit-committee-role-practices#sort=%40pubbrowsedate%20descending
van Vulpen, E. (2021, September 7). The Selection Process: A 7-Step Practical Guide. AIHR. Retrieved October 15, 2021, from https://www.aihr.com/blog/selection-process-practical-guide/
LOPEZ, FRITZ REIZEN V. - (2019-103689)
1. What is the significance of appointing the right audit staff members?
ReplyDeleteIt is crucial to every company to appoint right members as they are the one who have the exceptional skills to complete tasks as well as they improve the organization’s overall efficiency and effectiveness.
Having the right audit staff members gives organizations a huge advantage because of the expertise they are providing. Financial reporting, internal control structure, risk management systems, legal compliance, ethical accountability, and the internal and external audit duties are all areas where an audit committee can help a local government fulfil its governance and oversight responsibilities. A staff audit is a crucial initial step in evaluating labour issues in a company. They provide an up-to-date assessment of the workforce and serve as the foundation for future benchmarking and workforce assessments. They also supply the essential database for accurate cost estimates of alternative severance and pension methods, as well as payment disbursement to workers.
Therefore, audit staffs would benefit companies as it assists them in achieving its goals by implementing a systematic, disciplined approach to evaluating and improving the efficacy of risk management, control, and governance systems and ensures that the obligation for maintaining an internal control system is met.
2. At what phase when do audit teams hire staff members?
An auditor is a professional who prepares and inspects corporate activities in order to ensure that established standards are followed. These standards may be established by the audited company itself or by regulatory or governmental bodies.
Before proceeding to the audit execution, reporting and follow-ups, companies must hire staff first to perform this task and to meet this obligation, the planning phase must be done accordingly.
Every audit necessitates planning, from defining the scope and goal to establishing audit stages to achieve the goal. Internal audit meets with management at the start of the audit to review the audit’s purpose, risk factors, and other logistics, necessary background information is obtained to gain an understanding of the audited area’s size, responsibilities, and procedures. It also includes management, and the details are documented in a planning and scoping memo.
Hence, hiring audit staff members, establishing the overall audit strategy for the engagement and developing an audit plan, which includes, in particular, planned risk assessment techniques and planned responses to material misstatement risks, are all part of the planning process.
References :
Audit Process. (n.d.). Office of Internal Audit. Retrieved October 14, 2021, from https://internalaudit.uoregon.edu/report/audit-process.
Clarke, I. (2018). What is Internal Audit. Independent External It Auditors: Soc Audits & Assurance. Retrieved October 14, 2021, from https://linfordco.com/blog/what-is-internal-audit/.
- Sangol, Learein J. ( 2019-106977 )
1/2 Guide Questions:
ReplyDelete(1) What is the significance of appointing the right audit staff members?
(2) At what phase when do audit teams hire staff members?
Internal auditing is a distinct profession. Unlike ordinary auditing, which is primarily concerned with issues that affect financial statements, internal auditing is concerned with assessing issues that affect the overall stability of the organization. Furthermore, internal auditing is more consultative than confirmatory in nature, and it is concerned with improving systems rather than identifying errors. Internal auditors are extremely valuable to a company's management because they provide pertinent data, fairly and completely that managers require.
Internal auditing has four (4) phases or steps that the company’s management served as the standard to their business. These phases help the companies to sustain the efficiency of the resources and effectively control the management rules and regulations or the control system. The four phases are planning, fieldwork/execution, reporting, and follow-up.
The appointing of the right audit staff member would fall to the planning or preparation phase. According to the book of Jim Collins entitled Good to Great, “to build a successful organization and team you must get the right people on the bus”. According to him, great businesses and organizations do this. They find the right people and place them in the appropriate positions. Appointing the best candidates for the job is critical regardless of the industry. Getting quality staff members will assist the company in running and growing. However, making the wrong appointment can result in a lot of extra stress and issues that can stymie the growth of a business. An inadequate performer has a negative impact on the other employees around them and can cost a company a lot of money in the long run.
2/2
ReplyDeleteMeanwhile, in internal auditing, an audit team is defined as an interdependent set of people that is part of another larger social system or organization and that has been organized to accomplish a particular purpose or set of purposes (Stewart et al., 1999). The audit team leader bears overall responsibility for team member selection. Nevertheless, the audit team overall should be included in the process of investigating the team's combined skills and experience and of if they are qualified to perform the involvement and participation. The audit team leader should ensure that the member he will appoint must have expertise, skills, and knowledge to prepare and carry out the audit report. Because one wrong information could affect their credibility. As an example, assigning audit personnel to the Research and Development department. When it comes to internal auditing research and development, the audit staff researcher should be well-versed. Identifying the aspects of the work environment, task assignment, and task performance that influence the effectiveness of resources.
But when important inadequacies in abilities and expertise are recognized and cannot be corrected through internal resources, the audit team might have to bring in a specialist from outside of the organization. The lesser the level of knowledge and expertise, the more likely it is that a specialist will be required on the team. The specialist is then made a member of the audit team and is susceptible to the same standards as the other audit team members.
To summarize, the audit firm's brand and reputation, size, and industry expertise are among the key factors that should be considered to ensure high audit quality.
References:
• J. Collins (2001). Good to Great. Retrieved October 12, 2021, from https://principus.si/2021/04/03/jim-collins-good-to-great/
• Stewart, Greg L., C. Manz, and H. Sims (1999). Team Work and Group Dynamics. New York, NY: John Wiley & Sons
• R.W. Miller (1957). Operation Auditing, A Study of the Newest Phase of Internal Auditing. Retrieved from October 12, 2021, from https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses
ARONCE, MARY ANGELOU N.
1.What is the significance of appointing the right audit staff members?
ReplyDeleteMany large, national public accounting firms have offered a wide variety of “management” services to their clients for many years. Medium-sized, local firms have started to provide “management to their client also (1957). Operational Auditing, from merely verifying financial accounts and statements to observation and evaluation of operations. It has become service to management type of job that includes spending a lot of money, talent and time. A team is defined as an interdependent set of people that is part of another larger respect to information, resources, knowledge and skills and who seek to combine their efforts to achieve a common goal (Thompson, Leigh. 2008). Just like in an organization, you need to hire the best and qualified staff in order for you projects and works can be finished with the best outcome that everyone needs. They have big responsibilities to carry and a team must be synchronized with each other. Their combined skills and experience of the team and whether they are appropriate to perform the engagement. In its highest sense, Experience and a professional competence quality is what most company look for in an Operational auditor. Operations auditing is mostly performed by competent and imaginative people who are devoted to the betterment or the whole organization. Other Qualities needed for this type of role can be: Constructive Thinking ability, command respect reason and fairness, thoroughness and speed, ability to think in terms of management at all levels, avoidance of “police man”, “ivory tower”, or superior creature attitude, and the ability to express ideas clearly. Having these qualities on the staff can assume responsibility in a management, can easily recognized goal in improving the future.
2.At what phase when do audit teams hire staff members?
Everything starts with choosing the right staff, without them you wouldn’t be able to move. Think of it like if you want to build a house. Your house will stay a dream without you selecting an architect, engineer, and etc. for you to achieve the project that you would want to have. Hence, Among the 5 Operational Auditing Phases, I think the hiring of staff member includes in the Selection phase. Before the planning and execution phases, you need to equip competent and qualified auditing team in order for you to easily assess and disseminate in your planning phase. After you select, do a screen check, and hire your staff, you would transition smoothly to the next phases.
References:
Miller, Russell William, "Operations auditing, a study of the newest phase of internal auditing" (1957). Master's Theses. Paper 792. https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses.
American Institute of Certified Public Accountants – Research Department. Management Services – A survey, “Journal Accountancy”. 1957. P. 42. https://www.jstor.org/stable/23078631
Thompson, Leigh (2008). Making the team : a guide for managers (3rd ed.). Pearson/Prentice Hall. https://en.wikipedia.org/wiki/Team#cite_note-1.
The Clean Energy Regulator. (n.d.). Retrieved from http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx#fn-1.
Mark Grabillo. 2021. OPERATIONAL AUDIT: WHAT ARE ITS PHASES. https://markgrabillo.blogspot.com/2021/10/operational-audit-what-are-its-phases.html.
HABON, ASHLEY P
CBET-01-501A
2019-102695
ReplyDeleteAppointing the right audit staff members plays a significant role in the field of auditing. It reduces the audit risks. Having the right audit staff team enable the auditors to Express an opinion of whether the financial statements are prepared by the management in all material aspects, by the identified financial reporting framework and appropriate criteria and would give the professional opinion in obtaining high level of reasonable assurance of the certain subject matter.
In connection with this, it increases and enhances the confidence and credibility of the information that would be useful in making sound decisions. Furthermore, can demonstrate superior proficiency by performing with a high level of effectiveness, expertise and knowledge. Thus, in this way they can provide high-quality services for the public. In addition, it is inevitable to assign audit staff members to evaluate vulnerabilities in the organization process and to analyze the control environment internally so that they can be addressed as soon as possible to avoid harm to the organization or its stakeholders.
In the planning phase or in the preliminary audit engagement activities would audit team hires staff members. At this phases it will be relevant the hiring process in sense that suits there expertise and knowledge in performing the espousal considering the nature of the organization. The audit team will define the scope and objectives of the audit, review the relevant scrutinize guidance in order to review the results of previous peruses, set a timeline and budget for the audit, create a dissect plan to be executed, identify the process owners to involve and schedule a kickoff meeting to begin the audit during planning process.
Fieldwork, on the other hand, is the actual act of auditing. The audit team will carry out the audit plan at this phase. This usually entails interviewing key personnel to ensure that they understand the process and controls, reviewing relevant documents and cultural relics for an instance control execution, tweaking the reigns for a sample over a period of time, documenting the work that has been done and identifying exceptions and recommendations.
Similarly, during the execution phase, the auditing team must interact with the niche in order to inspect, comprehend and appraise which aspects must be buckled down in a systematic method in order to achieve superior results and recommendations. Moreover, the planning and fieldwork are the most keys to a successful during which its audit staff members evaluate and improve the performance of governance, risk management and control over physiological management, and control over physiological activities. Also, to provide information and assurance to the board and management regarding their responsibilities.
References:
Linford & Company, LLP (2008-2021). What is Internal Audit? https://linfordco.com/blog/what-is-internal-audit/
DELAMBACA, VICENTE JR T. - (2019-106640)
The significance of appointing the right audit staff members
ReplyDeleteOperational audit functions are crucial in organizations because they bring value and develop a plan to achieve the set objectives by using a structured and systematic approach to control and assess operations. According to the Statement of Responsibilities of Internal Auditors, the operations auditing activities are reviewing and appraising the soundness, adequacy and application of accounting, financial and operating controls, ascertaining the extent of compliance with established policies, plans and procedures and appraising the quality of performance in carrying out assigned responsibilities (New York: Institute of Internal Auditors, 1957).
From this, we can say that appointing the right audit staff members is important because they will play a big role in the audit process and be held accountable for analyzing risks, conducting a thorough control design and effectiveness review, establishing and managing audit programs, work plans, and resource budgets, as well as executing fieldwork, testing, and data analysis during audits and reviews. There must be a competent internal auditing staff which represents a wide range of technical abilities and practical experience. The success of the audit will depend upon the skill, intelligence and experience of the auditor. According to Miller, R.W.(1957), to properly carry out their operations auditing responsibilities the audit staff members should have the spirit of objectivity, competence, independence and teamwork, with an eye towards future improvement rather than looking back on past mistakes. They should also have experience in identifying risks, controls, and opportunities for improvement in business processes, as well as establishing and implementing audit test programs and preparing executive-level audit reports, to achieve successful operations auditing activities.
(2) At what phase when do audit teams hire staff members?
Under the planning phase is when audit teams hire staff members. The hiring of staff members by the audit teams is a crucial aspect of the planning stage. Before doing the actual audit process, the auditor, who's the team leader, must make certain that all staff members have the necessary knowledge, abilities, and availability to properly prepare for the audit report. Because to execute the plan, you need staff members who will help you gather evidence, documents, or information to reach a conclusion and make a good recommendation for the company or organization. Thus, to be an effective operational auditor, personal observation and conversations at the site of the audit are important. The staff members will also assist the auditors to familiarize them with the locations and give them a picture of all the operations being carried on at the audit site. Good planning and effective alignment of people, processes, and technology are required for achieving success.
Reference
Miller, R. W. (n.d.). Master's thesis - university of Richmond research. Retrieved October 14, 2021, from https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses.
-BULING, CATHERINE (2019-103626)
(1/2)
ReplyDelete1. What is the significance of appointing the right audit staff members?
Hiring staff in a company may cost time especially when dealing with a lot of applicants that offer great skills and experiences for the job they seek in the company. The primary purpose of the company is to hire the right person that fits well for the flexible and sometimes messy work in the company. Most common problem in hiring staff is finding the right person that will give benefit to the company, vice versa, can be trusted, honest, competitive, responsible, accountable, and others. If a company is looking for an employee that will protect the entity’s financial position, the best thing they can do is to hire an auditor. In some cases, an auditor's job can also be performed by other members of the board of some staff that is related to its job as well. But on the other hand, hiring a staff that is knowledgeable and have some expertise in auditing will be very beneficial for the company. Auditors can work with the internal operations and make sure that the company complies with everything including the guidelines and standard. According to the Institute of Internal Auditors (IIA), established 1941, internal auditing is defined as “an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations.” It will bring help to the organization by accomplishing its objectives and bringing disciplines and objectives to improve the quality of its operations. An auditors general tasks in the company is to assess risks and take control within the organization, ensure that the company’s employee follows the state laws rules and regulations, and make suggestions or insights into ways that the company can reduce costs, increase the profit after identifying the issues and problems after the auditing process. One of the ways also is to decide whether to hire an internal auditor or an external auditor. Companies can hire external auditors or freelancers to ensure that the track of financial records are updated and free from errors. Hiring them during the auditing season can be the best option to make sure that the operations are well done. Meanwhile, if the company wants to make sure that everything on the system is as exact as what it should be, they can hire internal auditors to consistently monitor the company’s bookkeeping.
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ReplyDelete2. At what phase when do audit teams hire staff members?
Entrusting the quality of work with your employees or auditors is a big step for the company. Imagine letting them decide on matters that are relevant and significant to the business operations, without worrying about the results of it is a big leap. As mentioned in the previous question, hiring staff that best suits the job the company offers is very challenging because of its responsibilities. Auditors responsibilities are very important to follow, sometimes, many businesses fail to follow such regulations resulting in complicated auditing works in operations. In auditing phases, it is important to hire credible and experts in auditing in the mere start of the operation. Meaning, that it is important if the company hires auditors and staff at the start or at the planning phase. During the planning phase, the internal audit team will define the scope and the objectives necessary for operation. It involves the overall plan, the timeline, budget, identification of processes that need to be discussed and tested firmly, and the step-by-step procedure. Hiring an auditor at this phase is the best time for the company because it is important that the auditor or staff has better knowledge and background about their responsibilities. According to Sleek Hong Kong, hiring external auditors will be very beneficial for the company. When the company hires an auditor outside the company, their professional judgement will be biased-free because there is no sense of emotional attachment within the organization. In line with that, the auditor can easily point out the problems and issues in the operation without worrying about offending some staff.
REFERENCES:
Clarke, I. CPA, CISA, CISSP. (2018, November 28). What is an Internal Audit? Answers toCommon Questions. Linford & Co. IIP CPA Firm. https://linfordco.com/blog/what-is-internal-audit/
How to Hire an Auditor. Indeed for employers. https://www.indeed.com/hire/how-to-hire/auditor
Liberto, D. (2020, November 23). Internal Auditor (IA). Investopedia. https://www.investopedia.com/terms/i/internalauditor.asp
Sleek Hong Kong. 5 Things to Consider Before Hiring an External Auditor. Sleek. https://sleek.com/hk/resources/5-things-to-consider-before-hiring-an-external-auditor/#
1. What is the significance of appointing the right audit staff members?
ReplyDeleteThe audit staff plays an important role in an organization as it involves a wide range of activities, obligations, and responsibilities. The audit staff assists the audit management in the preparation of audit programs, meets with and interviews the essential audit clients, and participates in meetings with clients as well as meetings among audit staff and management. Audit staff also carry out field test work and audit processes as necessary, as well as financial audits in line with Generally Accepted Auditing Standards (GAAS), to establish compliance with policies & procedures and to determine the efficacy of internal controls.
Moreover, audit staff also communicates and conducts interviews with operations staff and/or management regarding their control environment and changes in control activities from previous audits, manages assignments within time budgets and target dates, reporting any timing issues or budget overruns to managers. Aside from that, the audit staff also assists in preparing audit reports and making practical and makes value-added recommendations to improve risk management practices and the efficiency and effectiveness of operations, and participates in special projects as assigned. Hence, it is important to appoint the right audit staff members for they are the one who are responsible in identifying, prioritizing and measuring the risks involved in an organization.
2. At what phase when do audit teams hire staff members?
The audit team hires staff members during the selection phase. It's a crucial aspect of the planning process. The audit team leader is ultimately responsible for the selection of team members. The audit team as a whole, on the other hand, should be included in the process of evaluating the team's combined talents and expertise, as well as whether they are qualified to undertake the engagement. The audit team leader must ensure that all members of the audit team have the necessary knowledge, abilities, and availability to properly prepare for, conduct, and report on the audit.
Furthermore, the audit team leader must consider also whether the team has enough supporting resources, such as time, equipment, and access to management and key personnel, to complete the engagement. It is important to note that while it is at the audit team leader’s discretion to determine how the expert will be selected or hired, once the expert is brought into the audit team, under the NGER Regulations they are a full member of the team and are therefore subject to the same independence, quality control and conflict of interest situation requirements as the other audit team members.
References:
Thomas B. (2021). Staff Auditor Jobs Description. Auditor crossing. https://www.auditorcrossing.com/job-description/5279/Staff-Auditor-Jobs/
(Muczyk et al., 1986). Audit team formation. Aabri.com. https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.aabri.com/manuscripts/141952.pdf&ved=2ahUKEwjE2Iz238vzAhVTgMYKHQLKCRMQFnoECCgQBQ&usg=AOvVaw2ez2CptoTUYljYPvoDN4Ha
Selection of audit team members. Clean energy regulator. http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
-ALMODIEL, Chencel-Annmae F. (2019-105222)
1/2
ReplyDeleteInternal auditing is defined by the Institute of Internal Auditors as "an independent appraisal activity within an organization for the review of accounting, financial, and other operations as a basis for service to management. It is a managerial control that measures and evaluates the effectiveness of other controls.” It focuses on the review and evaluation of management policies, procedures, and practices. There is historical background stated in the case study from the University of Richmond about Phase in Internal Auditing, which actually gives an understanding about the need to know how internal auditing and operational auditing are being important to the current industry because it addresses the needs of management to improve its operations, organizational structures, audit methods, and factors that are vital to the audit's success. This is regarded as a tool for providing solutions to problems and mitigating the risks that organizations will face. By reviewing internal policies and procedures, identifying risks, and forming a team that can make recommendations that are most useful to management, operational auditing improves enterprise efficiency.
(1) What is the significance of appointing the right audit staff members?
In recent years, auditing committees have taken a traditional approach that is limited to financial and statistical data analysis, but as many of the largest business enterprises have swept this idea, internal auditing has advanced its operations and focus beyond the traditional. Auditors with knowledge and skills are important, but having a diverse set of skills is advantageous for management practices. Every staff member involved in the audit process must be well-versed in the organization's history, structures, goals, and methods of operation. The auditor will be the salesman of ideas and information to the field by discussing interpretations to the central office communications (Miller, 1957). Organizations will become more efficient and effective if all available resources are used and all new rules and policies are properly communicated to all levels of the organization. Staff members conduct audit reviews with management and external auditors, including matters that must be communicated to the committee under generally accepted auditing standards (CFA Institute, 2021) It is also critical that top-level management accept the report and provide feedback to the auditors who are doing the job, because effective operational auditing recognizes that management is done through people. As a result, a spirit of enthusiastic "team play" is required (Brink, 1957). Furthermore, staff members must be performed by competitive and skeptical individuals who are dedicated to the betterment of the organizations in order to make recommendations and suggestions. When observing organizational operations, they should also have a management perspective, as this will gradually broaden their knowledge and benefit the organization as a whole. Auditors could better serve management by broadening the scope of his audits. As a result, appointing the right audit staff members falls under the category of guaranteeing that the audit plan is carried out efficiently.
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ReplyDelete(2) At what phase when do audit teams hire staff members?
Internal auditing emphasis is now on constructive service to management with the auditor himself a member of the "management team." (Miller, 1957). Auditing will not be performed and completed by a single member of top management. An organization should have a team that contributes to the process of conducting audits and ensuring that these processes are carried out properly. Staff members are hired by audit teams prior to the start of all phases. A spirit of objectivity and teamwork is essential. Members should work to improve the organization in the future, and creating an effective organizational structure by establishing policies and standards also helps managers motivate their employees to work harder and smarter. Auditing is divided into four phases: planning, fieldwork, reporting, and follow-up. It should be noted that all audit members are aware of how these phases are carried out. Identifying problems and opportunities to suggest solutions by analyzing the enterprise's current situation, executing the proposed solutions to determine whether the outcome will be favorable or unfavorable for the enterprise, assessing the system's effectiveness, and finalizing the solutions that will be implemented. These are the steps that the audit team should consider when working through the various phases.
The industry is currently evolving, and managers must compete for the business overall success. Proper hiring and placement of people within organizations is critical for ensuring that all individuals within organizations are doing their best for the betterment. It is also critical that auditors do not confine themselves to their offices, reviewing reports and proposing solutions. They should also observe the people with whom they work by communicating with them and visiting them on the job site. They should examine all phases of the organization and keep an eye on management at all times. This will improve the outcomes they provide to the organization.
REFERENCES:
Chartered Financial Analyst Institute. (2021). Audit Committee Role & Responsibilities. https://www.cfainstitute.org/en/advocacy/issues/audit-committee-role-practices#sort=%40pubbrowsedate%20descending
The Institute or Internal Auditors. (1957). Statement of the Responsibilities of the Internal Auditor.
Brink, V. Z. (1957). The Internal Auditor joins the Management Team. The Internal Auditor, XIV. p. 14.
Miller, R.W. (1957). Operations Auditing, A Study of the Newest Phase of Internal Auditing [Master’s Thesis, The University of Richmond]. http://scholarship.richmond.edu/masters-theses
Alcantara, Shiela Mae D. – 2019-103506
1. What is the significance of appointing the right audit staff members?
ReplyDeletePutting together the proper audit team is the first step toward high-quality audits. Appointing the right individual for a specific job is significant for an organization to help obtain its goals. Teams improve audit effectiveness because they share their knowledge and expertise while sharing the work by allocating audit sections to team members. According to the American Institute of Certified Public Accountants (AICPA), hiring any individual such as a plan auditor is considered a fiduciary function, and they should exercise the use of care and prudence. Plan administrators should prioritize the selection and take caution at all phases of the auditor selection process.
The audit committee is in charge of appointing, compensating, and supervising the auditor's job. In compliance with the criteria of NGER Audit Determination Division 2.2, the audit team leader must ensure that the audit team members have the necessary knowledge, abilities, and availability to better equip for, carry out, and prepare an audit report. Having the right audit staff members provides assurance that they will conduct a quality audit in accordance with the generally accepted accounting principle (GAAP). This guarantees the organization to establish an improved quality and efficient audit work, and provide a degree of stability in order to avoid compromising the audit quality. It is important to select the right audit staff members through a thorough due diligence procedure in which the emerging team is knowledgeable, effective, and complementary because it will have an impact on audit quality as well as how teams are established.
According to Miller (1957), when appointing audit staff members, one must have these qualities including experience and professional competence; constructive thinking ability; command respect by reason of fairness; thoroughness and speed; ability to think in terms of management at all levels; avoidance or ‘’policeman," "ivory tower" or "superior creature’’ attitude; and the ability to express ideas clearly "in terms of the particular audience.". With these qualities, the staff members along with their team can perform a value-driven collaboration that would be beneficial to the organization as a whole. In addition, Davis (1951) established a staff independence concept that audit staffs should adhere to. He stated that the ability of staff subordinates to recommend or take whatever staff action is required by the situation without fear of a conflict of ideas between a staff executive and his line superior jeopardizing the latter's position determines the extent to which the responsible line executive receives competent, truthful advice and assistance from them.
2. At what phase when do audit teams hire staff members?
ReplyDeleteThe selection of audit team members is a crucial component of the planning phase. Along with the planning process, audit staff is being selected to form teams and engage in the operation of the organization. When hiring staff members, audit committee should begin at the top of the funnel and work their way down. It is important to established a good audit team at the beginning of the audit phase to avoid delay and minimize organizational costs. According to Paredes et. al (2017), they discovered that auditor changes at the end of the year are linked to longer reporting delays and worse audit quality. When there is a hiring lag between the notification of the predecessor auditor's departure and the employment of the successor auditor, they find that both audit fees and audit report delays are higher.
According to Mints (1954), during the employment of departmental operations audit in Lockheed Corporation, it is crucial to determine if the interviewing function influences the applicant's judgments about general appropriateness for employment, suitability for technical qualification exams, and job placement. The management also wants to know if interviews are completed promptly and result in positive public relations. During the recruiting process, auditors must consult with department heads and managers to determine who initiates the request for personnel. The purpose of the conversation was to acquire a clear understanding of these managers' policies and standards for recruiting new workers. The physical environment of the hiring process was also inspected and the management is guaranteeing the following: effective use of available space; adequate application facilities; and attractive soundproof interview rooms.
References:
American Institute of Certified Public Accountants. (n.d.). The importance of hiring a quality auditor to perform your employee benefit plan audit. Retrieved October 14, 2021, from https://www.aicpa.org/interestareas/employeebenefitplanauditquality/resources/planadvis ories/downloadabledocuments/ebpaqc-importance-of-hiring-plan-advisory.pdf.
Australian Government Clean Energy Regulator. (n.d.). Selection of Audit Team Members. Retrieved October 14, 2021, from http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selecti on-of-audit-team-members.aspx.
Miller, R.W. (1957). Operations Auditing: A Study of the Newest Phase of Internal Auditing. [Master's Theses, University of Richmond]. Accessed October 14, 2021, from https://scholarship.richmond.edu/cgi/viewcontent.cgiarticle=1789&context=masters-theses.
Paredes, A., Rama, D. & Wheatley, C. (2017). The Timing of Auditor Hiring: Determinants and Consequences. Accounting Horizons, 31 (3): 85–103. Retrieved October 14, 2021, from https://doi.org/10.2308/acch-51732.
Udeh, I. A. (2015). Audit Team Formation. Journal of Finance and Accountancy, Vol. 19, page 2. Retrieved October 14, 2021, from https://www.aabri.com/manuscripts/141952.pdf.
MACANIP, JOANNA ELAINE (2019-103856)
CBET-01-501A
1. What is the significance of appointing the right audit staff members?
ReplyDeleteAn auditor is a professional that is responsible for evaluating some aspect of a project, business, or individual. They are often employed in the task of determining the level of efficiency present in the production process of a business, and the veracity of the financial records of the business. Along with all of these, they are expected to make recommendations regarding the correction of negative conditions that currently impact the organization.
Hence, it is very important to appoint the right auditor and audit staff members in the operation. This is to ensure that they are capable of doing their duties and responsibilities. Having their required skills and techniques, they can provide independent assurance that an organization’s risk management, governance, and operational control processes are operating effectively. The appointed auditor should be independent from the company so that the audit will not be influenced by any relationship between them. The auditors are expected to give an unbiased and honest professional opinion on the financial statements to the shareholders. Maintaining independent audit committee members is crucial to ensure effectiveness. The members must be able to exercise their own judgment and maintain stable communication with their team. Furthermore, having a professional skepticism or a questioning mind should be possessed in order to optimize the accuracy, transparency, and credibility of information.
Choosing the right operational auditor is an important decision. They should deliver much more than business compliance. Audit staff members must bring the right combination of qualifications, experience, technologies, and approach to the task. They should be the right people with the right mindset carrying their own expertise in auditing.
2. At what phase when do audit teams hire staff members?
Audit teams hire their staff members during the first and foremost phase of operational audit which is the selection phase. Selection is the process of choosing from the candidates, from within the organization or from outside, the most suitable person for the current position or for the future positions (Harold Koontz). It simply means that this is when the appointment of competent auditors occurs. Aside from that, this is also the phase of checking the feasibility of the audit plan and checking the request of the audit if there is any to avoid any disruption in the existing operation.
This phase involves making a judgment, not about the applicant, but about the compatibility or fit between the applicant and the job. This will happen by considering the knowledge, skills and abilities, and other characteristics required to perform the offered job. Therefore, the selection phase is an important process and shall be taken seriously because hiring good resources can help increase the overall performance of an organization. Moreover, an effective selection not only fulfills the requirements of a job but also ensures that an organization will continue to maintain its commitment to providing equal opportunity to employees.
REFERENCES:
CBIZ MHM. (2018, May 11). Characteristics of an Effective Audit Committee. https://www.mhmcpa.com/insights/article/characteristics-of-an-effective-audit-commitee-1
iEduNote. Definition, Steps in Selection Process. Accessed October 13, 2021. https://www.iedunote.com/selection-process
HEDREYDA, HILARY N.(2019-103876)
Auditor roles are critical for achieving and promoting the company's overall goal. They are tasks and require not just finding fault in the operation but closely observing and examining operating controls and standards. According to Miller (1957), "operations auditing is performed by competent and imaginative people who are devoted to the betterment of the whole organization." They identify the strengths and weaknesses of the operational activities and make recommendations and suggestions that management could take. A successful audit result depends on the auditors who do the work. That’s why appointing the right audit staff members is very important. Competent auditors are needed in the team as they will be dealing with different activities of the business. They will assess the risks that the operation is exposed to and the efficacy of risk management controls, as well as the gaps and shortfalls in the processes. Also, they evaluate internal controls and ensure that the organization is complying with relevant policies and laws. However, choosing the right auditor that could assume the responsibilities for the management function could be challenging. That’s why it is the higher-ups' task to make sure that the auditors have objective and impartial judgment and maintain strong ethical standards and integrity.
ReplyDeleteMoreover, hiring the audit staff members relies on the team leader, and it is commonly done in the preparation stage. Though there are four common phases of auditing, known as planning, execution, reporting, and follow-up, it is before those entire auditors are hired. The audit team as a whole must have combined skills and knowledge that would allow them to carry out the audit. They have an important task of improving the efficiency of the operations of the business and providing perspective on how the business could make it in the long run.
References:
Murdock, H. (2017). Operational Auditing: The Principles Techniques for a Changing World. CRC Press.
Miller, R. (1957). Operations auditing, a study of the newest phase of internal auditing. [Master’s theses, University of Richmond]
BUCAL, RINA P. (2019-102462)
The significance of appointing the right audit staff members
ReplyDeleteAuditing starts when the work of an accountants ends. Operational Auditing refers to the process of evaluating a company’s operating activities. Internal auditors are tasked to provide independent and objective evaluations of company financial statements and operating business activities. They assess the use of the resources of the company if it has been used efficiently and wisely.
Appointing the right audit staff members will play a significant role in assessing the company activities to develop an audit plan. A right audit staff member must obtain objectivity and independence from management to properly carry out his operations auditing responsibilities (Miller, 1957). Appointing a right member on its specialization in the field will make the work more manageable because of familiarity. The audit member must be competent, imaginative, and devoted to company improvement (Miller, 1957).
The audit staff will be appointed to review significant accounting and reporting issues and recent professional and regulatory pronouncements to understand the potential impact on the financial statement. Overall, having a good staff member will be beneficial to the betterment of the organization. Their analysis will be the basis for how the company will act and develop an audit plan. Lastly, they will help the company forecast the potential risk that may arise and prevent it.
The phase when do audit teams hire staff members.
The time where the audit teams hire staff members is in the planning phase. The audit team will conduct an assessment near the end of each calendar year in the selection phase. They will base their decision to hire audit members according to the assessment that has been made. So, in the planning phase, they will welcome new staff members who are qualified for the position. Those newly hired are expected to be skillful, knowledgeable, eager to learn, and most importantly, have a good attitude. The new hired will be informed about the goal and objective of the audit team. In conclusion, the audit leader must recruit a new audit staff to ensure that the person who will be hired deserves the position and possesses the characteristics that will contribute to the audit team’s success.
Reference:
- Audit Committee Role & Responsibilities. (n.d.). CFA Institute. Retrieved October 15, 2021, from https://www.cfainstitute.org/en/advocacy/issues/audit-committee-role-practices#sort=%40pubbrowsedate%20descending
- Audit Phases | Internal Audit | West Virginia University. (n.d.). West Virginia University Internal Audit. Retrieved October 15, 2021, from https://internalaudit.wvu.edu/audit-services/audit-phases
- Miller, R. W. (1957). Operations auditing, a study of the newest phase of Internal Auditing. [Degree Master of Science in Business Administration, University of Richmond] https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses
- What Is an Operational Audit? (n.d.-c). GoCardless. Retrieved October 15, 2021, from https://gocardless.com/en-us/guides/posts/what-is-an-operational-audit/
Mangilog, Anthony C. 2019-104415
Written Assignment #2
ReplyDeleteSalutim, Hershey Mae D.
An audit team is a self-contained unit within a company that assists management in achieving its goals by assessing the risk and control environment. An audit team is like a partner to a business, the audit team should have a harmonious relationship to their clients by having the right attitude and cooperating witb them so that it will lead to a high chance of successful audits. (Wright, 2019)
Auditors need staff audit members when they audit a client’s company. Staff auditors look over a company’s operational and financial systems to make sure they’re up to industry and federal standards. They also look over your financial statements and accounting books to see if the information is correct. A great audit team should make an attempt to attract or discover talented personnel. To cover the essential skill set, the Audit Team and its employees must be composed of persons who are knowledgeable or experts in several fields such as insurance practitioners, taxation, legal, or corporate experts (Clean Energy Regulator, n,d.). When the specified kills are not available in the internal resourcing to meet the need, the Audit Team may recruit an audit staff member who is directly employed by the firm or hire a third party to provide an unbiased judgment on the company's financial report. (JobHero, n, d )
Staff members should be hired by the audit team during the planning stage, as this is critical at this point. When hiring or appointing staff members, the team leader should make sure that his or her members are capable of doing the job; they should have the information, abilities, and attributes necessary to provide a successful audit report. Because the majority of the documents are in spreadsheet format, auditors' staff should be spreadsheet experts. They should also be mindful of and attentive to every detail, as one wrong mistake could jeopardize the work. (JobHero, n, d.). It is critical to appoint the correct audit staff members in order to avoid wasting time and effort, as well as the clients' faith in the audit team. By employing the proper people, you can be confident that they are skilled and capable of completing their assigned tasks on their own, allowing other team members to focus on their own tasks and reducing the amount of time and effort spent correcting mistakes made by inexperienced employees.
To summarize, it is critical to hire the correct staff member for the audit team in order to provide a high-quality audit report that will satisfy and meet the needs of the clients. It's also critical to hire during the planning stage since once you know what the client's bottom line is, you'll know who you need for your members, and hiring during the planning stage makes it easier to prepare for the actual Audit planning.
References.
Wright, A. (2019). 5 Traits of Successful Audit Teams. Retrieved from Google. https://www.auditboard.com/blog/5-traits-of-successful-audit-teams/
JobHero. (n,d.). Staff Auditor Job Description. Retrieved from Google. https://www.jobhero.com/job-description/examples/accounting/staff-auditor
Clean Energy Regulator. (n, d.). Selection of audit team members. Retrieved from Google. http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms and resources/Audit determination handbook/Selection-of-audit-team-members.aspx
1. What is the significance of appointing the right audit staff members?
ReplyDeleteAudit staff members are those who perform audits for the company's operations, finances, and regulatory compliance. They examine corporate processes and controls and provide recommendations for changes, maintain good working ties with management and the auditing team, and completes specified audit tasks in a timely and efficient manner. Appointing the right audit staff members is also one of the crucial parts in auditing. It is like hiring an employee to your company, it needs an undertaking to verify who is eligible for a particular position. In terms auditing, it needs a thorough understanding or analysis to appoint a suitable audit staff that will manage the audit phases. An audit staff should be capable enough to perform comprehensive tasks who is competent, independent, responsible, and inquisitive. Internal auditors themselves assess what is vital in the staff man to be portrayed in a positive light. Experience and professional competence; constructive thinking ability; command respect by reason of fairness; thoroughness and speed ability to think in terms of management at all levels; avoidance of "policeman" "ivory tower" or "superior creature attitude”; and the ability to express ideas clearly "in terms of the particular audience" are among the qualities mentioned in a brief resume. The last-mentioned attribute--that or being able to adjust, effectively to the level or the audience--was thought to be particularly important to supervisors and managers. These characteristics are vital to the success of the operation’s auditing; without them, audit is merely a verification of mathematical balances (Miller 2017). Audit staff is also the company’s assets because it is an advantage for the company to have an audit staff who’s efficient in performing his/her tasks. An audit staff affects the entity as a whole, his/her decisions is the dependence of the effectivity and efficiency of the entity’s operations as they are the one who monitors the company’s performance and maintains the consistency of the company in its operations. Therefore, appointing a right audit staff could bring an impact in the company’s credibility and sustainability.
2. At what phase when do audit teams hire staff members?
ReplyDeleteThere are (2) phases where audit teams hire audit staff members: Selection and Planning phase. Selection phase is an initial phase of conducting an audit wherein internal audit conducts a University-wide risk assessment near the end of each calendar year. Based on the findings of this evaluation and the department's available resources, we construct the audit plan for the next year. Before the audit plan is carried out, the Chancellor and the Kansas Board of Regents' Fiscal Affairs and Audit Committee evaluate it. After constructing and evaluating an audit plan, the internal audit team gathers relevant background information and contacts the client. Auditors engage with University leadership and clients to identify risks and to define the audit's objectives and scope, as well as the fieldwork schedule and report dissemination. This phase is called planning phase.
Based on my observations, these are the phases where audit teams need an adequate workforce. These phases require great teamwork because an audit plan is starting to build and evaluate. Audit staff during these phases should have substantial knowledge which is necessary in formulating an audit plan. However, while hiring audit staff to complete the needed personnel in conducting an audit, it is still important to hire an expert audit staff that has the knowledge, skills, and availability which is essential to adequately prepare for, conduct, and prepare the audit report (Clean Energy Regulator, n.d.). Additionally, the audit team leader should enforce the NGER regulations, that once an audit staff was hired, they are considered as complete part of the audit team and are thus subject to the same independence, quality control, and conflict of interest standards as the other audit team members (Clean Energy Regulator, n.d). Moreover, during planning phase, it must be guaranteed that audit staff members are sufficient enough in conducting the fieldwork, which indicates that audit teams will hire additional manpower, if necessary.
Resources:
Miller, R. W. (1957). Operations Auditing: A Study of the Newest Phase of Internal Auditing [Master's Theses]. The University of Richmond.
Grabillo, M. A. (2021). Operational Audit: What are its Phases? https://markgrabillo.blogspot.com/2021/10/operational-audit-what-are-its-phases.html
Clean Energy Regulator. (n.d.). Selection of audit team members. http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
Thea Sofia A. Barabicho
ReplyDeleteCBET-01-502A
1. What is the significance of appointing the right audit staff members?
Jim Collin once said in his classic book Good to Great, “...to build a successful organization and team, you must get the right people on the bus.” The burden of assessing and selecting the team members lies with the audit team leader. However, the whole audit team must let themselves be involved in the selection process to evaluate the skills and experience needed in the preparation of the audited financial statements. There are a lot of factors that should be considered in appointing the right staff members as auditing is a keen process which involves a great practice of objectivity and independence. Once tampered, it can render the whole process ineffective, biased, and unreliable. Miller (1957) stressed in a poll conducted by the Institute of Internal Auditors that the most important factor to achieve a successful auditing is the competency and characteristics of the staff. Through this, it could be implied that the staff is the backbone of a successful company because they are the one who does the work first hand. In addition to that, he also mentioned that a competent internal auditing staff must have a wide range of technical liabilities and practical experience. It is said through time that no man is an island. In order to function effectively, we must interconnect with other people. Truth be told, there is no one in the world who can do all things efficiently, thus, arises the need to communicate with others who have the expertise. With this, maximum productivity can be achieved as people are working in line with their skills and at the same time, proper delegation of tasks are made.
2. At what phase when do audit teams hire staff members?
Audit teams hire staff members at the first phase of the audit process which is the planning phase - to be more specific, the selection phase. It is the procedure of choosing candidates within and outside the organization and filtering the most suitable and competent employee to work for a current position. Hiring staff is done prior to the beginning of all the phases. It must be decided carefully because the success of the audit will primarily depend on the members composing the team. The hiring and selecting of the audit staff should be treated analytically and essentially in order to get the right people on the bus. The skills and capabilities of the potential audit staff members must be carefully assessed
References:
J. Collins (2001). Good to Great. Retrieved October 12, 2021, from https://principus.si/2021/04/03/jim-collins-good-to-great/
Miller, R.W. (1957). Operations Auditing, A Study of the Newest Phase of Internal Auditing [Master’s Thesis, The University of Richmond]. http://scholarship.richmond.edu/masters-theses
Thea Sofia A. Barabicho
ReplyDeleteCBET-01-502A
1. What is the significance of appointing the right audit staff members?
Jim Collin once said in his classic book Good to Great, “...to build a successful organization and team, you must get the right people on the bus.” The burden of assessing and selecting the team members lies with the audit team leader. However, the whole audit team must let themselves be involved in the selection process to evaluate the skills and experience needed in the preparation of the audited financial statements. There are a lot of factors that should be considered in appointing the right staff members as auditing is a keen process which involves a great practice of objectivity and independence. Once tampered, it can render the whole process ineffective, biased, and unreliable. Miller (1957) stressed in a poll conducted by the Institute of Internal Auditors that the most important factor to achieve a successful auditing is the competency and characteristics of the staff. Through this, it could be implied that the staff is the backbone of a successful company because they are the one who does the work first hand. In addition to that, he also mentioned that a competent internal auditing staff must have a wide range of technical liabilities and practical experience. It is said through time that no man is an island. In order to function effectively, we must interconnect with other people. Truth be told, there is no one in the world who can do all things efficiently, thus, arises the need to communicate with others who have the expertise. With this, maximum productivity can be achieved as people are working in line with their skills and at the same time, proper delegation of tasks are made.
2. At what phase when do audit teams hire staff members?
Audit teams hire staff members at the first phase of the audit process which is the planning phase - to be more specific, the selection phase. It is the procedure of choosing candidates within and outside the organization and filtering the most suitable and competent employee to work for a current position. Hiring staff is done prior to the beginning of all the phases. It must be decided carefully because the success of the audit will primarily depend on the members composing the team. The hiring and selecting of the audit staff should be treated analytically and essentially in order to get the right people on the bus. The skills and capabilities of the potential audit staff members must be carefully assessed to make the process and audit rendered successfully.
References:
J. Collins (2001). Good to Great. Retrieved October 12, 2021, from https://principus.si/2021/04/03/jim-collins-good-to-great/
Miller, R.W. (1957). Operations Auditing, A Study of the Newest Phase of Internal Auditing [Master’s Thesis, The University of Richmond]. http://scholarship.richmond.edu/masters-theses
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ReplyDeleteSignificance of Appointing the Right Audit Staff Members
It's not just a product, a process, or a service that makes a company genuinely great; it's the people that work to make it happen. Choosing the right staff members is the most important component when it comes to the growth and success of a business. According to PPIAF: Labor Tool Kit. (n.d.) a “staff audits give an up-to-date analysis of the workforce and provide the basis for subsequent benchmarking and workforce analyses. They also provide the necessary database for accurate estimation of the costs of alternative severance and pensions strategies, and for the eventual disbursement of payments to workers.” Working as an audit staff is not just for all, it needs a person who is capable of doing their tasks and responsibilities correctly.
In 1953, the Institute of Internal Auditors conducted a poll about the order of importance of the factors they considered most important to successful internal auditing. Based on the result in Chapter IV of the thesis study, Competency and characteristics of staff members drew the most votes and more comments than any other category. In addition, Miller (1957) also added that audit staff members should also possess “Experience and professional competence; constructive thinking ability; command respect by reason of fairness; thoroughness and speed ability to think in terms of management at all levels; avoidance of "policeman" "ivory tower" or "superior creature attitude”; and the ability to express ideas clearly "in terms of the particular audience" The last-mentioned attribute--that or being able to adjust, effectively to the level or the audience--was thought to be particularly important to supervisors and managers.” Those traits are critical to the effectiveness of the operation's auditing, this also just proves that it is vital to hire a skilled and remarkable employee to help the overall efficiency and effectiveness of the company.
MARANAN, PATRISHA C., 2019-100624
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ReplyDeletePhase When Audit Teams Hire Staff Members
According to Wright (2019) “the key to building and sustaining effective teams lies in understanding that successful teams stem from successful individuals. Building a great internal audit team doesn’t happen overnight, but understanding the traits of high-performing audit teams is an essential step toward strengthening these areas in your groups and gradually improving your department as a whole.”
It is necessary to establish a team before developing effective and efficient programs. The audit team's audit staff members are being chosen as part of the planning stage. The audit team leader is in charge of selecting team members. Nevertheless, the audit team as a whole should be included in the process of evaluating the team's total skills, talents, knowledge, and experience, as well as if they are competent enough to execute and conduct the engagement. Moreover, audit team leaders must have a full understanding of the necessary and unnecessary traits and features of an effective audit team.
CONCLUSION
Choosing the right staff member is one of the most important factors to consider, for it will highly contribute to the success of the business. Recruiting the wrong person may result in a lot of unnecessary stress and difficulties that might hinder a company's growth. That is why it is important to hire a perfect and suited employee for the job.
REFERENCES:
Miller, R. W. (1957, August). Operations Auditing: A Study of the Newest Phase of Internal Auditing. Accessed October 15, 2021, from https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses
PPIAF: Labor Tool Kit. (n.d.). MODULE 3 Assessment:: Staff audits. Accessed October 16, 2021, from https://ppiaf.org/sites/ppiaf.org/files/documents/toolkits/LaborToolkit/Toolkit/module3/staff_audits.html
Wright, A. (2019, May 19). 5 Traits of Successful Audit Teams. Accessed October 16, 2021, from https://www.auditboard.com/blog/5-traits-of-successful-audit-teams/
Clean Energy Regulator. (n.d.). Selection of audit team members. Accessed October 16, 2021, from http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
MARANAN, PATRISHA C., 2019-100624
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ReplyDelete(1) What is the significance of appointing the right audit staff members?
Operations auditing encompasses the whole business in its processes. It is where the top management gets the recommendations on how to improve the flow of the business in the future and the significant steps to take in order for the business to overcome its shortcomings. As it involves a review of activities performed in a program or process in the pursuit of its objectives by individuals, who are often supported by a variety of tools (Murdock, 2016), every staff member of it plays a significant role and is critically appointed by the top management. The competency of the selected staff members makes the auditing process and its results more credible to the management and accurate as to its information.
Appointing the audit staff members is a crucial part of the auditing process as they will be the pillar of the whole process. It is significant as the whole process of auditing will depend on the selected staff members. Their competencies and experiences as their back-ups will create more effective selections of steps to be recommended to the management. Also, the variety of the staff members selected will create more diverse ideas and insights that will significantly contribute to the phases of the auditing process of an entity. As Sgarro quoted, “To be with the right person cannot solve all your life's problems, on the other hand, being with the wrong one can create many.” It is the same in auditing, selecting the right staff members can solve the problems and risks in the business operations and can even create opportunities for the business. On the other hand, having the wrong staff members can not only hinder the progress of the operations, but they can also create more problems for the business that can result in its downfall. Moreover, the staff members selected are the ones to test the business practices, come up to conclusions in regards to the business operations, and the one to give reasonable recommendations to the top management to further drive the business to its success.
Selecting the right staff members in conducting the auditing process is essential as they will be the people responsible to analyze the shortcomings and advantages of the current business operations and the people who are responsible for the future steps to take towards the improvement of the business as a whole.
Talabong, Ela Rain F. (2019-102788)
CBET-01-502A
(2/2)
ReplyDelete(2)At what phase when do audit teams hire staff members?
To provide a simple, effective, and time-tested approach to organizing, performing, and communicating the results of the work done, operational auditing follows the traditional planning, fieldwork, reporting, and follow-up phases (Murdock, 2016). These phases of auditing are followed by most of the auditing departments to come up with the most reasonable recommendations for the management. Each phase has its tasks to be completed for the process to move forward to the next phase.
Out of the four (4) phases of auditing, the audit teams hire staff members at phase one which is the planning phase. As the planning process begins long before the actual audit begins (Murdock, 2016), it is most definitely where the gathering of the previous auditing plan, resources needed, identifying the start of the plan, the announcement of it, and the picturing of the auditing process as a whole. The resources that need in the plan are not only particular to the information that will be provided by the business and the budget needed in the auditing process, but also the people needed in the auditing process. Selecting the staff members in the auditing team will be done in the planning phase so long that the Chief Audit Executive (CAE) sees the need for it. Moreover, the planning phase is the start so it is only appropriate that the staff members will be selected before starting the whole auditing process, that way, all of the staff members will be well-informed right from the start until the end of the whole auditing process. Also, the planning phase is where the previous auditing plan and details needed in the process are all collected and, thus, presenting what the previous procedure lacked and excessed with, showing what kind of staff members are needed and what is not. The QVALON Blog (2021) noted that the auditor meets with the management team during the preliminary stage to document relevant information. In other words, the start of the journey of an appointed staff member of the auditing team starts from there so it is only appropriate that the selection of the staff members in the auditing team should be right from the start of the planning phase, giving the sense of having a head start for the whole auditing process.
The auditing team selects its staff members on the starting phase so that every member will be well-informed of the whole process and no one will be behind anyone in the team. As Hale (n.d.) quoted, “coming together is a beginning; keeping together is progress; working together is a success.” Choosing the right staff members is the start of a successful auditing process and it is always at the starting phase to nurture the camaraderie of the members and work together towards success.
References:
Edward Everett Hale Quotes. (n.d.). BrainyQuote.com. Retrieved October 12, 2021, from BrainyQuote.com Web site: https://www.brainyquote.com/quotes/edward_everett_hale_121997
Miller, R. M. (1957). "Operations auditing, a study of the newest phase of internal auditing". Master's Theses. Paper 792. Retrieved October 12, 2021, from https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses
Murdock, H. (2016). Operational Auditing: Principles and Techniques for a Changing World (1st ed.). Auerbach Publications. https://doi.org/10.1201/9781315368733
QVALON Blog. (2021). Operational Audit Overview: Definition, Process, and Purposes | QVALON. Qvalon.com. Retrieved, October 12, 2021 from https://qvalon.com/blog/operational-audit-overview-definition-process-and-purposes/
Right Person Quotes (16 quotes). (n.d.). www.goodreads.com. Retrieved October 12, 2021, from https://www.goodreads.com/quotes/tag/right-person
Talabong, Ela Rain F. (2019-102788)
CBET-01-502A
The success of every venture is not possible without manpower -- both intellectual commitment and manual labor -- that is why it is critical for companies to hire the most qualified candidate for a particular job position, no matter how plain or complex it is. The same also applies in the search for the right audit staff members in the conduct of operational auditing.
ReplyDeleteGiven how extensive and challenging the audit process is, and how the management heavily expects audit findings to be materially useful in the making of operational decisions, the burden in selecting the best fit arises. Companies that are seriously in need of professional guidance, most especially those which could be covered by performing audits, should really take a lot of considerations before picking their respective audit staff members, as it's in this choice where their future business actions could be depended on.
But what exactly are the standards when choosing auditing staffs for the company? Here, the auditor qualifications mentioned in the study done by Russell William Miller, centering on operations auditing as the newest phase of internal auditing will be enumerated and explored as to their significance in the actual auditing work.
To begin with, many clients are paying more attention as to the auditor's 'experience and professional competence'. If auditors are well-familiar of how a specific business actually operates, what exactly is occurring in the field or industry where it belongs, as well as the auditing technicalities that one is expected to master, there would be no room of doubts that would question their credibility and auditing capability. This broad business background primarily contributes to the reliability of their judgements and observations as the knowledge bases are rooted from their practical experiences, so whatever may the findings show -- whether favorable or not -- it will be reasonable enough in the eyes of the management.
Next in line, if managements wish to receive purely objective and unbiased audit reports, seeking for the ones that best exercise integrity, independence and objectivity shall be prioritized, for these are the qualities that effectively integrate validity, impartiality and transparency in the audit performances. However, as per the Institute of Internal Auditors, it could only be fully achieved when management renders full acceptance and support throughout its conduct.
ReplyDeleteMoreover, according to Miller, the auditors' ability to express ideas clearly in terms of particular audiences or that of being able to adjust effectively to the level of audience, was thought to be particularly important to supervisors and managers. Especially that the work requires collaborative efforts coming from the business owners, management, company employees, and auditors themselves, effective and versatile communication skills are both desirable and demandable. This will be useful for the gathering of detailed and complete information, and for bridging ideas between all levels of management.
Additional characteristics which are also brought up in the study are the auditor's initiatives, imagination, professional skepticism, thoroughness and speed, high morale spirit, and real enthusiasm to fulfill the mission at best. It has also taken into account that every audit staff members should have their own areas of specializations to better help management in [1] strengthening their business background, [2] supplementing them with comprehensive business knowledge, [3] developing their initiative judgement, and [4] in broadening their understanding of the company audit problems (Miller, 1957, p.66).
The recruitment shall be done most importantly in the preparation stage (Clean Energy Regulator, n.d.). This may be included in the pre-planning, or may refer to the planning phase itself, under appointment activities that are carried out before undergoing audit team briefing. As the scopes of the audit work could be fully determined in this phase, audit team will have the idea of the number of audit staffs needed and the required specialized skills that are extremely beneficial to the commencement of the fieldwork.
References:
Miller, R.W. (1957). Operations Auditing, A study of the Newest Phase of Internal Auditing (Master's Thesis, University of Richmond). UR Scholarship Repository. http://scholarship.richmond.edu/masters-theses
Clean Energy Regulator. (n.d.). Selection of audit team members. Australian Government. Accessed October 16, 2021 http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
Russel Bedford. (2018). The 7 Stages Of Planning An Audit. Accessed October 16, 2021 https://russellbedford.uk/news/the-7-stages-of-planning-an-audit/
-Ellen Grace B. Tanhueco (2019-100741)
1. What is the significance of appointing the right audit staff members?
ReplyDeleteEmployees are the ones who make practically any company what it is - they do the job and shape the culture. As a result, hiring is the most critical thing an organization performs, and getting it right pays out. Recruiting the right professional auditor will have a big effect in executing the job. The audit committee's major responsibility is to oversee the financial reporting process, the auditing standards, the organization's corporate controls system, and compliance with applicable laws. The audit committee should expect to analyze important accounting and reporting concerns, as well as current professional and regulatory declarations, to understand the potential impact on financial statements. To determine whether reports are comprehensive and accurate, you must first understand how management generates internal interim financial data. In a company, it is very essential to appoint or hire a staff that is knowledgeable enough to fulfill his/her work. Internal auditors also play an important role in establishing an organization's tone. They accomplish this by ensuring that their organizations create and implement a code of conduct, as well as establish effective communication channels. Members of the audit committee must also be aware of what management is doing to ensure compliance with laws and regulations, as well as issues such as ongoing investigations and disciplinary actions. Some company`s hire an auditor with a special expertise. It is very important to hire an auditor who has the expertise, skills, experience, and capacity to do the job. It is not about hiring someone but putting someone who fits on the job and work efficiently and effectively. The committee should undertake a proper selection and appointment process as part of appointing wherein the right staff will contribute meaningfully to the success of the business.
LIGUTAN, JAQUELINE V. (2019-104055)
PART 1 OF 2
2. At what phase when do audit teams hire staff members?
ReplyDeleteThe selection of audit team members is an important part of the planning stage. Every audit needs planning, from defining the scope and goal to establishing audit stages to achieve the goal. Internal audit meets with management at the beginning of the audit to review the audit's purpose, risk factors, and other logistics. An audit team is a separate function within an organization that assists management in achieving its goals by evaluating the risk and control environment. The planning phase includes management, and the details are documented in a planning and scoping memo. The audit team as a whole should be included in the process of evaluating the team's combined experience and skills and whether they are qualified to perform the involvement. The selection and hiring of audit staff must start at the planning phase before doing the actual work or the fieldwork. Once, you already have those people around you at the very beginning, there would be no hassle at the auditing because the staffs has the knowledge before doing the job. The audit team leader bears overall responsibility for team member selection. The important factor to creating and sustaining effective teams for internal audit department management and hiring managers is understanding that successful teams arise from successful individuals. In conclusion, the hiring off staff must be on the planning phase so that everyone will have a great connection with each other and adapt quickly to change.
REFERENCES:
Case Western Reserve University. (n.d). Audit Plan and Process. Accessed October 16, 2021.https://case.edu/auditservices/audit-plan-process
CFA Institute. (n.d). Audit Committee Role and Responsibilities. Accessed October 16, 2021. https://www.cfainstitute.org/en/advocacy/issues/audit-committee-role practices#sort=%40pubbrowsedate%20descending
Clean Energy Regulator. (n.d). Selection of Audit Team Members. Accessed October 16, 2021. http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
Wright, A. (2019, May 1). 5 Traits of Successful Audit Teams. Accessed October 16, 2021. https://www.auditboard.com/blog/5-traits-of-successful-audit-teams/
LIGUTAN, JAQUELINE V. (2019-104055)
PART 2 OF 2
What is the significance of appointing the right audit staff members?
ReplyDeleteIn a business venture, the key to success lies on its people in which the organization must recruit the suited individuals that would fulfill the workforce (HHS, n.d.). The concept of having the right persons would always equate to right outputs; hence, such concept implies the importance of hiring and attaining the right persons in any work under any context. Hiring these individuals would reduce the number of people that you would potentially hire in the future (Morris Bixby Group, 2017). When it comes to auditing, it is no different; however, it must be noted that the importance of having the right operational auditing team is much more significant as such results would be more impactful compared to other departments.
In my opinion, these are the reasons of why the right audit staff members are vital in the organization: First, it would produce correct output or reports. According to Eby (2017), companies are dependent on operational audit to obtain better value by improving the operational performance that the organization already has. Therefore, the information that the audit report should be correct as the decisions that the higher-ups would depend on the result of such audit. In addition to this, having the right person would result to a more reliable and trustworthy audit report as the audit team would be handpicked by the higher-ups to have a principled report. Second, it would greatly add credibility to the report as the audit staff members would be competent and have the appropriate attributes in relation to the profession. Regarding to this, credibility also translates to the intensity of how the audit report is being trusted by the organization as decisions would be based around such fact/s or report. Third, having the right audit staff would imply that they value the organization and, in return, would provide their utmost service and perform reasonably as they cherish the organization that they are practicing their profession in.
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John Patrick Abraham A. Bentulan (2019-106909)
CBET-01-502A
At what phase when do audit teams hire staff members?
ReplyDeleteIn my own judgment, staffing is usually done in the planning phase of an organization and/or project. Due to the preparation aspect of such phase, it is important to highlight the fact that every resource that is going to be used needs to be taken into account - along with these resources is manpower. Furthermore, Kalpana (n.d.), stated that the first step in the staffing process is the estimation of manpower requirements in which is argued to be in the planning phase of an audit as it is important to know that the audit may be done individually or with a group of people. However, since the audit process is tedious, it must be taken into consideration that additional staff members is inevitable. In line with this, the team may add another member in the middle of the audit process or the fieldwork phase; this is because managers are continuously engaged in performing the staffing function of an organization and/or project (Shabana, n.d.). In conclusion, hiring of staff members do not have a fixed duration as auditing is a very complex profession which require continuous judgment to the current resources that is being used especially in terms of manpower as human beings are primarily the ones who would process the information gathered.
References:
Eby, K. (September 19, 2017). Operational Audits 101: Process, Examples, and Checklists. Retrieved on October 15, 2021 from https://www.smartsheet.com/operational-audit- process
HHS. (N.D.). The key to maintaining organizational success. Retrieved from https://blog.hhs1.com/the-key-to-maintaining-organizational-success on October 15, 2021.
Kalpana, R. (n.d.). Staffing process: 9 important steps involved in staffing process. Retrieved on October 15, 2021 from https://www.businessmanagementideas.com/staffing/staffing-process-9- important- steps-involved-in-staffing-process/2346
Morris Bixby Group. (March 17, 2017). Why is hiring the right person essential. Retrieved on October 15, 2021 from https://www.morrisbixby.com/2017/03/17/hiring-right- person- essential/
Shabana, S. (n.d.). Staffing in an organization. Retrieved on October 15, 2021 from https://www.businessmanagementideas.com/staffing/staffing-in-an- organisation/4467.
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John Patrick Abraham A. Bentulan (2019-106909)
CBET-01-502A
(1) What is the significance of appointing the right audit staff members?
ReplyDeleteIndividuals who serve on an organization's board of directors play a key role in creating the tone of the business, therefore selecting the right audit staff members is crucial. The correct audit staff members are responsible for ensuring that a business performs ethically and adheres to laws and regulations. The financial reporting methods, internal controls, and independent auditors are all under the scrutiny of audit committees. The annual audit acts as a check on the company's financial reporting processes. The audit committee also serves as a venue for open and objective discussion of financial issues.
Assigning the appropriate audit staff members guarantees that the organization's financial statements are clear and trustworthy. It guarantees that the company has a comprehensive risk management process in place as well as adequate internal controls. Audit staff members are the source of conflict of interest and fraud, which is why choosing the proper person for the job is so important in auditing. Appointing the correct audit staff members is critical since they supervise financial reporting and accounting and keep track of accounting standards and principles.
Appointing the correct audit team is critical since they conduct audits and reviews, which include identifying risks, evaluating internal control design and effectiveness, designing and managing audit programs, work plans, and resource budgets, as well as fieldwork, testing, and data analysis. Prepare work papers and reports in accordance with audit plan procedures, with a high level of technical accuracy, grammatical accuracy, and structure, in accordance with IAC protocols and professional auditing standards.
Christian T. Casal (2019-103830)
In building an organization, the foundation must be sturdy enough to support the whole structure. They are the critical points of long-lasting success and continuous growth; it is essential to pick the right people for those pillars. Hiring a suitable person requires the assessment of the audit team, whether they need to hire or not. It does not only need the individual to be skillful but also to work with others as a team; a person cannot carry everything and expect a good outcome. I do remember meeting few people who have faked their resumes just to get the job. They got in, but as time went by, it started to show how they were neither well equipped nor suitable for the job. The same applies to an auditor as their objective is to successfully help the organization achieve its goal as best as possible.
ReplyDeleteAn auditor's job is to examine whether the operation within the organization is working efficiently and effectively. They would assess the current problems and the possible risk the company would face in the future. Also, give suggestions for development to have a further better performance. Countless opportunities can open up when it is well done by the auditor; they can definitely help the organization flourish. It was also said that “no business is an island”. It meant that it does not grow on its own; the contribution of teams within the organization helped it strive because they all have a common goal and the right set of skills. It takes a lot of time, effort and money to get a suitable person for your business, but in the end, it actually helps you save money. Instead of changing them from time to time, you do not need to because you choose the right candidate. The auditors can be as productive and give a great result if the teamwork is there; if everyone moves as one.
In the audit phases, every step has its own purpose and contribution in having the accurate result. The hiring of the audit staff happens in the most critical phase which is the planning. This is where the objective and range of the examination takes form. The hiring might take place before or after the planning which is called the selection phase. The audit team will first check whether they needed to hire a new staff or not. They would also be the one to interview the said staff to scrutinize if they have what it takes to be hired.
Finally, it may be concluded that every employee is essential and plays a specific role; they just have to be put in the right place with their strength.
Reference:
Top Five reasons why hiring the right person is essential. Morris Bixby. (2017, March 17). Retrieved October 16, 2021, from https://www.morrisbixby.com/2017/03/17/hiring-right-person-essential/.
ISIP, IRIS G. (2019-103614)
(2) At what phase when do audit teams hire staff members?
ReplyDeleteStaff members are hired during the planning stages. It is critical to have a team of leaders who are skilled and competent to carry out the important activities of auditing before the audit begins. You must plan what qualifications you will need for your audit throughout the planning process in order to have this audit team. One of your most valuable assets is your workforce. Hiring staff members occurs during the planning stages because it is critical to understand the quantity and types of personnel your firm requires to achieve its objectives before beginning the audit process. For every organization, specific goals must be met and created. These goals are met through the recruitment and use of various people's resources in various domains of employment. Every organization's most significant feature is manpower, which plays a critical part in completing tasks to achieve innumerable goals and carrying out diverse responsibilities while giving their all to the firm. This necessitates the recruitment of highly qualified and committed people who are best suited for each role listed in an organization.
It is critical for every organization's success to hire the proper people. As a result, the recruiting process must be precise in order to ensure the success and performance of the personnel selected, as productivity is dependent on experienced and qualified individuals in predicting job performance. In this regard, I believe that recruiting of staff members occurs during the planning stages since personnel selection is a critical component of an organization's growth, viability, and survival.
References:
CFA Institute (n.d.). Audit Committee Role & Responsibilities. Retrieved October 15, 2021, from https://www.cfainstitute.org/en/advocacy/issues/audit-committee-role-practices#sort=%40pubbrowsedate%20descending
Clean Energy Regulator (n.d.). Selection of audit team members. Retrieved October 15, 2021, fromhttp://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
Clarke (2018). What is an Internal Audit? Answers to Common Questions. Retrieved October 15, 2021, from https://linfordco.com/blog/what-is-internal-audit/
Christian T. Casal (2019-103830)
Significance of appointing the right inspection staff members
ReplyDeleteThe major function of a company's inspection commission is to offer information about fiscal reporting process, the inspection process, the establishment's internal inspection function, and compliance with applicable laws. To comprehend the implicit impact on fiscal statements, the inspection commission should anticipate to dissect important account and reporting enterprises, as well as current professional and nonsupervisory affirmations. To determine if reports are thorough and accurate, it's vital to understand how operation creates internal interim fiscal information. The commission meets with operation and external adjudicators to bandy inspection results, including matters needed to be notified to the commission under generally honored auditing norms. The commission is in charge of fiscal reporting controls, information technology security, and functional issues. The inspection commission is in charge of appointing, compensating, and supervising the adjudicator's job. Inspection panels hold separate meetings with external adjudicators to bandy issues that the commission or adjudicators believe should be bandied intimately. The commission also analyzes suggested inspection approaches and handles inspection collaboration with internal inspection workers. When an internal inspection function exists, the commission will examine and authorize the inspection plan, assess the function's staffing and association, and meet with internal adjudicators and operation on a regular base to bandy any issues that may develop.
The significance of hiring the correct inspection platoon is that the boards will be free of fraud charges because they appoint secure adjudicators who'll help the establishment come more effective and effective. It's also critical to elect the right inspection staff because they will be in charge of the overall operations of the business and one mistake can ruin the entire character of the company; therefore, the inspection commission must be conservative in appointing different auditing brigades in the company to avoid problems throughout the business deals.
Phase when do inspection brigades hire staff members
ReplyDeleteThe selection of inspection platoon members is a crucial element of the planning phase. The inspection platoon leader bears overall responsibility for platoon member selection. Still, the inspection platoon as a total should be included in the process of assessing the platoon's overall chops and moxie and if they're good to shoulder the engagement. In planning phase, Internal Audit meets with customer operation to identify pitfalls, define primary inspection objects, produce an inspection timeline, and negotiate inspection deliverables. Customer operation is advised to appoint a primary point of contact from their staff to help the inspection platoon and answer any queries that may arise. Customer operation is also advised to take advantage of this occasion to identify any unique enterprises that should be addressed in the inspection planning and to inform the adjudicators of any time restrictions that must be met throughout the inspection. Internal Inspection's purpose is to reduce the quantum of disturbance to being departmental conditioning as much as doable as a result of the inspection process. Still, some dislocation is necessary, and it's preferable to plan for it during this phase of the inspection. Customer operation representatives generally include the Dean or Director, Speaker or Department Heads, and Business Directors. The Internal Auditor develops a primary inspection program at the end of this step.
References:
• Audit Committee Role & Responsibilities. (n.d.). CFA Institute. Retrieved October 16, 2021, from https://www.cfainstitute.org/en/advocacy/issues/audit-committee-role-practices#sort=%40pubbrowsedate%20descending
• Audit Phases | Internal Audit | West Virginia University. (n.d.). West Virginia University. Retrieved October 16, 2021, from https://internalaudit.wvu.edu/audit-services/audit-phases
• Selection of audit team members. (n.d.). Clean Energy Regulator. Retrieved October 16, 2021, from http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
When it comes to the future growth and success of a business, the audit staff members that the business hires is one of the most important factors. Appointing the right audit staff members is essential for a company's operations' effectiveness, productivity, and cost-effectiveness. Staff auditors are accountants that examine a company's operational and financial procedures to ensure that it is in conformity with industry and federal requirements. They can also specialize in a variety of niches such as identifying and assessing important business risk areas, as well as implementing best audit and business practices in accordance with required internal audit statements, is the responsibility of this position (STAFF INTERNAL AUDITOR, n.d.).
ReplyDeleteThe preparation stage, also known as the planning phase, includes the selection of audit team members. Planning is, without a doubt, the most crucial aspect of an audit. It is the starting point where it is performed before the actual audit begins. It consist of auditable activities within an organization, such as accounts, processes, programs, and functions, as well as the risks associated with their ability to meet their goals. In line with the proverb from Murdock (2017), "Failing to plan is planning to fail," which means that we must plan in order to have a direction for achieving our goals and objectives, which must include the hiring of audit staff to allocate the budget of interest.
In conclusion, appointing the right audit staff members has a great impact in an organization’s success because it is responsible in assessing critical business risk areas, putting the best audit and business practices in place. Furthermore, in planning phase, it includes the hiring of audit staff members as part of the budgeting of the organization.
Murdock, H. (2017) Operational auditing: Principles and techniques for a changing world. CRC Press. Retrieved October 12, 2021, from https://e-rtu.online/pluginfile.php/286094/mod_resource/content/1/Operational%20Auditing%20The%20Principles%20%20Techniques%20for%20a%20Changing%20World.pdf
STAFF INTERNAL AUDITOR. (n.d.). Retrieved October 12, 2021, from https://www.zippia.com/staff-internal-auditor-jobs/
BATULAN, Anna Marie M. 2019-102079
1. What is the significance of appointing the right audit staff members?
ReplyDeleteAccording to the Companies Act, 2008, public companies and state-owned companies are required to appoint an audit committee. It states that, where the appointment of an audit committee is required, the audit committee must be appointed by the shareholders at every annual general meeting. Since all audit committee members have to be directors, the nominations committee must select professionally experienced and qualified directors to recommend to the shareholders for the appointment, since the shareholders have the authority to choose any director they see fit along with compliance with the requirements of the Companies Act.
According to the King IV Report on Corporate Governance for South Africa 2016, the vital key role of an audit committee is ensuring the effectiveness of the organization’s assurance functions and services, with a particular focus on combined assurance arrangements. Appointing the right audit committee is important because its purpose is to ensure accountability and transparency regarding the company. They should serve as the company's independent auditor to safeguard the integrity of its financial statements and internal controls because the company's operations may suffer if the audit committees do not have the necessary knowledge and skills in providing high-quality audits.
2. At what phase when do audit teams hire staff members?
According to the clean energy regulator, selecting audit team members is an important part of the preparation stage. The overall responsibility for the selection of team members rests with the audit team leader. However, the audit team as a whole should be part of the process of evaluating the combined skills and experience of the team and whether they are appropriate to perform the engagement. In addition, it is important to note that while it is at the audit team leader’s discretion to determine how the expert will be selected or hired, when the expert is brought into the audit team, under the NGER Regulations they are a full member of the team and are therefore subject to the same independence, quality control and conflict of interest situation requirements as the other audit team members.
As per the requirements of Division 2.2 of the NGER Audit Determination, the audit team leader must ensure that the members of the audit team have between them the knowledge, skills, and availability required to satisfactorily prepare for and carry out the audit and prepare the audit report. The hiring of staff members is held during the planning phase since this is where the overall audit strategy will be determined. To avoid any terrible consequences in the firm's operations, it is critical to hire audit members correctly and ensure that they are capable of carrying out their duties and obligations in order to assist organizations in achieving success.
References
Clean Energy Regulator. (n.d). Selection of audit team members. Accessed October 16, 2021. http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
Deloitte Corporate Finance. (2014). Audit Committee Resource Guide. https://www2.deloitte.com/content/dam/Deloitte/za/Documents/audit/za_ACRG_Revised.pdf
Bianca Marie Q.Aplacador
2019-106307
CBET-01-503A
Operations auditing, a study of the newest phase of internal auditing By Russell William Miller. This case study discusses about the old and new internal auditing phases. Auditors’ inherent human abilities to observe, reason, compare and arrive at judgements was also a starting point. These traits are important for auditors as the world are getting larger so as the problems and risk are getting more difficult to handle. This idea was made back at the age when internal auditing has an existing group or individuals who are familiar in the control concept, whose wrongly observed the organization’s activities on an informal basis, most of them are student or scientific management.
ReplyDeleteDiversification based on the study is the widely practiced business principles where the top management is in charge or responsible for the success of the business where he is engaged in the wide-variety of activities. The reports made by subsidiary are sent to top management where they examine the report if it is accurate and complete. Also, the reliability and usefulness of the data. They also get involve in the field activity to properly assess on what is situation of the organization. Top management needs more eyes and ears in terms of the operation of the business. These qualities can come up to a good internal auditing report.
As the new internal auditing concept as proposed by Russell William Miller, Internal auditing should give other services to management like providing effective way of conduct with fields, operations, reports, the provision of personnel for executive positions; and the furthering of the efficiency and economy of the outside audit. Not only providing internal auditing services like the appraisal of existing rules, procedures and policies relating to accounting and financial. Today’s internal auditors doesn’t live by the desk, they most likely to put their selves to action, go to field work to personally observe the operational process and progress. They used modern sampling techniques and appraised controls by reviewing all the phases. By doing such, auditor use personal observation, skills and knowledge from the past experience and imagining the ability to reason to the outmost. This resulting to the achievement or creative way of appraisal and which ultimately determines the quality of operations auditing.
- Villanueva, Don Luis M. (2019-102313)
The Auditing phases suggest in the study are as follows. First is the Pre-Auditing Survey, in which the auditor conducts a background study to the organization. The study involves the organization process like reviewing the organizational manuals and charts, policies, methods of operation, legal regulations and the flow of activities and functions itself. This phase, auditor will get to know more the organization and the previews problems that they encounter. Auditors will be familiarized with the technical problems and how to resolve it by reviewing the past auditing actions. the purpose or his background study is to obtain a broad over-all view point of the organization to be audited. The second phase is Preliminary audit Program Preparation. This phase focus more on planning. After the auditor examine and have the background study to the organization, it’s time for planning the perfect auditing action to resolve the risk and problems that they see through the assessment. This phase must be flexible in its nature and scope, also this phase, auditors got the chance to have questions and also knowing more of their client and rendering what is asked by them. The third phase is Auditors’ on-site activities. Preliminaries is like conference or meeting to formally start or introduce everybody. Followed by “walk-around” to familiarized the auditor to the flow of the operations. Records examination is done to examine and verifies the evidence for testing, this will help the auditors to be familiarized with the performance data are developed and summarized their accuracy and timeliness and their relation to existing standards or performance. Personal observation is one of ways on gathering evidence. This is useful to the auditors to be aware on his surroundings and assess and examine at the same time. In doing the reports, it should be fair and complete, including recommendations. The format of the report is expected to be usable to the management. The final phase is Highlights from selected actual audits. Much has been said of an abstract nature about the 'qualities of operations auditing. Some actual audits have been gleaned for highlights which illustrate some applications of internal auditing's newest phase. A phase which, on the whole, puts less emphasis on the comparison or analysis of records and stresses such techniques as personal observation or work being performed and personal interviews with employees.
ReplyDelete- Villanueva, Don Luis M. (2019-102313)
As per my reading, in Auditors' on-site activity phase is where audit team hire staff members. The qualified internal auditing group is fitted on his set position, it is not only because of their technical qualification but also, they are businessmen and members of the firm. They must be fully equipped and know what they are doing. The significant of appointing the right auditing staff members are to ensure to have the best quality, and sufficiency to the work. We want to appoint right staff members because we value the time and money, we all know that doing an audit is both timely and costly, in that way, we can eliminate excess time to make it useful that will result to save money if we safe time and resources. It is important to appoint right audit staff member to produce an effective output, that could be helpful to the organization to mitigate the risk and the problems. A competent internal auditing staff must have the wide range of technical abilities and practical experience. Financial and management auditing skills is needed to become effective member. The auditing staff must meet what the clients or management wants, in that way, the staff members must accomplish the assigned task to them on time and be productive in work. As well as the client of management must accept and support the actions taken by the auditors to their business. The staff also need to familiarized the in and out of the business to thoroughly understand the process. They are expected to have high moral spirit and enthusiasm. They are technically qualified to trace accounting and statistical data, also trained in the principles and management experience. They are intimately acquainted w1th the informal, as well as the formal, procedures and objectives of their company. They possess and independence and impartiality and seeking for growth.
ReplyDeleteReference:
Miller, S. (1957). Operations auditing, a study of the newest phase of internal auditing. https://scholarship.richmond.edu/cgi/viewcontent.cgi?referer=https://www.google.com/&httpsredir=1&article=1789&context=masters-theses
- Villanueva, Don Luis M. (2019-102313)
1.What is the significance of appointing the right audit staff members?
ReplyDeleteThe audit committee's goal is to help the council in carrying out its governance and oversight obligations in financial reporting, internal control structure, risk management systems, internal and external audit functions, and ethical accountability. The audit committee should undertake a comprehensive examination of the external auditor’s audit and management reports. The committee would next evaluate whether the issues mentioned in the reports warrant action by the local government and guarantee that suitable action is done. The audit committee is in responsible of selecting, paying, and supervising the auditor’s job. As a result, CPAs report directly to the audit committee rather than management. Audit committees hold separate meetings with external auditors to discuss issues that the committee or auditors think should be handled discreetly. The committee also examines suggested audit techniques and regulates audit cooperation with internal audit professionals. The committee will be formed after an internal audit evaluate and approve the audit plan, assess the function’s staffing and organization, and meet with internal auditors and management regularly to discuss any issues that may arise. While boards should seek members who can give a wide variety of competent viewpoints based on their experience and skills, board members must also be educated and fluent in financial and accounting terminology. This is very important for the audit committee. “Effective audit committee oversight is essential to investor protection and the functioning of our capital markets,” said then SEC Chair Mary Jo White. “The way audit committees exercise their oversight of independent auditors has evolved, and it is important to evaluate whether investors have the information they need to make informed decisions.”
http://2.At what phase when do audit teams hire staff members?
The selection of audit team members is a crucial element of the planning stage. The audit team leader has overall responsibility for team member selection. However, the audit team should evaluate the team’s general abilities and expertise and if they are qualified to conduct the engagement. According to Division 2.2 of the NGER Audit Determination, the audit team leader must ensure that the audit team members have the necessary expertise, skills, and availability to adequately prepare for, carry out, and report on the audit. Audit teams are generally interdisciplinary to cover the essential skills and knowledge and may comprise assurance practitioners, environmental scientists, and financial, legal, or business specialists. Where substantial shortfalls in skills or expertise are found and cannot be addressed through internal resources, the audit team may need an expert from outside the organization. Under the NGER Audit Determination, the expert becomes a member of the audit team and is subject to the same obligations as the other audit team members. The audit team leader must assess if the team has enough supporting resources, such as time, equipment, and personnel. For some engagements with complex topics, the audit team leader may be required to call in an external expert. The audit team leader might examine the audit team’s expertise and experience of the issue being audited to decide if an expert is necessary—the lower the degree of knowledge and experience, the more likely an expert would be required in the team. The risk of material of
PATRICIA LYNN GUAMOS 2019-103828
misstatement due to the complexity and significance of the matter under consideration—the greater the risk, the more likely that an expert will be required in the team—or the quantity and quality of other assurance evidence are expected to be obtained—the less evidence available, the more likely that an expert will be required in the team. It is critical to emphasize, while the method of selecting or hiring the expert is up to the audit team leader's choice, once the expert is brought into the audit team, they are a full member of the team. Therefore, they are subject to the same independence, quality control, and conflict of interest situation requirements as the other audit team members under the NGER Regulations.
ReplyDeleteThe appointment, function, and responsibilities of audit committees, Local Government Operational Guidelines, Time retrieved 4:00pm
https://dlgsc.wa.gov.au/department/publications/publication/the-appointment-function-and-responsibilities-of-audit-committees
(2021) Audit Committee Role & Responsibilities, CFA Institute, Time retrieved 4:17pm
https://cfainstitute.org/en/advocacy/issues/audit-committee-role-practices#sort=%40pubbrowsedate%20descending
PATRICIA LYNN GUAMOS 2019-103828
1. What is the significance of appointing the right audit staff members?
ReplyDeleteAppointing the right audit staff members is significant because they will be held accountable for the planning, fieldwork, testing and data analysis, evaluation of internal control design and effectiveness, identification of observations, preparation of an annual risk assessment, procedures and applicable professional auditing standards.
In order to ensure that the organization has hired the right staff members, they must conduct an interview, which allows them to assess how well people have been informed about their tasks, as well as their comprehension of the process and level of dedication.
According to Division 2.2 of the NGER Audit Determination, the audit team leader must ensure that all the hired staff auditors have the necessary knowledge, skills, availability to satisfactorily prepare for and conduct the audit, as well as to compile the audit report. The audit team as a whole, on the other hand, should also be included in the process of evaluating the team's combined talents and expertise, as well as whether they are qualified to undertake the engagement.
2. At what phase when do audit teams hire staff members?
Selecting audit staff members is an important part of the planning phase which is sometimes called survey or preliminary review stage.
During the planning phase, Internal Audit professionals obtain necessary background information and establish contact with the client. The auditor notifies the client of the audit, meets with organization management to discuss the scope and objectives of the examination, gathers information on critical processes, evaluates existing controls and plans the remaining audit steps.
Establishing the engagement's overall audit strategy and designing an audit plan are also both part of the planning phase for an audit. The audit of financial statements is aided by proper planning in a number of ways. First, assisting the auditor in appropriately organizing and managing the audit engagement so that it is completed effectively and efficiently. Following that, assisting in the selection of engagement team members with appropriate levels of capability and competence to respond to anticipated risks, as well as the proper assignment of work to them. Lastly, facilitating engagement team member direction and supervision, as well as the review of their work.
References:
Chicago Public Schools. (2014). Staff Internal Auditor. Retrieved from https://cpsk12il.taleo.net/careersection/3/jobdetail.ftl?job=260677
Chicago State University. (2021). Audit Process. https://www.csu.edu/internalaudit/auditprocess.htm
Clean Energy Regulator. (n.d.). Selection of audit team members. http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
-Sunthorn, Honey Lizette B. (2019-103582)
Significance of appointing the right audit staff members:
ReplyDelete- An audit committee is a group which serves a key role in helping the board of the company in fulfilling its fiduciary responsibilities in overseeing the organization’s finances (Garcia, S., 2010). It plays an important role in assisting an organization in achieving its goals and oversight responsibilities in relation to financial reporting, internal control structure, risk management systems, legislative compliance, ethical accountability and the internal and external audit functions of the company. The audit committee is expected to review essential accounting and reporting issues; recent professional and regulatory pronouncements to understand the potential impact on financial statements of the institution. The committee reviews the results of an audit with the management and external auditors, including matters required to be communicated to the committee under generally accepted auditing standards. Controls over financial reporting, information technology security and operational matters fall under the purview of the committee.
Appointing the right staff of audit members is essential as their duty is vital in ensuring the integrity of financial controls and integrated reporting, and identifying and managing financial risks. The audit committee as a whole must have knowledge and experience in financial reporting, external auditing, internal audit and the industry in which the company operates.
Phase in hiring staff members of the audit team:
Audit team helps the organization's management to achieve its operational goals. It is an independent function in a company which helps the management achieve its objectives by evaluating operational and financial risks and control environment (Wright 2019). Hiring staff members on audit teams are done at preparation stage or in planning stage of an audit process. Selection of these members is one of the most significant part of the audit planning phase and the overall responsibility for the selection of team members rests with the audit team leader. The leader must have an intensive selection to ensure that the hired members are competent, have enough knowledge, sufficient capabilities and is high skilled in conducting audit-related works effectively for the purpose of the company's progression. Audit team leader must also examine if the team has enough supporting resources to accomplish the engagement (time, equipment, and accessed to management and key employees).
References:
Waldron, M. (2015). Audit Committee Role & Responsibilities. CFA Institute. Accessed 16 October 2021 https://www.cfainstitute.org/en/advocacy/issues/audit-committee-role-practices#sort=%40pubbrowsedate%20descending
RSM International Association (2018). The duties and responsibilities of an audit committee. https://www.rsm.global/southafrica/news/duties-and-responsibilities-audit-committee
Garcia, S. (2010). Importance of an Audit Committee. https://www.hhcpa.com/blogs/non-profit-accounting-services/importance-of-an-audit-committee/
Wright, A., (2019). 5 Traits of a Successful Audit Teams. Audit Borad. Accessed 16 October 2021. https://www.auditboard.com/blog/5-traits-of-successful-audit-teams/
- Dela Cruz, Joyce Ann N. (2019-105673)
(1) What is the significance of appointing the right audit staff members?
ReplyDeleteAppointing the right audit staff members is an important decisions and is vital in the success of the business. All audit firms are aware that the human resource is their most important asset and recognize the importance of finding the balance between the skills of audit team members and the complexity of audit engagements. Forming a team is an initial step towards audit quality, since team members’ perceived inclusion and value to the team motivates higher performance. Audit firms’ managements need to leverage their resources, by at least, forming teams based on audit staff knowledge, experiences and expertise to achieve quality audit and not based on staff availability or decision-maker’s preferences. An effective team is not automatic since team members should be invested in the goals, the process to achieve the goals, and they should be accountable for the outcome. The audit team is tasked with providing oversight to management as it executes the company's strategic plans, in particular focusing efforts on areas that involve managing risks (e.g., operational, business interruption, cybersecurity, financial reporting, fraud, regulatory, etc.), ensuring compliance, establishing effective internal controls and dealing with change management, all in an effort to create an organization that is sustainable for the long-term. The significance of these functions makes choosing the right composition of audit committee members and creating a well-defined and documented operational charter extremely important. Since an audit team is a key element of audit quality, it is important to assigned audit teams based on staff specialization and interests improves audit effectiveness since commitment increases.
(2) At what phase when do audit teams hire staff members?
Internal audit conducts assurance audits through a five-phase process which includes selection, planning, conducting fieldwork, reporting results, and following up on corrective action plans. And audit teams hire the right staff members includes in the selection phase. Before the planning phase, an audit team must be composed of the right people with the right mindset, relevant expertise and the ability to approach responsibilities with a questioning mind and healthy sense of professional skepticism is invaluable to an audit committee member.
References:
Udeh, I. (2015). Audit Team Formation. Retrieved October 15, 2021, from
https://www.aabri.com/manuscripts/141952.pdf
MHM, Knowing You. (2018). CHARACTERISTICS OF AN EFFECTIVE AUDIT COMMITTEE. Retrieved October 16, 2021, from https://www.mhmcpa.com/insights/article/characteristics-of-an-effective-audit-committee-1
Ticala, Joylyn L. (2019-103552)
Significance of appointing the right audit staff members
ReplyDeleteThe operations auditor assesses the organization's performance, processes, compliance, and other potential consequences. An operational audit aims to increase the efficiency of day-to-day operations. Managers, in other words, examine the routine systems and processes of employees who perform the majority of the company's work, such as production workers. This is a critical position because they are the ones who provide independent and objective assurance of an entity's financial statements. It helps the business in a variety of ways, including maintaining accuracy, identifying errors in processing, and preventing fraud.
To have an accurate financial position statement with an unbiased opinion, it is critical to appoint the right audit staff to the audit process. They must possess the necessary qualities to be an effective auditor. First, one must demonstrate integrity; this will help to gain trust of other departments or stockholders in their decision-making. As auditors, they must be truthful, candid, and assertive with a client's financial data. They must also have a broad and deep understanding of the finest quality procedures, regulations, legal compliance, guidelines, and relevant technology. They should also be team-oriented, with positive relationships with internal audit peers, so that they can assist one another and share their experiences with others. When the appointed auditor has these qualities they can easily do their job without the possible hindrances in the future. Having the right person can ensure the quality of the auditing process and can easily detect if there is any misconduct in the business.
References:
Miller R.W. (1957). Operations auditing, a study of the newest phase of internal auditin. [Master’s Thesis, University of Richmond]. UR Scholarship Repository.
http://scholarship.rickmond.edu/masters-theses
Claypole, A. (2021, February 19). 8 top qualities of an auditor to look out for. IdeaGen. Retrieved October 16, 2021, from https://www.ideagen.com/thought-leadership/blog/8-top-qualities-of-an-auditor-to-look-out-for
At what phase when do audit teams hire staff members?
Audit phases are the procedures and processes by which auditors assess financial statements and identify errors in the present system so that a prompt solution can be implemented. As a result, they will have worked diligently and will be able to present a statement whose relevance can be proven and is accurate. Although every audit process is unique, the audit process is similar for most engagements and normally consists of four stages: planning, fieldwork, audit report and-up review. (Chicago State University, n.d.)
At planning stage, it includes establishing the overall audit strategy for the engagement and overall audit strategy, specifically designed risk assessments and assessment formats to the material misstatements. This phase also includes the appointing of staff members and a team of people who will work on the audit process and have the necessary characteristics of an effective auditor. This phase is critical because it reduces risks, improves audit efficiency, and achieves the goal with the least amount of effort.
References:
Audit Process | Internal Audit | Chicago State University. (n.d.). Chicago State University. Retrieved October 16, 2021, from https://www.csu.edu/internalaudit/auditprocess.htm
SALVO, MARY ROSE E.
2019-102485
(1) What is the significance of appointing the right audit staff members?
ReplyDelete(2) At what phase when do audit teams hire staff members?
The Institute of Internal Auditors' study found out that a major factor that is vital to the success of the operations auditing is the competence and characteristics of the audit staff members; thus, appointing the right ones will be an introductory of this case analysis. Operations auditing is described as an analytical examination of business' activity which determine and inform management whether this activity is being performed in such compliance to management's policies and insure that objectives will be met (Mints, 1954). In this manner, every audit staff members. are expected to possess a diverse set of skills particularly professional competence, perspectives and expertise, as well as industry knowledge are also extremely important, especially widening mandates of audit committees goes beyond financial reporting oversight.
The traditional approach has a major problem on management control as top management had to rely chiefly on reports prepared by field (line) personnel that limits financial and statistical analysis, that is why pre-audit survey, preliminary, and on-site activities were later e done. "Operations auditing, by internal auditing staffs, is considered as valuable source as it relies upon unbiased personal observation at the site or operations; and it is a continuous year 'round activity with little or no unproductive "between jobs" overhead". (Miller, 1957).
Furthermore, the question 'at what phase when do audit teams should hire staff members' will start to come out. Prior to beginning of any steps, staff members should already be there as top management cannot perform without its subordinates. As seen in the Figure 1: Organization of a large, specialized internal control staff in case study from the University of Richmond about Phase in Internal Auditing; the President is interconnected with the Internal Auditor which can be identified as the head of all other internal audit staffs and an external public accountant. Every department’s staffs portray a big role in the success of any organization as we commonly distinguish them as the assets of the company, but definitely not in accounting point of view, as they serve as the ladder for the company continue to develop. In essence, staff members must not be limited on the department that they are into rather have better understanding and deeper analysis on the companies' development so that everyone can provide recommendation and better proposal of solutions.
In conclusion, hiring suitable audit staff members as an introductory phase and subsequently enriching their competence and developing their characteristics are the primary keys in every organization's growth and success as it shapes the company's efficiency and effectiveness.
References:
Miller, R.W. (1957). Operations Auditing, A Study of the Newest Phase of Internal Auditing [Master's Thesis, The University of Richmond]. http://scholarship.richmond.edu/masters-theses
BATALLER, ERICA ANN R. (2019-103327)
1. What is the significance of appointing the right audit staff members?
ReplyDeleteInternal auditors are entity's own employees who investigate and appraise the effectiveness and efficiency of operations and internal controls. The main function of internal auditors is to assist the members of the organization in the effective discharge of their responsibilities. Internal auditors usually perform operational audits.
The management is responsible for preparing and presenting the financial statements in accordance with the financial reporting framework. The auditor's responsibility is to form and express an opinion on these financial statements based on his audit. An audit of financial statements does not relieve management of its responsibilities. Hence, it is management's responsibility to adopt and implement adequate accounting and internal control systems that will help ensure, among others, the preparation of reliable financial statements. The auditor's opinion on the financial statements is not a guarantee that the financial statements are dependable. An audit conducted in accordance with Philippine Standards on Auditing (PSAs) is designed to provide only reasonable assurance (not absolute assurance) that the financial statements taken as a whole are free from material misstatements. In every audit, there are always inherent limitations that affect the auditor's ability to detect material misstatements.
As stated above, we can conclude that appointing audit staff is very significant because they are the one who thoroughly checking the gathered data that is needed in auditing financial statements. They will be held accountable for the following key responsibilities: Conduct audits and reviews including assessing risks; evaluating internal control design and effectiveness; developing and managing audit programs, work plans, and resource budgets; and performing fieldwork, testing and data analysis.
2. At what phase when do audit teams hire staff members?
Each and every audit phases are equally important .Choosing audit team members is a significant part of the preparation phase. The general responsibility for the selection of team members rests with the audit team leader. However, the audit team as a whole should be part of the process of evaluating the combined skills and experience of the team and whether they are appropriate to perform the engagement. The audit team leader must guarantee that the members of the audit team have between them the knowledge, skills and availability required to suitably prepare for and carry out the audit and prepare the audit report. In this phase, this is where management assesses the risk and controls established to address the risks thoroughly. The auditor's responsibility is to design the audit to obtain reasonable assurance that the financial statements are free from material misstatements, whether caused by error or fraud.
Clean Energy Regulator. (n.d.). Selection of audit team members Accessed October 12, 2021. http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
Salosagcol, J. G., Tiu, M. F., & Hermosilla, R. (2018). Auditing theory: A guide to understanding philippine standards on Auditing. GIC Enterprises & Co., Inc.
Rosete, Jun Roi S. (2019-106001)
AGULLO,JAMAICA MAE A.
ReplyDeleteCBET-01-502A
Companies are establishments that exercise their ventures and employees are their frameworks. For the company to accomplish its daily activity the, division of works has been unimplemented. Therefore, departments were created to produce more services or outputs. This is to meet the agendas or tasks efficiently and effectively satisfying the company's operation. With this same process, the appointing of the right auditing staff members is as important as creating departments with specific functions.
Like what most people would say, "two heads are better than one," some might be thinking that it's alright to work alone but unless they didn't know that working with companions could result in the most reliable and credible outputs. Appointing of right auditing staff may seem as simple as electing who would be the next person to judge the company's standing but in fact, it's more challenging than that. To appoint auditing staff, may they be external or internal, entities must consider the formal process of selecting (Lim & Williams, 2019). The same with how an applicant would get a job, to be chosen, one must be qualified to the requirements set by the company. There's a big responsibility when becoming an auditing staff such as overseeing the whole operations of the business and it depends on what kind of business are they operating. When an audit staff has overlooked a small detail of risk then the company may snap. Audit staff must meet the company's expectations and needs to strengthen corporate governance (Deloitte, 2014). But anyone would wonder why does it need to be a group, not an individual?
According to Beasley & Jenkins (2003), auditing must incorporate brainstorming to have a full assessment of matters that may affect the whole business. It's not every day you will see the same auditor for inspections of stores, stocks in warehouses, human resources, and digital marketing. Audit staffs are tasks to collect a variety of data such as personnel data, policies and guidelines, production process, and information technology assessment for the making of the database. You see, it will not be possible without teamwork for relationship building is one of the seven secrets of success (Chambers & Mcdonald, 2013).
Success is the goal of many businesses and it's never an ending goal. Only assurance can make the business stable that's why the preparation stage is important. If you were asking when is the best time to appoint audit staff then that would be in the preparation stage. Before the actual planning phase started, the entity must arrive with the best audit staff to assess operations. This is to ensure that nothing will slip in their hands when performing the audit. On the other hand, an entity should prepare its QMR (Quality Management System) which is highly necessary for inspections (ISO 9001, 2021). Given the situation, both parties must be prepared to generate more credible and reliable information. The audit process is costly and time-consuming if there is no organization of procedures then the process will become worthless.
CONTINUATION
ReplyDeleteAccording to Bywater (n.d.), the preparation stage is the same as the planning phase and the very first step to start this phase is through notification, followed by team selection. Thereafter, a gathering of data or documentation will happen. One will be able to see that the series of steps in every phase are important, when you try asking yourself who's the workforce behind operations auditing, you'll search for selected audit staff. To reiterate, these staff must possess the right attributes that will satisfy the responsibilities of doing audits.
When maintaining assurance and confidence in the company to be audited, preparation is the key to accomplish these two things. In this stage, it will test how auditors carry themselves with strategies and independent appearances to pursue their jobs and responsibilities. This will reveal the importance of compliance despite the complexity of the work. You see, before the auditors proceed with documentation, usually, they already have established procedures for the making of the audit. This may seem to be astounding but these are the expectations of the entity they must meet and shall always practice.
Lim, P. & Williams, E. (2019). Good Practices for Auditor Appointment. KPMG LLP.
https://assets.kpmg/content/dam/kpmg/sg/pdf/2019/05/Good-Practices-for-Auditor-Appointment.pdf
Deloitte. (2014). Appointing, Assessing, and Compensating the Independent Auditor. The role of the audit committee. Deloitte Development LLC.
https://www2.deloitte.com/content/dam/Deloitte/us/Documents/regulatory/us-aers-grc-riskangle-strategicrisk-1282015.pdf
Beasley M. & Jenkins G. (2003). A Primer for Brainstorming Fraud Risks. Journal of Accountancy.
https://www.journalofaccountancy.com/issues/2003/dec/aprimerforbrainstormingfraudrisks.html#:~:text=AUDITORS%20MUST%20INCORPORATE%20BRAINSTORMING%20sessions,generation%20of%20high%2Dquality%20ideas.
Chambers, R. & Mcdonald, P. (2013). 7 Attributes of Highly Effective Internal Auditors. Robert Half International Inc.
https://global.theiia.org/news/Documents/7%20Attributes%20of%20Highly%20Effective%20Internal%20Auditors.pdf
ISO 9001. (2021). Preparing for an audit. 9000store.
https://the9000store.com/articles/preparing-for-an-audit/
Bywater. (n.d.). The Four Phases of An Internal Audit. Why Are Audits So Important?
https://www.google.com/url sa=t&source=web&rct=j&url=https://www.onrec.com/sites/onrec/directory/files/Bywater%2520Infograph%2520(1).pdf&ved=2ahUKEwid9pvK0s_zAhVNBt4KHdJ6DrwQFnoECAMQAQ&usg=AOvVaw1VI-3QCeZ4NCHW6v6X2c2m
AGULLO, JAMAICA MAE A.
CBET-01-502A
The significance of appointing the right audit staff members
ReplyDeleteAppointing the right audit staff members is an important part in starting the audit process. It is important to select right the staff members because they are the one who will be responsible for performing each of the audit activities. The audit staff must be free from conflict of interest and must not be involved in the activities they are auditing to avoid any issue and be objective in evaluating the organization. And as per the requirements of Division 2.2 of the NGER Audit Determination, the audit team leader must ensure that the members of the audit team have between them the knowledge, skills and availability required to satisfactorily prepare for and carry out the audit and prepare the audit report. In order to cover the necessary skills and expertise, audit teams are typically multidisciplinary and may include assurance practitioners, engineers, environmental scientists and financial, legal or corporate experts.
Where significant deficiencies in skills or experience are identified, and cannot be rectified through internal resourcing, the audit team may need to invite an expert from outside its organization into the team. The expert is then part of the audit team and bound by the same requirements as the other audit team members under the NGER Audit Determination. The audit staff members must have the knowledge and skills required in conducting the audit. They will help the audit to run smoothly and give a complete and accurate report to the clients.
Phase when do audit teams hire staff members
Internal audit meets with leadership and management during the development of the annual audit plan to discusses risks and potential impediments to meeting objectives. This plan is approved by the Executive and Audit Committee of the Board of Trustees. The audit team starts hiring staff members in the first phase which is selection phase. Selecting audit team members is an important part of the preparation stage. Where they reviewed first the audit plan before executing. It is important to select staff members that are knowledgeable and competence to the field to achieve successfully the goal and objective of the audit that will help the clients. And, they are ones who are responsible in each audit activities. And also, the staffs are the ones who gets relevant information and initiate contact with the clients and discusses the scope and objectives of the examination in a formal meeting with organization management, gathers information on important processes, evaluates existing controls and plans the remaining audit steps.
References:
Clean Energy Regulator.
Selection of Audit members. http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
Grabillo, M. A. (2021). Operational Audit: What are its Phases? https://markgrabillo.blogspot.com/2021/10/operational-audit-what-are-its-phases
CASTOS, CHANNEL N
2019-101672
CBET-01-503A
1.According to Stephen Covey, “People are not your most important asset. The right people are.” This means the right individuals are passionate about their job, which is a powerful force that drives them to work more and exceed their potential. In the context of operational auditing, having the right audit staff would lead to a reliable, objective and relevant audit report.
ReplyDeleteTo be able to say that your audit report is reliable, every piece of information that an auditor obtains is supported by evidence from the original documents. It said that an auditor is not expected to be an expert in authenticating documents. However, some of the documents presented to auditors may not be properly disclosed. They have to make sure to add additional audit processes to properly examine those documents and to test the accuracy and completeness of the information being presented. Having said this, the right audit staff should be able to do this to claim that the audit report is reliable; fact checking and proper disclosure of information is important in this regard because of the impact of the report on the organization.
Objectivity is one of the most important characteristics of an auditor. This characteristic should also be practiced by the audit staff since they are working to produce an efficient and effective audit report which has a significant impact on the whole operation of the company. As auditor staff, they have the responsibility of reviewing audit reports, consistently doing paper work, and reporting audit plan procedures. While doing such tasks, the audit staffs are also prone to conflict of interest that may affect the objectivity of the audit report. Audit staff should make sure that they are independent which is a representation of integrity.
Relevance can be seen as two ways: first, relevance of the audit report; and second, the relevance of the information gathered in the audit report. As an auditor, it is important that the audit report be useful as this will affect the decision making of the management/board of directors. Also, having relevant audit reports implies that the resources, such as time and money, are not wasted because the audit report has valuable information that has the capacity to influence a decision. Next, the information used in these audits must be utilized by the audit staffs for them to be categorized as appropriate employees. This is because of the information gathered must not be useless in the audit process to not waste the resources aforementioned.
2. Personally, I think that hiring audit staff would be in the planning and fieldwork phase. The planning phase is the part of auditing where most work should be done. This is where creating a basic plan and a specific methodology for the audit's expected type, time, and scope, which includes the number of staff members that should be hired, come into play. The planning stage should consider the number of the staff member as it would affect how the auditing process would take place - the forecasted team should be competent for the job and be in enough of quantity for the division of work to be done in a wisely manner. In the fieldwork phase, there is still a possibility of hiring or adding another staff member due to uncertain or unforeseen that circumstances in which may hinder the auditing process.
References:
Access denied | www.lendio.com used Cloudflare to restrict access. (n.d.). Lendio. Retrieved October 15, 2021, from https://www.lendio.com/blog/small-business-tools/5-quotes-finding-right-employee/
AS 1105: Audit Evidence. (n.d.). Default. Retrieved October 15, 2021, from https://pcaobus.org/oversight/standards/auditing-standards/details/AS1105
ET Section 102 - Integrity and Objectivity. (n.d.). Default. Retrieved October 15, 2021, from https://pcaobus.org/oversight/standards/ethics-independence-rules/details/ET102
I. What is the significance of appointing the right audit staff members?
ReplyDeleteIn an article by Larson (n.d.), he quoted Stephen Covey, “People are not your most important asset. The right people are.” This means the right individuals are passionate about their job, which is a powerful force that drives them to work more and exceed their potential. In the context of operational auditing, having the right audit staff would lead to a reliable, objective and relevant audit report.
To be able to say that your audit report is reliable, every piece of information that an auditor obtains is supported by evidence from the original documents. It said that an auditor is not expected to be an expert in authenticating documents (PCAOB, 2021). However, some of the documents presented to auditors may not be properly disclosed. They have to make sure to add additional audit processes to properly examine those documents and to test the accuracy and completeness of the information being presented. Having said this, the right audit staff should be able to do this to claim that the audit report is reliable; fact checking and proper disclosure of information is important in this regard because of the impact of the report on the organization.
Objectivity is one of the most important characteristics of an auditor. This characteristic should also be practiced by the audit staff since they are working to produce an efficient and effective audit report which has a significant impact on the whole operation of the company. As auditor staff, they have the responsibility of reviewing audit reports, consistently doing paper work, and reporting audit plan procedures. While doing such tasks, the audit staffs are also prone to conflict of interest that may affect the objectivity of the audit report. Audit staff should make sure that they are independent which is a representation of integrity.
Relevance can be seen as two ways: first, relevance of the audit report; and second, the relevance of the information gathered in the audit report. As an auditor, it is important that the audit report be useful as this will affect the decision making of the management/board of directors. Also, having relevant audit reports implies that the resources, such as time and money, are not wasted because the audit report has valuable information that has the capacity to influence a decision. Next, the information used in these audits must be utilized by the audit staffs for them to be categorized as appropriate employees. This is because of the information gathered must not be useless in the audit process to not waste the resources aforementioned.
II. At what phase when do audit teams hire staff members?
Personally, I think that hiring audit staff would be in the planning and fieldwork phase. The planning phase is the part of auditing where most work should be done. This is where creating a basic plan and a specific methodology for the audit's expected type, time, and scope, which includes the number of staff members that should be hired, come into play. The planning stage should consider the number of the staff member as it would affect how the auditing process would take place - the forecasted team should be competent for the job and be in enough of quantity for the division of work to be done in a wisely manner. In the fieldwork phase, there is still a possibility of hiring or adding another staff member due to uncertain or unforeseen that circumstances in which may hinder the auditing process.
References:
AS 1105: Audit Evidence. (n.d.). Default. Retrieved October 15, 2021, from https://pcaobus.org/oversight/standards/auditing-standards/details/AS1105
Larson, E. (N.D.). 5 Quotes on Finding the right employee. Retrieved October 15, 2021 from https://www.lendio.com/blog/small-business-tools/5-quotes-finding-right-employee/
Mary Ann Cebuano (2019-106907)
ReplyDelete1. The significance of appointing the right audit staff members is that since auditing is important and it is used to improve the decision-making and it allows them to assess, minimize or even eradicate the risk within the organization. Appointing the right audit staff members will allow the organization to work harmoniously because having an audit committee that is well-rounded and fitted for those positions, it allows and gives the shareholders the assurance that future risks are mitigated, and it even provides the credibility that the financial statements are true and fair which can boost the confidence of the shareholders that resources of the organization are used efficiently. An organization should know how and who is right audit staff members to hire and in order to appoint the right audit staff members, there must be standard and criteria to be set by the organization in order to find and hire the best and well-fitted audit staff member that can contribute to the audit committee. Moreover, the organization should hire someone that is well-rounded and has that kind of experience also, specializes in that specific type of field wherein the organization lacks.
2. In an audit process there are 5 phases and those are the Selection, Planning, Execution, Reporting, and Follow-up phase. An audit team understands if they need an additional staff member that can contribute to objectively assess and evaluate the organizations risks.
ReplyDeleteAccording to the Australian Government (Clean Energy Regulator Dept.) the hiring of audit team occurs in the phase of preparation/ planning phase, wherein it is stated that it is very important in the planning phase because the audit team leader has the overall responsibility for the team member selection. However, the audit team as a whole should be included in the process of evaluating the team's overall abilities and expertise and if they are qualified to conduct the engagement and if they are qualified and well-fitted for the position. Moreover, the audit team leader must ensure that the audit team members have the necessary knowledge, abilities, and availability to adequately prepare for, carry out, and report on the audit.
In conclusion, the right audit staff member is very vital to one’s organization because they serve as the building blocks or the missing piece to the puzzle in order for the organization achieve their goals in the future. But most importantly is that the staff members should work with independence and should work with commitment because they should perform their tasks without being affected by the higher ups and executives in order to complete their obligations and come up with an objective and well-founded audit that can help the organization assess future risks and determine how to mitigate and minimize those in order to use the organizations resources efficient. Also, because they deal with different and vast risks that are affecting the organization, hiring the right audit committee plays a vital role in the organization’s success. Also, they must be skilled and knowledgeable in that field and in order to have the right and proper audit team/committee the person to be assigned to choose his/her team must also examine his/her members if they are fit and if they are going to contribute to the audit goal and that is to objectively assess and evaluate future risk in order to mitigate or even eradicate those risks for the organization to succeed.
REFERENCES:
Department of Local Government, Sport and Cultural Industries. (n.d.). The appointment, function and responsibilities of audit committees. DLGSC. Retrieved October 16, 2021, https://www.dlgsc.wa.gov.au/department/publications/publication/the-appointment-function-and-responsibilities-of-audit-committees
KPMG. (2019). Good practices for auditor appointment. Assets.KPMG.
https://assets.kpmg/content/dam/kpmg/sg/pdf/2019/05/Good-Practices-for-Auditor-Appointment.pdf
Selection of Audit Team Members. Clean Energy Regulator. Accessed October 16, 2021
http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
1. WHAT IS THE IMPORTANCE OF APPOINTING RIGHT AUDIT STAFF MEMBERS?
ReplyDeleteInternal Auditing and its functions broadened. The antiquated definition merely focuses on the examination and evaluation of the financial reports and providing significant footnotes thereof. However, as businesses become globally competitive the higher the possibility of encountering major risk affecting their operations, hence, a need to conduct an analysis and appraisal of the management’s operations to determine if it operates according to their objectives and intended functions. The success of a business is not only centered with the profit or income they are generating quarterly an annually. A business success can also be measured by assimilating the effectivity of implementing policies as part of its management control and the frequent conduct of assessments held by the independent auditors in an audit committee. A comprehensive audit is the output of the assessments of each independent auditor and these can be produced when the auditors involved in the audit possess the qualifications.
The internal auditors are the “eyes and ears” of the management through the appraisal of the operations from a management viewpoint (Miller, 1957). The audit findings are the basis for future decisions of the management, any discrepancies and misleading information would lead to wrong decision which in effect, may affect the business at greater cost. An audit team who will perform and assess the management must possess the qualifications in order to provide a significant data to the management. A team must compose of a spirit-enthusiasts, dedicated, knowledge equipped, professionally competent, possess a constructive thinking ability and well skilled individuals.
Appointing right audit staff members in the management could lessen the cost of looking for some accounting firm that will perform the job of an internal audit. Further, having qualified audit staff members performing their job accordingly and independently could provide relevant and significant audit findings beneficial to the management. They obtain timely and unbiased reports about the efficiency and economy with which operations are being operated. Right staff members obtain information and provide recommendations about actual or potential weaknesses in operational plans, policies and procedures within the organizations. An audit committee oversight is essential to investor protection and the functioning of our capital markets (White, 2015). The information is crucial for investors to make a sound decision regarding its affairs with the business. In generalization, an audit staff member in an internal audit provide independent assurance that an organization’s risk management, governance, and internal control processes are operating effectively
PIOLIN, RICKA MAE B.
2019-101805
According to the study of Miller (1957), there are at least thirteen (13) factors that are vital to the success of an operations audit. However, it is very evident that the appointment of the right staff members for the auditing team takes the utmost significance amongst all the other factors presented. Auditors are expected to have better understanding of how businesses work for them to help ensure that the goals and objectives of the organization are achieved. Staff members who have the accounting skills, professional skepticism, a constructive thinking, various experiences, management and organizational abilities, communication skills, a respectful attitude and reputation, and are knowledgeable, reliable and accountable, are some of the characteristics that makes an auditor provide effectivity and success to operations auditing. In addition to that, he directly compared auditors from accountants. It is true that auditors should have skills to that of an accountant but he stated that there is strong distinction between the two and that is, accountants are defined as compilers of and are more focused on historical data while auditors are the ones to evaluate, validate and interpret the works done and completed by accountants. The reason that the competency and objectivity of the audit staff members is of high importance as to why it is said that it is a factor that is first to be questioned when findings were stated because auditors should have that qualification for them to be reliable and trustworthy for giving services and recommendations to an organization. Aside from saving the effort, money and time from avoiding risks of mistakes and poor-quality outcomes, because of incompetency and disorders within a wrongly selected team, by appointing the right and qualified staff members for the audit team it can produce better results and actions benefitting the organization’s operational activities, programs, and processes.
ReplyDeleteAudit teams hire staff members right from the start, where the planning phase of an operations audit usually coincides. An audit team is to hire staff members at the initial schedule before proceeding to assessments of risks, examinations of processes or brainstorming of strategies and plans because all these requirements at the planning phase require a teamwork’s initiative and collaboration for something such as vast knowledge, profound understanding and critical thinking of all competent members of the audit team can come up with accurately and objectively established strategies, processes and plans that suits best for the organization’s aims for improvement and success.
In conclusion, in order to provide an effective operations audit to an organization with goals and objectives is to be a known and successful company, it is a must to appoint the right staff member to audit its operations, systems and activities. It is also great to be able to work with co-employees with competence and characteristics qualified for an excellent and capable auditor, and in a team that works so well with each other, it keeps not only the environment in a busy workplace convenient and reliable but also adds up to the quality of services auditors give to the organization.
References
Miller, R. W. (1957), "Operations auditing, a study of the newest phase of internal auditin". Master's Theses, The University of Richmond. Paper 792.
Murdock, H. (2017). Operational Auditing: Principles and Techniques for a Changing World. Taylor & Francis Group, LLC. pp 36.
ERANDIO, JANNA A.
2019-103533
CBET-01-501A
2. AT WHAT PHASE WHEN DO AUDIT TEAM HIRE STAFF MEMBERS?
ReplyDeleteThe staff auditors are the last defense in catching errors on financial and tax documents. They analyze the operational and financial processes of a company to ensure compliance with industry and federal regulations. They play a vital role in keeping the management in touch with its desirable operations by providing relevant financial and management audit services in the firm, hence, a need to hire qualified staff auditors.
Meanwhile, we have learned of the different phases in auditing primarily: Selection, Planning, Execution (Fieldwork), Reporting and the Follow-up (Feedback) phase. In the selection phase, audit activities are selected using a risk-based approach. Internal audits meet with the leadership and management during the development of the annual audit plans to discuss risks an potential impediments to meeting objectives. On the other hand, the planning stage dwells with the decision to conduct an audit and answers the how and when. It primarily consists of planning everything prepared in advanced by the involved parties including the auditors and audit program managers.
The hiring of audit staff members may be done either during the selection or planning phase. During this phase/s, the qualified individuals who will form part of the audit committee are hired based on the “must-have” list of qualifications provided by the hiring entity such as spirit-enthusiasts, dedicated, knowledge equipped, professionally competent, possesses a constructive thinking ability and well skilled individuals including the technical skills that should bot be taken for granted. They are being evaluated by the top individuals in the HR department. The aspiring internal auditors are given the chance to present a vivid description of themselves in front of the hiring staffs accompanied with the resume and application letter he submitted and should passed the not so usual questions such as “Why should we hire you” and “How can you make significant contributions that could help achieve overall success of the management and its operations?”. Hiring and appointing individuals qualified in the audit staff position is a crucial and initial step towards achieving a successful audit in the management’s operations. Their functions are important that without them firms won’t be able to magnify to changes and apply new policies that is cost-efficient but are highly beneficial.
REFERENCES:
Mawby, William (2021). The ASQ Auditing Handbook. ASQ Quality Press. Retrieved 13 October 2021 01:30 pm from https://asq.org/quality-resources/auditing
Courtnell, Jane (2020) Audit Process: 5 Expert Steps for You to get Your Audit right. Retrieved 13 October 2021 04:42 pm from https://www.process.st/audit-process/
Millers, Russel William (1957). Operator Auditing: A Study of the New Phase of Internal Auditing. Retrieved 15 2021 from 15 October 2021 3:00 pm from https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses
PIOLIN, RICKA MAE B.
2019-101805
PART 1/2
ReplyDelete(1) What is the significance of appointing the appropriate audit staff members?
An audit department's function in an organization is to assess the operations, processes, policies, current and potential risks, and other internal activities. They are also responsible for collecting evidence, compiling audit findings, communicating evaluation conclusions, giving advice, and more. It aims to optimize the efficiency, effectiveness, and overall performance of a business. To sufficiently do these tasks, the selection of audit personnel and staff must require scrutiny.
Morris Bixby (2017) affirmed that hiring the right person is crucial. It also mentioned that a business is only as good as its employees. From the front desk to the management offices, each employee represents the face of the organization. Appointing the wrong person can cost an organization more than just financial loss. Stanley (2020) claims that hiring the right person demands time and effort. An effective hiring process means starting with a clear understanding of the company's needs, communicating well to attract quality candidates, and carefully choosing who best meets those needs.
The process of picking the members of an audit team is indeed critical. The overall responsibility of appointing the right persons lies with the team leaders or managers. With this, the hiring managers must exercise thorough examination from selecting candidates to hiring the right persons for a specific job position. These actions will contribute to producing a quality operational audit report that will positively influence the economic decisions of the stakeholders in the business. Subsequently, it will result in the improvement of the organization's performance, effectiveness, and efficiency.
References:
Morris Bixby. (2017, March 17). Why is Hiring The Right Person Essential? Retrieved from: https://www.morrisbixby.com/2017/03/17/hiring-right-person-essential/
Stanley, N. (2020, August 05). Why effective recruitment is so important. MYHR. Retrieved from: https://blog.myhr.works/why-effective-recruitment-is-important
FRANDIAN A. BLANCO, 2019-103951
PART 2/2
ReplyDelete(2) At what phase when do audit teams hire staff members?
In auditing, the selection of audit members and staff is a significant component. According to the Australian Government, Clean Energy Regulator (n.d.), the audit department as a whole should be part of the process of appraising the combined abilities and knowledge of every staff to examine whether they are suitable to carry out particular responsibilities. The audit team leader must ensure that every staff has the knowledge, skills, and availability required to prepare and deliver the audit satisfactorily and to prepare the audit report.
The selection and appointment of staff members happen in the early phases of the audit cycle. Generally, it falls under the selection phase or planning phase, but more often in the latter. The hiring process affects the outcome of the audit activity. As stated by Murdock (2017), "effective hiring will get the entire project started on the right footing, make it easier for the leader to work with a qualified team, and team members will have strong colleagues to work with" (pg. 267). By hiring qualified members, every task and activity in the audit cycle will go smoothly and well.
To sum it up, selecting and appointing audit staff members is crucial and involves critical thinking. It can affect the overall performance of the audit department in engaging in audit projects. The leader must carefully examine every candidate in a position. They must possess every qualification needed to produce a high-value audit report to help the business assess the risks and other constraints.
References:
Australian Government Clean Energy Regulator. (n.d.). Selection of audit team members. Retrieved from: thttp://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
Murdock, H. (2017). Operational Auditing: Principles and Techniques for a Changing World. CRC Press Taylor & Francis Group
FRANDIAN A. BLANCO, 2019-103951
1. What is the significance of appointing the right audit staff?
ReplyDeleteFor businesses, including small and medium-sized ones, having the right people can mean the difference between success and failure in the long run. Large companies may face staff problems, but these difficulties can have a greater impact on small and medium enterprises with fewer resources. One of the biggest challenges for an audit start-up is building its reputation and integrity. Make sure that the company is known for its quality of service, good work, and professionalism. Since your people are the face of your company, it is important that you have the right people or an auditor staff on board. It can take a long time to build a reputation and takes a second to destroy it, so it's very important to hire the right people. All employees can make mistakes at times, so it may be wise to check out a number of professional indemnity insurance offers to see if you are covered in the worst case scenario and making a mistake.
In business, the people you need to hire are likely to set a precedent and this is the foundation of the spirit and attitude of the company or organization. Hiring people with a clear mind such as one with integrity, objectivity and independence can help a company and this will result in the company having a positive impact on the quality of service for your company. So, in appointing right staff, they must take their time for the hiring process and think carefully about what your company needs from its employees to ensure lasting success. The appointing process is difficult and made more complicated so, employers can combat misconduct by implementing detailed employee selection processes, including background checks, reference checks, verification reviews like professional training and certification, proficiency tests, personality assessments, and interview questions so through these methods, a clear picture of employing a right staff will be captured.
Overall, its benefits are; the company or firm will slash the costs of the hiring process, it will maximize productivity, You won’t have to deal with the damage that a bad hire can do to your company, You will preserve the morale of your internal teams and protect the image of the firm and the profession.
Part 1/2
-Dugay,Bernadeth (2019-103892)
2. At what phase when do audit teams hire staff members?
ReplyDeleteThe auditing phase where audit teams hire staff members is in opening conference and in planning phase. The internal audit department reviews the processes and the plan to complete the audit. During this meeting or this phase, the client describes the entity or system to be verified, and make sure that the organization has the right and enough available resources such as organization’s personnel, facilities and more for relevant information. The internal auditor meets with the executive directly responsible for the unit to be audited and with all the employees he would like to involve. It is important for the client to identify the problems or areas of particular concern that need to be addressed so that managers or a firm must able to hire a right staff members.
As mentioned above, hiring or staffing an audit tenants must have no doubt that the process works best when customer management and internal audit have a strong working relationship based on clear and on-going communication. Many clients extend this cooperation beyond the respective audit so audit department has worked with management on a project very well.
Planning phase is also the phase where there is needs to hire staff members because during the planning phase of each project, internal audit staff gather relevant background information and engage in discussions with the client. Auditors here must meet with the organizations administration and also the clients to be hired must able to identify risks and determine the objectives and scope of the audit, as well as the schedule for fieldwork and dissemination of the report. During the planning phase, the audit clients are contacted and relevant background information is collected to understand the size, responsibilities and procedures of the audit area. In this phase there must be an examining that is determined by creating an exam schedule that represents the blueprint for conducting the exam, achieving the exam objectives and hiring or appointing right staff in a workplace.
REFERENCES:
Audit Process (n,d) retrieved from: https://audit.utexas.edu/audit-process
Audit Process; The Internal Audit Process from Beginning to End (n,d) retrieved from: https://www.csu.edu/internalaudit/auditprocess.htm
Klazema Michael (2018) 9 Benefits to Hiring the Right Candidate the First Time Around
https://talentclick.com/resources/9-benefits-hiring-right-candidate-first-time-around/
The Audit Process (n,d) retrieved from https://internalaudit.ku.edu/project-process
Why hiring the right employees is vital to your business (May 2012) retrieved from: https://www.standard.co.uk/business/money/why-hiring-the-right-employees-is-vital-to-your-business-7753789.html
Part 2/2
-Dugay, Bernadeth (2019-103892)
(1) What is the significance of appointing the right audit staff members?
ReplyDeletePreparing and maintaining financial reports, assessing profit and loss, drawing conclusions based on the reports, and making required suggestions are all responsibilities of the audit staff. Some of the basic functions include financial data evaluation and analysis, as well as general ledger entry verification. An audit staff should be well-acquainted with the company's procedures and policies. The audit committee is responsible for the appointment, compensation and oversight of the work of the auditor. As such, CPAs report directly to the audit committee, not management. There are two different types of staff auditors. Internal auditors are employed directly by a company and conduct internal audits throughout the year on the company’s financial and operational policies. External auditors are employed by an auditing firm and provide an objective opinion on the company’s financial and tax compliance. While all staff auditors work in the accounting industry, they can specialize in a variety of niches. Staff auditors conduct an informational interview with their client to find out about their financial and operational history. At the end of each audit session, staff auditors complete a detailed report for both the client and their company’s record. These reports are sent to the managing auditor for approval.
(2) At what phase when do audit teams hire staff members?
In preparation stage, hiring staff members is an important part. The audit team leader is ultimately responsible for the selection of team members. The audit team as a whole, on the other hand, should be included in the process of evaluating the team's combined abilities and expertise, as well as whether they are qualified to conduct the engagement.
In Opening Conference Phase, The Internal Audit process is discussed, as well as the plan for completing the audit. The client defines the unit or system to be examined, the organization, available resources (people, facilities, equipment, finances), and other pertinent information at this discussion. The internal auditor meets with the senior officer in charge of the unit in question, as well as any other staff members he or she chooses to invite. It's critical for the customer to identify concerns or areas of particular concern that need to be addressed.
References:
BSR. (n.d.). Audit staff responsibilities. Best Sample Resume. Retrieved October 16, 2021, from https://www.bestsampleresume.com/job-descriptions/audit/audit-staff.html.
Chicago State University. (n.d.). Audit process: Internal audit. Chicago State University. Retrieved October 16, 2021, from https://www.csu.edu/internalaudit/auditprocess.htm.
Clean Energy Regulator. (n.d.). Selection of audit team members. Clean Energy Regulator Crest. Retrieved October 17, 2021, from http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx.
Barrometro, Bienice Desiree B.
2019-101546
CBET-01 501A
Behind the successful process of operational auditing are the independent and reliable audit teams. These professionals will all contribute to develop collaborative work that would be essential and valuable to enhance the condition and performance of the company. In its highest sense, operations auditing is performed by competent and imaginative people who are devoted to the betterment of the whole organization (Miller, 1957). The selection of the audit staff members is vital to the company’s success, so it must be managed with precision and care. They have crucial roles and responsibilities to the growth and enhancement of the company. It may take ample time, resources, and dedication to form and appoint the right audit staff members, but it will be worth it.
ReplyDeleteThe audit department will serve a valuable function to improve the company’s processes and procedures. They will be the eyes and ears as they oversee the day-to-day operations to analyze policies’ effectiveness, ensure compliance with the laws and regulations, and evaluate risk management. They will act as a team member as they embody the goals and objectives of the company. And so, to fulfill their mission and carry out the tasks well, the audit staff members must be equipped with technical knowledge and practical training of the operations and familiarity to the industry of the company. It is necessary to get the work done assigned to them. Being intuitive, analytical, and display of critical thinking skills are other characteristics that should be present. It will help in connecting different information and in revealing the reality of what’s happening. In addition, great interpersonal skills help express ideas, establish clear communication, and build healthy relationships with each other. It would boost the team’s morale and at the same time increase productivity. In that way, it will be easier to form well-grounded findings and recommendations that will help the company take the right path and direction. Having an effective audit department will guarantee the attainment of the aim of operations auditing and will uncover its value and worth.
Although it will be hard to gather and appoint the right audit staff members, it is already demanded and should be settled at the early stage of an audit process; the selection phase. In this phase, the scope of the audit and areas to be looked into are established. Past audit plans and related documents are assessed and examined, taking notes of the risks and possible strengths and opportunities. Preliminary activities are performed in preparation for the actual planning of actions. Through this, the team leader can identify the right person with the required specialized skills and practical experience to hire. It will be beneficial to organize the audit staff members and assign their line responsibilities from the start, especially in downsizing cost and staff capacity, if possible, and saving time. The work will go on smoothly as the audit process progresses, with the members already aware of their respective roles and responsibilities.
Hiring the right staff members at the right time is a huge factor to consider in determining whether the audit process would succeed or fail. The individual team members are like dominos, serving the purpose of accomplishing their tasks and collaborating to bring fruitful results. And if even just one fails to do their responsibilities, it can affect and slow down the entire audit department, and worst, the company. Therefore, the selection of audit staff members should not be overlooked and be treated with great importance.
References:
Buleen, C. (2019, February 4). Phases of the Audit Process. Small Business - Chron.com. https://smallbusiness.chron.com/phases-audit-process-15260.html
Miller, R.W. (1957). Operations Auditing, A Study of the Newest Phase of Internal Auditing [Master’s Thesis, The University of Richmond]. http://scholarship.richmond.edu/masters-theses
Shayne Danielle G. Samson 2019-102562
CBET-01-502A
(1/2)
ReplyDelete1) What is the significance of appointing the right staff members?
According to Wright (2019), an audit team is an independent function in an organization that helps management achieve its objectives by evaluating the risk and control environment. It is a critical responsibility of an audit team to provide an in-depth understanding of the company’s business dealings and processes and to analyze and convert those informations into meaningful and insightful data to improve operations (Pewa, 2021). Thereby providing assurance as a trusted advisor of the company. But how an audit team can be a high-performing audit team? How important it is to appoint the right team members in a team?
An effective audit team is compose of great auditors and business professionals. Accountants and other professionals might become an audit team as long as both of them have in-depth knowledge of the business and the industry and they work together to deliver a high-quality audit. Each members of the team may have different specializations. One may have experience with accounting for income taxes, others in asset valuations, etc. And teams assigned to audit larger companies may include non-accounting professionals such as actuarial specialists or computer and systems experts (Fornelli, 2018).
Hiring team members is one of the most critical part in creating an audit team. The team member that will be chosen should have the necessary skills and expertise. Audit team members should be multidisciplinary and assurance practitioners, engineers, environmental scientists and financial, legal or corporate experts (Clean Energy Regulator, n.d.). Members of the audit team should have the knowledge, skills and availability required to carry out the audit and also, to prepare the audit report (Clean Energy Regulator, n.d.). It is important to choose and hire experts with the aforementioned qualities and requirements in order to effectively follow the establish strategies and guidelines in conducting an audit. It is important to choose and hire the effective experts to achieve the objectives and to reduce audit risk. It is for the success of the audit work.
References:
Clean Energy Regulator. (n.d.). Selection of Audit Team Members. Retrieved October 12, 2021 from http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
Fornelli, C. (2018, February 8). Making Teamwork Work: A View from Auditing. Retrieved October 10, 2021 from
https://www.linkedin.com/pulse/making-teamwork-work-view-from-auditing-cindy-fornelli
Pewa, M. K. (2021, April 19). Roles and Responsibilities of an Internal Audit Team. Retrieved October 12, 2021 from https://www.hockinternational.com/roles-and-responsibilities-of-an-internal-audit-team/
Wright, A. (2019, May 01). 5 Traits of Successful Audit Teams. Retrieved October 10, 2021 from https://www.auditboard.com/blog/5-traits-of-successful-audit-teams/
— KRYSTAL VIEN T. LADAO (2019-106903)
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ReplyDelete2) At what phase when do audit teams hire staff members?
Selecting audit team members is an important part of the preparation stage (Clean Energy Regulator, n.d.). Hiring audit team members should start from the first phase, the planning phase. It is where the auditors plan everything, including the hiring of effective and applicable audit team members. In planning phase, auditors prepare the overall viable audit strategy, guidelines, and scope to be followed in conducting an audit. The auditors plan the extent of direction, supervision of the hiring and engagement of the team members, the nature, timing, and review of the work. Careful planning of 'who to hire' and 'how many team members should be hired' are important, to achieve the objectives and to reduce audit risk.
The overall responsibility for the selection of team members rests with the audit team leader to ensure that the members of the audit team have the knowledge, skills and availability required to carry out the audit and prepare the audit report (Clean Energy Regulator, n.d.). When an expert was selected or hired, he will be a full member of the audit team and therefore subject to the same independence, quality control and conflict of interest situation requirements as the other audit team members (Clean Energy Regulator, n.d.).
Reference:
Clean Energy Regulator. (n.d.). Selection of Audit Team Members. Retrieved October 12, 2021 from http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
— KRYSTAL VIEN T. LADAO (2019-106903)
An audit team is an independent function in an organization that helps management achieve its objectives by evaluating the risk and control environment. Yet, internal audit departments rarely look in the mirror and perform a critical assessment of their own traits. While we spend so much of our time thinking about how other teams are performing, it is an essential exercise to perform for ourselves if we will continue to grow and succeed (Aaron Wright (May 1, 2019)). An audit team are composed of audit partner, to make sure that the audits and reports are working as it is., senior-manager/manager, the one who is responsible in supervising employees and the reports in the company., audit senior, that plan and execute audits for the business., audit staff, that performs auditing for the operations and make sure that the law and regulations is reach, and tax professional, that is accountable in tax related information.
ReplyDeleteEvery member of a team plays a vital role in a success story because a business is truly great not on a product, or a service but it’s the individuals and the teams that comprise a business’ human capital (Office Management (June 3,2020)). So appointing the quality employees who always do their job will help the company to grow because it is not just about the resumes and profiles. The company must have strategies to help them identify the best candidates to ensure that the staff is a staff by form and by substance.
I think the audit team should hire staff members in planning because hiring staff from the very beginning of the process can give the new staff the insight on how the upper auditing management will conduct a specific action. It will also give the new staff to know in advance on how work has to be done and it also gives direction to the action. It helps the staff to make sure that he understands the goal and what he need to do to help the higher ups reach it by involving everyone in the planning process.
--- Marinel S. Nudo (2019-106335)
BANGATE,LOVELY V.
ReplyDeleteCBET 01-501A
1.Internal auditors perform a vital role in the organization’s reformation. Appointing qualified and suitable audit staff members to the audit engagement will make a positive impact on the entire company. To execute the overall company’s objectives, each workforce should be placed commensurate with their purpose enabling them to fulfill their designated duties and achieve the desired outcome. Miller (1957) concludes that “There must be a competent Internal auditing staff which represents a wide range of technical abilities and practical experience” (p.73). This passage can be interpreted in a way that fieldwork audits must possess proficiency in all aspects of the business. Acquiring intensive experience in operation auditing exposes them to complex circumstances which hone their critical and analytical thinking, enhance resiliency, and have an intimate understanding of the field. Similarly, audit staff is required to have sufficient technical skills which necessitate the use of advanced computational and data analytics techniques. This allows auditors to maximize the use of data resources to have a reasonable forecast of business trends and risks which they review to conceive the applicable interventions needed to cope in changing environment. In addition, the core skills and competencies must be present in the candidates to ensure the value-adding service they will render. The auditor must have the strong desire of fulfilling his tasks in accordance with audit standards and principles to maintain his independence, relevance, and assurance throughout the entire audit process. According to Wrigth (2019), “For internal audit department management and hiring managers, the key to building and sustaining effective teams lies in understanding that successful teams stem from successful individuals. Building a great internal audit team doesn’t happen overnight, but understanding the traits of high-performing audit teams is an essential step toward strengthening these areas in your groups and gradually improving your department as a whole.” This statement proved the importance of scrutinizing and assessing the abilities of audit staff to assure they are competent enough to respond and satisfy their client’s demands in a timely and relevant manner. More importantly, the audit professionals must be liberal-minded and willing to collaborate with the team, auditees, and executives to increase the likelihood of achieving successful audit and firm progress.
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ReplyDelete1. What is the significance of appointing the right audit staff members?
Auditors review and verify the accuracy of financial records. They are also tasked to report systematic errors or any fraudulent acts. It is significant to appoint the right audit staff members because they are expected to provide oversight of the financial reporting process, the audit process, the company’s system of internal controls and compliance with laws and regulations. Audit staff members responsibilities include the preparation and maintenance of the financial reports, examining the data provided, having a conclusions based on the reports given and making the necessary recommendations.
Auditing is a collaborative effort in which each team member performs a vital role. Yes, auditors can work remotely or autonomously but having the people around you to help would make the work more efficient and more effective. The entire team is essential, not just a specific person, not just the audit firm partners, not just the managers, etc. Your staff members are the foundation of your team, they are the pillars that will mold not just the team itself but of course the whole organization as well.
Audit staff members is crucial in recognizing, prioritizing, and evaluating the risks that a company faces. They should be responsible for carrying out various auditing operations using current auditing principles and accounting methods. The staff member should be independent to prevent others from interfering with their work. Being a staff member in this field is not easy for you are expected to have a keen attention to detail, to be a good team-player and communicator, has excellent judgement, and someone who’s objective with analytical mind. Risks in life is inevitable, as well as in work, that’s why having a team you can trust because of their skills and knowledge would be beneficial not only with the senior or the higher ups but also for the company as a whole.
ReplyDeleteBANGATE, LOVELY V.
CBET 01-501A
2. Selecting audit team members is done at the preparation stage or planning phase. Logically, it is conducted beforehand since the team must compose the expert workforce needed to formulate a comprehensive plan. “The overall responsibility for the selection of team members rests with the audit team leader. However, the audit team as a whole should be part of the process of evaluating the combined skills and experience of the team and whether they are appropriate to perform the engagement” (“Selection of audit team members”, 2020). We can infer that the selection process assesses the contribution of an individual to meet their client goals. It is a crucial phase since it mitigates the chances of mistakes committed by the inexperienced auditor. Having the appropriate audit staff before the execution of the audit plan will increase the efficiency and effectiveness of the team performance. It is inconvenient if, during the fieldwork, they later find out that the member they hire is unfit to perform a complex task because it takes time and effort to look for another one that suits the job.
In conclusion, selecting the right audit staff is an essential step in determining the success of a company’s operation. The audit team leader must be vigilant in evaluating the abilities of the candidates because his decision will either bring success or failure to the company he is serving.
References:
Miller, R. (1957). Operations auditing, a study of the newest phase of internal auditing. Retrieved October 17,2021, from https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses
Wright, A. (2019,). 5 traits of successful audit teams. AuditBoard. Retrieved from https://www.auditboard.com/blog/5-traits-of-successful-audit-teams/.
“Selection of audit team members.” (2020). Retrieved October 17,2021, from http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
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ReplyDelete2. At what phase when do audit teams hire staff members?
There are five phases of our audit process: Selection, Planning, Execution, Reporting, and Follow-Up. The hiring of audit staff members happens during the first phase called “selection phase”. The selection of staff members is the responsibility of the audit team leader. This phase is critical because you’re selecting and choosing the best people suitable for your team. What makes an organization genuinely great isn't what product or service provide, it's the people that make up the company's human capital. Meaning to say, how you establish the team right from the start is critical because you will be working together throughout the whole auditing process. From the question itself, it mentioned “audit teams” so it safe to assume that auditing isn’t a job done by only one person, it is a team-driven collaborative effort. Making sure that hiring staff member right from the early stage, in the selection phase, isn’t that easy but we need to carefully do this process in order to achieve our goals.
All teams are groups, but all groups are not necessarily teams. Groups might share common characteristics or be related to one another in some way (your peer group, for instance) but a team shares a goal, regardless of any mutual traits. And don't confuse 'team' with 'teamwork'; the latter is a positive descriptor of the benefits or output of being a team. There are good, bad and indifferent teams, but teamwork is a noun that describes that crucial synergy where the whole is indeed greater than the sum of the parts. The formation of the staff shouldn’t be mediocre so right from the start, carefully select the people suited for the auditing team.
References:
Grabillo, M. A. (2021). Operational audit: what are its phases? Blogspot. https://markgrabillo.blogspot.com/2021/10/operational-audit-what-are-its-phases.html
Mclachlan, C. (2016, August 31). Audit advantage: teamwork. CIA. https://www.careersinaudit.com/article/introducing-the-audit-advantage-series/teamwork/
— CRUZ, IVY FRANCESCA SN. (2019-103873)
Victorio, Boy D.
ReplyDelete1. What is the significance of appointing the right audit staff members?
According to KPMG international, The Audit Committee is responsible for making recommendations to the Board on the appointment and reappointment of external auditors. Furthermore, the Audit Committee should review the external audit. Auditors' fees and make appropriate adjustments recommendations to the Board of Directors for approval. To fulfill its responsibilities, the audit committee should consider instituting a formal process for engaging external auditors. The overall business acumen of the engagement partner and team members, as well as their knowledge and experience in the company's industry. The AC's ability to establish trust with the partner in charge, as well as its level of comfort with periodic contact between meetings. The auditor's ability to communicate clearly, candidly, and concisely issues and concerns to others in a clear and effective manner the Committee, both in private and public sessions during business meetings. The auditor's ability to collaborate with management, including the CEO and non-financial management, while remaining objective. The auditor's ability to meet service deadlines and respond to issues in a timely manner. The level of independence, objectivity, and professional skepticism of the audit team (for example, in the review of estimates and judgements).
2. At what phase when do audit teams hire staff members?
During the selection phase, audit staff members are hired.
Qualified auditors will be chosen and new audit staff members will be hired to join the company's audit team during this phase.
Following the completion of the audit team members, the internal audit will develop an audit plan for the following year based on the findings of the current year's assessment and the resources of the firm's department.
Having a high-quality auditor on your side can help you avoid potentially disastrous problems.
Fraud, abuse, or noncompliance with government regulations can all lurk beneath the surface of your day-to-day accounting practices, becoming more pronounced as your company grows.An external auditor can assist you in identifying areas where your books or accounting practices are no longer in compliance with new IRS regulations.
An external audit can also identify any gaps in your compliance efforts.
You can rely on the independence of the investigation and the recommendations made because an external auditor has no reason to be anything other than truthful about the status of your financial compliance. Your financial statements will be more credible both internally and externally if they have been reviewed by an external auditor.
For family businesses, closely held corporations, and non-profits, these audits provide a common ground for stakeholders to properly assess the organization's financial health.
External audits provide an unbiased view of the organization's accounting practices for publicly traded companies.
Reference:
KPMG LLP(2019). Good Practices for Auditor Appointment. Retrieved October 16, 2021, from https://assets.kpmg/content/dam/kpmg/sg/pdf/2019/05/Good-Practices-for-Auditor-Appointment.pdf
Simon lever (2020). Four Reasons Your Company Needs an External Auditor. Retrieved October 17, 2021, from https://www.simonlever.com/four-reasons-your-company-needs-an-external-auditor/
When we build something, we always choose carefully on what materials we use in order to strengthen its stability. If resources are limited, we somehow learn to think of a way to make it work, finding ways to produce a perfectly fit substance. However, that is not always the case. A perfectly good example is completing a puzzle. In puzzles, we are exerting effort into putting it together, then later enjoy the fruit of our hard work. When one piece is missing, the whole image of the puzzle would be incomplete and lacking. As it depends on its pieces, looking for an alternative is not an option. As puzzles are completed with their own pieces, a business is absolute when it contains the right people. Considering that hiring new staff is time-consuming, it is vital to be picky, keeping in mind that the employees, no matter what their position is, would be contributing to the overall performance of the business.
ReplyDeleteIn auditing, it is significant to retain integrity, synchronize to achieve a common goal, and to gain and build trust among one another. In this reason, if we were to rush into appointing someone into the job, without actually evaluating them, it would cost us the time and money we spent to find interested people for the job. It might compromise the operations of the business, and lower the morale of pre-existing employees. Look into hiring the right audit staff members as if you are investing for the future. It would either grow eventually, bring success, or bite you back and cause your defeat. Moreover, as it is important to hire the right people, it is of interest of the business to hire at the appropriate time. Assessing the needs of the business would help us deliberate on what to do, and prevent us to take unnecessary steps. The most suitable phase of auditing for hiring staff members is when the team is planning their strategies, setting down goals, and evaluating risks. This way, the newly hired staff members would be able to absorb the needed information for them to sustain demands. If they are equipped with the plan, they would be competent enough to work on their own, and would be able to communicate and coordinate among others.
To sum it up, managing a business is like forming a puzzle. One piece missing, and it would lack and speak incompleteness. In order to enjoy the whole picture, one must consider all aspects, never tolerate the "that'll do." mindset.
REFERENCE:
Top Five Reasons Why Hiring the Right Person is Essential. Morris Bixby. (2017, March 17). Retrieved October 17, 2021, from https://www.morrisbixby.com/2017/03/17/hiring-right-person-essential/.
When we build something, we always choose carefully on what materials we use in order to strengthen its stability. If resources are limited, we somehow learn to think of a way to make it work, finding ways to produce a perfectly fit substance. However, that is not always the case. A perfectly good example is completing a puzzle. In puzzles, we are exerting effort into putting it together, then later enjoy the fruit of our hard work. When one piece is missing, the whole image of the puzzle would be incomplete and lacking. As it depends on its pieces, looking for an alternative is not an option. As puzzles are completed with their own pieces, a business is absolute when it contains the right people. Considering that hiring new staff is time-consuming, it is vital to be picky, keeping in mind that the employees, no matter what their position is, would be contributing to the overall performance of the business.
ReplyDeleteIn auditing, it is significant to retain integrity, synchronize to achieve a common goal, and to gain and build trust among one another. In this reason, if we were to rush into appointing someone into the job, without actually evaluating them, it would cost us the time and money we spent to find interested people for the job. It might compromise the operations of the business, and lower the morale of pre-existing employees. Look into hiring the right audit staff members as if you are investing for the future. It would either grow eventually, bring success, or bite you back and cause your defeat. Moreover, as it is important to hire the right people, it is of interest of the business to hire at the appropriate time. Assessing the needs of the business would help us deliberate on what to do, and prevent us to take unnecessary steps. The most suitable phase of auditing for hiring staff members is when the team is planning their strategies, setting down goals, and evaluating risks. This way, the newly hired staff members would be able to absorb the needed information for them to sustain demands. If they are equipped with the plan, they would be competent enough to work on their own, and would be able to communicate and coordinate among others.
To sum it up, managing a business is like forming a puzzle. One piece missing, and it would lack and speak incompleteness. In order to enjoy the whole picture, one must consider all aspects, never tolerate the "that'll do." mindset.
REFERENCE:
Top Five Reasons Why Hiring the Right Person is Essential. Morris Bixby. (2017, March 17). Retrieved October 17, 2021, from https://www.morrisbixby.com/2017/03/17/hiring-right-person-essential/.
POBLACION, KIRSTEN GAVEN R. (2019-104425)
Hiring a competitive and qualified staff is what every business is seeking for. In an audit team, having a right staff is one way to have a successful audit plan. A person with professional skepticism, excellent communication skills and a critical thinker will be an advantage in the performance of achieving company’s goals. With the right members you can assure that result was done professionally and where present in all honesty. In addition, ensuring all investors and others that recommendations and data was performed in accordance to the company’s strict policies. It was monitored and evaluated thoroughly. Maintaining the credibility of the firm is one major priority that is why it is important to have a proper and qualified audit staff to maintain the positive imagine of the company. According to (Tugman & Leka, 2019) there five key factors to enhance audit effectiveness. An auditee committee must be transparent, since they manage the sensitive part of the business operation, it is only just that all activities must be transparent and well- communicated like all significant issues must be reported. Effective communication, in all aspect of the business operation communication is vital. All data must be delivered in a concise and understandable way. A detailed presentation of all corporate governance, operation process and etc. Committee composition, an auditor must have the appropriate skills, competencies and expertise as mentioned earlier they cover sensitive part of the business that is why a diverse skills and experience on the matter is needed. Furthermore, the efficiency and effective way of working. With the continuous addition of workload, it also increases the complexity on their agenda, it requires a better way to maximize their time but ensuring the accuracy and independence of the work done. Last is the strength of financial function, although in operation auditing it does not focus on the financial side, one of the foremost responsibilities of an auditor is to create a reliable and auditable information.
ReplyDelete“When to hire audit staff?”
I think the phase where they hire staff members is the planning phase, because it is where the objectives, goals and strategies they like to plan out. A poor planning will result to a poor performance and poor result. The Planning is where all decision-making, budgeting, and as well as building the intention of the business. A perfectly plan goal is where the business enterprise relies on, it is the foundation of creating a positive outlook and a smooth sailing business operation. In an organization planning is where they identify their end goals, they set realistic targets and report problems and create actions that is why a competent staff members must be hired during this process.
References
Tugman, L., & Leka, L. (2019, September 20). International Federation of Accountants. Retrieved from Google : https://www.ifac.org/knowledge-gateway/supporting-international-standards/discussion/5-key-factors-enhance-audit-committee-effectiveness
Curay, M. J. (2021, September 11). Auditing: OBJECTIVES & PHASES OF OPERATIONAL AUDITS 09112021 by MJBC. Retrieved from Youtube : https://www.youtube.com/watch?v=7aUabD77FvI
MICAH LEI C. LONGNO (2019-106978)
CBET 01 - 503A
Significance of Appointing Audit Staff Members
ReplyDeleteAn auditor is a person who is allowed to examine and analyze the correctness of a company's financial accounts. They are significant since they are the ones who give objective and independent assurance of an organization's financial accounts. It helps the business in a variety of ways, including preserving consistency, spotting mistakes in processing, and preventing fraud. They are the authorized people responsible for reviewing and verifying the correctness of financial data and ensuring that businesses adhere to tax regulations. Their main goal is to safeguard organizations from fraud and to draw attention to any inconsistencies in accounting processes, among other things.
They must possess the qualifications of a good auditor in order to be qualified for the job of auditor. Because it is such an important task, you need choose a quality auditor so that they can perform their work without making erroneous and biased choices that may harm the firm and its clients. After you employ an auditor, they should be increasing rather than decreasing your company's production. Bringing the appropriate people on board guarantees that they will grow with you, contributing to your company's overall success and minimizing the need to hire for any new leadership role that arises down the road.
What phase when do audit teams hire staff members?
Internal audit performs confidence audits using a five-phase procedure that comprises selection, planning, fieldwork, reporting, and corrective action plan implementation. The team hires staff members for the audit process during the planning phase. The project plans are established, the deliverables and requirements are determined, and the project timeline is developed during the planning stage. It entails developing a set of strategies to steer your team through the project's execution and closing phases. Project planning is critical in guiding stakeholders, investors, teams, and the project leader through the many phases of the project. To define desired goals, mitigate risks, prevent schedule delays, and provide the agreed-upon product, service, or outcome, planning is required.
References:
Miller R.W. (1957) Operation auditing, a study of the newest phase of internal auditin. [Master’s Thesis, University of Richmond] UR Scholarship Repository
https://scholarship.richmond.edu/masters-theses
The Audit Process. (2014, April 9). Internal Audit. Retrieved October 17, 2021, from https://internalaudit.ku.edu/project-process
SALAPARE, DARYLL A.
2019-102485
Significance of Appointing Audit Staff Members
ReplyDeleteAn auditor is a person who is allowed to examine and analyze the correctness of a company's financial accounts. They are significant since they are the ones who give objective and independent assurance of an organization's financial accounts. It helps the business in a variety of ways, including preserving consistency, spotting mistakes in processing, and preventing fraud. They are the authorized people responsible for reviewing and verifying the correctness of financial data and ensuring that businesses adhere to tax regulations. Their main goal is to safeguard organizations from fraud and to draw attention to any inconsistencies in accounting processes, among other things.
They must possess the qualifications of a good auditor in order to be qualified for the job of auditor. Because it is such an important task, you need choose a quality auditor so that they can perform their work without making erroneous and biased choices that may harm the firm and its clients. After you employ an auditor, they should be increasing rather than decreasing your company's production. Bringing the appropriate people on board guarantees that they will grow with you, contributing to your company's overall success and minimizing the need to hire for any new leadership role that arises down the road.
What phase when do audit teams hire staff members?
Internal audit performs confidence audits using a five-phase procedure that comprises selection, planning, fieldwork, reporting, and corrective action plan implementation. The team hires staff members for the audit process during the planning phase. The project plans are established, the deliverables and requirements are determined, and the project timeline is developed during the planning stage. It entails developing a set of strategies to steer your team through the project's execution and closing phases. Project planning is critical in guiding stakeholders, investors, teams, and the project leader through the many phases of the project. To define desired goals, mitigate risks, prevent schedule delays, and provide the agreed-upon product, service, or outcome, planning is required.
References:
Miller R.W. (1957) Operation auditing, a study of the newest phase of internal auditin. [Master’s Thesis, University of Richmond] UR Scholarship Repository
https://scholarship.richmond.edu/masters-theses
The Audit Process. (2014, April 9). Internal Audit. Retrieved October 17, 2021, from https://internalaudit.ku.edu/project-process
SALAPARE, DARYLL A.
2019-102486
ReplyDelete1/2
1. What is the significance of appointing the right audit staff members?
In operational auditing, appointing the right audit staff members is important because it serves as an initial step to start on the right footing for success. Without an audit team with professional skills qualification and in-depth knowledge to conduct the whole audit plan, all involved engagements are likely to drift during the course of the audit by looking for irrelevant documentation, interviewing people unnecessarily, examining transactions, and analyzing process characteristics that are alien to the priorities embraced by the sponsors of the engagement. And in the end, the audit result will communicate recommendations for improvement regarding topics of little importance to audit clients. In essence, not having the right audit staffs will result in wasted time and resources, frustration for all involved, and damage to the reputation of the internal audit function.
Assigning a role to the audit staff member will significantly affect how the internal audit method obtains timely and unbiased report. These staff members, especially those with higher positions should be required to have a higher degree of understanding to internal auditing as well as to the organization since they have a great responsibility on their shoulders. Hence, aside from the essential or fundamental qualification that an internal audit member shall possess including the understanding and knowledge about the work, independence, and objectivity. A staff member should also be technically qualifying to scan and trace complex accounting and statistical data of the organization. The auditor offers recommendations and ideas because he is a member of the staff; top management and local management make the decisions. In its purest form, operations auditing is carried out by capable and imaginative individuals who are committed to the overall improvement of the firm (Miller, 1957 p. 11-12).
With that in mind, internal auditors’ duty is to verify that management, with the authority received from the board of directors, establish the structure, policies, procedures, and metrics to
achieve the vision, mission, and objectives of the enterprise, and this should be done within the parameters of ethical behavior, legal requirements, and stakeholder expectations (Murdock, 2017).
MORENO, GLORENE MAE R. (2019-105014)
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ReplyDelete2. At what phase when do audit teams hire staff members?
There are several phases in performing an audit. Although every audit is unique, the 4 most used in the auditing process are the following: planning, fieldwork, reporting and follow-up review. All has a significant role in conducting an audit. According to Murdock (2017), selection of audit team members happen in the planning phase. In planning, the auditor in charge must perform a number of tasks including communicating with the corresponding process about the timing of the review, requesting needed financial operational reports and documents, coordinating staff availability, identifying the systems in use, defining scope, objectives, work schedule, and budget for the engagement. The planning phase also includes scoping, budgeting, defining the population of interest, defining how testing will be performed, and announcing audit.
For instance, the internal audit function lacks expertise on a certain matter, the action plan may have two components: (1) hire an outside firm to co-source the upcoming audit and (2) begin the process of recruiting an auditor with sufficient experience who can then become the in-house resource for future reviews. Operational audits are structured in the traditional planning, fieldwork, and reporting phases. Therefore providing a simple, effective, and time-tested approach to organizing, performing, and communicating the results of the work done by the selected auditing team.
REFERENCES:
Miller, R.W. (1957, August). Operations Auditing A Study of the Newest Phase of Internal Auditing [Master’s Thesis, The University of Richmond]. scholarship.richmond.edu
Miller R.W. (1957). “Operations Auditing: A study of the newest phase of internal auditing” [Master’s Thesis, University of Richmond]. Scholarship Richmond. https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses
Murdock, H. (2017). Operational Auditing: Principles and Techniques for a Changing World. https://ertu.online/pluginfile.php/286094/mod_resource/content/1/Operational%20Auditing%20The20Principles %20%20Techniques%20for%20a%20Changing%20World.pdf
MORENO, GLORENE MAE R. (2019-105014)
1) What is the significance of appointing the right audit staff members?
ReplyDeleteAn auditor according to Clear Tax (2021) is a qualified individual who examines and confirms the accuracy of financial documents and ensures that businesses adhere to tax regulations. Their main goal is to safeguard organizations from fraud and to draw attention to any inconsistencies in accounting systems, among other things.
Auditors need to use their analytical skills to examine information, interpret it, and present innovative and alternative solutions to a problem (discoveraudit, 2021).
The credibility of the financial statements and the information they give is largely determined by the auditor's view. In comparison to unaudited financial statements, audited financial statements have a very high level of trustworthiness and validity.
In simple terms, an auditor is a person who is hired to examine a company's books of accounts, as well as the authenticity and accuracy of the transactions recorded therein. That is why selecting the proper audit team is critical, as they are responsible for the accuracy and integrity of a company's financial accounts. You'll be able to cultivate the greatest quality and supply your clients with helpful and reliable findings if you choose the proper auditor. The work of an auditor has a significant impact on your company's decision-making, and it can serve as a foundation for planning solutions to problems that may arise in the future. Audit teams with exceptional expertise are vital for the growth of any company.
(2) At what phase when do audit teams hire staff member?
Among the phases of Operations Auditing, The Phase 1 or the Planning phase conducts an engagement risk assessment with input from the client, management, and audit team members, and developing the audit scope and goals. They also develop an audit program, record expected deliverables, and arrange a first meeting with the customer. This is also the phase where they hire and includes selecting the engagement team (Acardia, 2021).
According to AuditBoard (2021) An audit team is an independent function in an organization that helps management achieve its objectives by evaluating the risk and control environment.
The whole audit team is expected to be involved or kept informed in every stage of the audit process. The process works best when both have a solid and constructive working relationship based on clear and ongoing communications. It will help to ensure that there are no surprises during the audit and will result in a better finished product.
References:
https://cleartax.in/s/duties-of-auditor
https://www.discoveraudit.org/strengths-and-skills-college/
https://www.arcadia.edu/university/offices-facilities/finance-administrative-services/office-internal-audit/audit-process
https://www.auditboard.com/blog/5-traits-of-successful-audit-teams/
HANNAH SOPHIA G. MONTILLANA
(2019-105628)
Part 1/2
ReplyDeleteOver the last few decades, internal auditing has been thought to be a very critical function for almost all organizations. Its inherent ability to provide assurance that the company’s operational activities are on the right placement is without a doubt, the very reason as to why management undertake it regardless of the type, form, and size of the businesses that they have. To put it simply, its absence would pose a serious threat to the organization’s core as many internal issues may be neglected in the process, or in the worst possible outcome that may happen, unprecedented risks that are not within the radar of the company may exist without them even realizing it become pervasive.
With that being the case, internal auditors are indeed on a very complex mission—one that necessitates a far more disciplined approach in order to demonstrate their auditing profession at its finest form and provide their clients the best experience of an objective, factual, and professional audit service. However, none of these goals would be possible if, in the first place, the members composing the audit team are not qualified enough to conduct such jobs assigned to them. Thus, in this case analysis, this introduces several factors as to why and how appointing the right audit team members will lead to an efficient and effective audit program.
Clean Energy Regulator (n.d.), in their audit determination handbook, mentioned that “selecting audit team members is an important part of the preparation stage”, which basically falls under the planning phase. This presupposes the idea that apart from the creation of audit programs in this particular phase, it is also essential to take into account the members who will be part of the audit programs to be conducted. Moreover, the same organization also indicated that the audit team leader is ultimately responsible for the selection of team members. The audit team as a whole, however, should be included in the process of evaluating the team’s combined talents and expertise, as well as whether they are qualified to undertake the engagement.
With this matter in mind, audit team leaders must make certain that when appointing members in their team, candidates should have the necessary knowledge, abilities, and availability to properly prepare for, conduct, and report on the audit. To cover such skills and expertise, most audit teams are multidisciplinary and often includes practitioners from different fields which includes but not limited to engineers, scientists, financial, legal, corporate, or any experts that fits the company’s objectives. This one is very important to take into consideration as the opinions from various profession is of great contribution to the entirety of the audit program especially in circumstances where the knowledge of the accountants alone is not sufficient to cater the needs of the whole team.
Written by:
Demabildo, John Michael F., 2019-101694, CBET-01-503A
Part 2/2
ReplyDeleteHowever, the Federation of European Accountants (2013), in their study entitled: “Auditor Selection towards Best Practices”, brought up that in every selection process, there is always a potential risk that the chosen members will not be fit for purpose regardless of them being qualified for the position. For examples, there could be a lack of overall cooperation between the members, making it very difficult for these auditors to conduct a thorough audit; or working relationships may be strained if there is a disruption in the flow of information between management and the auditor, or between the audit committee and the auditors. This only means that to mitigate this risk, it is important to plan ahead and take an approach that suits the company’s needs. Thus, to establish an effective audit team, qualifications alone of the individual members are not enough, but building professional relationship within the team is also necessary to instigate collaborative efforts in executing the crafted audit programs.
In addition, Wright (2019), in his blog, claimed that internal audit is a partner to the business and this would only be possible if internal audit team members develop and maintain positive relationships not only as to each other but also as to their clients. In short, when catering the needs of their clients, they should act as one and united. Most internal audit teams who build positive connections with their auditees frequently find that their audit clients are more welcoming and proactive during the audit process which would result in a more successful audit.
Apart from the significance of appointing the right members in an internal audit team, Schroeder (2018) lists several qualities of what he deems as “just” for audit members regardless of their specific qualifications or expertise. Few of them are explained as follow:
Integrity. A member should be able to demonstrate honesty in his line of work to earn complete trust in their professional judgments by stakeholders whom they work with. This could be done by respecting the company’s policy, procedure, decision, and manual regardless of whether there is someone watching or not while performing their respective tasks.
Competence and Professional Care. Members must maintain professional knowledge and skill at the level required by the profession to make certain that the clients receive the best service that is based on current developments and standards required for such discipline.
Communicative. Since the members are representing the entire audit team, they must always ensure that all relevant information is being well communicated in such a manner that the workflow of the whole audit program and its processes are accomplished smoothly.
With all these matters taken into consideration, it is safe to say that building great internal audit team does not happen instantly, but the very key in building a productive audit team lies in understanding that its success mostly stems from the individuals composing it, hence the need to appoint the right members in their appropriate positions.
References:
Clean Energy Regulator. (n.d.). Selection of Audit Team Members. Accessed October 12, 2021, from http://www.cleanenergyregulator.gov.au/Infohub/Audits/forms-and-resources/audit-determination-handbook
Federation of European Accountants. (2013). Auditors Selection towards Best Practices. Accessed October 13, 2021 from https://www.kacr.cz/data/pdf/FEE_Auditor%20Selection.pdf?
Schroeder, T. (2019). How to Structure an Internal Audit Team. Accessed October 12, 2021 https://blog.softexpert.com/en/how-to-structure-internal-audit-team/
Wright, A. (2019). Five Traits of Successful Audit Teams. AuditBoard. Accessed October 12, 2021 https://www.auditboard.com/blog/5-traits-of-successful-audit-teams/
Written by:
Demabildo, John Michael F., 2019-101694, CBET-01-503A
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ReplyDelete1. What is the significance of appointing the right audit staff members?
The overall objective of internal auditing is to assist all members of management in the effective discharge of their responsibilities, by furnishing them with objective analyses, appraisals, recommendations, and pertinent comments concerning the activities reviewed.· The internal auditor therefore should be concerned with any phase of business activity wherein he can be of service to management. ( Institute of Internal Auditors in the Statement of the Responsibilities of the Internal Auditor )
In many organizations, the function of the internal auditor is evolving. Candidates that can go beyond recognizing patterns and trends in data and turn them into real ideas and proposals to assist the organization stay compliant and boost efficiency should be sought. To undertake such an assessment, the audit committee must first comprehend what audit effectiveness entails and then establish the appropriate approach of evaluation. In conducting audits, it is critical to appoint competent, skilled, and experienced audit staff members who can work in line with the Code of Ethics and the International Standards. Internal auditors deal with issues that are key to a company's long-term survival and development. Another significance of appointing the right audit staff is we must observe the independence and objectivity of the auditor. The audit staff is expected to analyze management's conduct, which can be a source of conflict because the internal auditor's independence from management is required for the auditor to objectively assess management's actions and ensure that they do not influence the audit opinion. Staff assignments of internal auditors should be rotated periodically whenever it is practicable. The effectiveness of the systems and processes in place to keep the organization on track may vary depending on who will conduct the audits, that is why it is important to appoint the right personnel. They are valued by their employers because they provide an unbiased, objective, and constructive perspective. They'll need a wide range of abilities and expertise to accomplish this. One day, they might be advising a project team managing a difficult transformation program, and the next, they might be investigating a complicated international scheme.
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ReplyDelete2. At what phase when do audit teams hire staff members?
The selection or hiring of the audit staff members usually happens in the planning phase. Effective recruitment and selection ensure that the organization has the knowledge, expertise, and experience it needs to carry out its tasks and meet its goals. The planning phase takes a long time to prepare hence the objective of the auditor is to plan the audit so that the audit is conducted effectively. Planning the audit includes establishing the overall audit strategy for the engagement and developing an audit plan, which includes, in particular, planned risk assessment procedures. Internal auditors and audit staff must be independent and competent individuals who will stand up and be counted. It's a major step for an organization to entrust the quality of its work to its employees. Audit department leaders must grasp the foundations and characteristics of effective audit teams, as well as the negative practices to avoid reducing the effectiveness of an internal audit team. The key to developing efficiency for internal audit department management and hiring managers is to recognize that great teams are built on successful individuals. Building a successful internal audit team takes time, but recognizing the characteristics of high-performing audit teams is an important first step toward improving these areas in your groups and your department as a whole. The auditor has a working relationship with the company and the most effective “Internal Auditor of the Future” possesses a broad range of non-technical attributes in addition to deep technical expertise.
References:
Institute of Internal Auditors. (n.d.). What is Internal Audit? iia.org.uk. Retrieved October 17, 2021, from https://www.iia.org.uk/about-us/what-is-internal-audit/
Miller, R. W. (1957). Operations auditing, a study of the newest phase of internal auditing. University of Richmond UR Scholarship Repository. Retrieved
October 17, 2021, from https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses.
PABLO, MA. ROWENA - (2019-106997)
ReplyDelete1/2
1. What is the significance of appointing the right audit staff members?
- In a business organization each in every one of the employees or workers has its own task and duties to perform for the success of the company. Each of them has a responsibility to do that is different from the others, so the board of directors hires or appoints someone based on the skills, knowledge and the area of their expertise. The role of an audit member is to provide an overview of an audit committee’s responsibilities in overseeing financial reports and related internal controls, risk, ethics and compliance. The auditors must understand that management bears the responsibility for the success of the organization (Miller, 1957 p. 74). Audit staff members is an independent unit in a company that assists management in achieving its goals by assessing the risk and control environment. Hiring and selecting the right audit staff members will bring great results to the company. Internal audit plays an important function in providing independent assurance and serving as a trusted advisor to the business, but there are some characteristics that distinguish a high-performing audit team from the rest. There must be a competent internal auditing staff which represents a wide range of technical abilities and practical experience (Miller, 1957 p.73). A great auditor demonstrates strong critical thinking skills. They have the ability to adjust to changing circumstances. An auditor that is technologically knowledgeable knows how to use a variety of tools and software. The best auditors are skilled at generating positive and strategic partnerships. Above all, an exceptional audit professional is continually looking for opportunities to contribute value to the team, company, and profession.
-BOADO, Loven B. (2019-105729)
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ReplyDelete2. At what phase when do audit teams hire staff members?
- Apparently, in order to begin the entire auditing procedure, the first thing to do is to hire or select the people who will perform the task to be able to achieve the firm’s goal and that is to increase the overall effectiveness of the company. The phase wherein the audit team will hire or select his or her members is in the planning stage or selection phase. In this phase, they will plan and prepare carefully to select its members. The audit team leader is ultimately responsible for the selection of its team members. In choosing the team members, you have to be careful and meticulous for you to have a great and responsible team. The audit team as a whole, on the other hand, should be included in the process of evaluating the team's combined talents and expertise, as well as whether they are qualified to undertake the engagement. The audit team leader must ensure that the members of the audit team have between the knowledge, skills and availability required to satisfactorily prepare for and carry out the audit and prepare the audit report. In order to cover the necessary skills and expertise, audit teams are typically multidisciplinary. The qualities that distinguish exceptional internal auditors are also those that distinguish effective audit teams. Internal audit department heads must grasp the foundations and characteristics of effective audit teams. The key to forming and maintaining effective and efficient team lies in understanding that successful teams are formed from successful individuals. Building a successful internal audit team takes time, but recognizing the characteristics of high-performing audit teams is an important step toward improving these areas in your groups and your department as a whole.
References:
* Miller, R.W. (1957, August). Operations Auditing, a Study of the Newest Phase of Internal Auditing. Master’s Theses, University of Richmond. Retrieved October 13, 2021 from https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses
*Wright, A. (2019, May 1). 5 Traits of Successful Audit Teams. AuditBoard. Retrieved October 13, 2021, from https://www.auditboard.com/blog/5-traits-of-successful-audit-teams/.
* Selection of Audit Team Members. Clean Energy Regulator Crest. (n.d.). Retrieved October 13, 2021, from http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx.
* Audit Process and Phases | Arcadia University. (n.d.). Retrieved October 13, 2021, from https://www.arcadia.edu/university/offices-facilities/finance-administrative-services/office-internal-audit/audit-process.
*Bujno , M., Hitchcock, C., Parsons, K., Lamm, B., Philipps, H., & McCormack, D. (2018, April). The role of the audit committee. Audit Committee Resource Guide. Deloitte United States. Retrieved October 13, 2021.
-BOADO, Loven B. (2019-105729)
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ReplyDeleteCASE ANALYSIS
I. EXECUTIVE SUMMARY
According to the Journal of Accountancy (2001), in the article of “The Top 10 Audit deficiencies”, mentioned that (1) CPAs CAN LEARN HOW TO BETTER DETECT financial statement fraud by understanding the mistakes others made in cases where the SEC imposed sanctions on auditors for their association with fraudulently misstated financial statements. This article focuses on 45 SEC enforcement actions against auditors in the period 1987 to 1997. (2) THE MOST COMMON PROBLEM, IN 80% of the cases, was the auditor’s failure to gather sufficient audit evidence. Many of the cases involved inadequate evidence in areas such as asset valuation, asset ownership, and management representations. (3) IN ALMOST HALF OF THE ENFORCEMENT ACTIONS, the SEC alleged the auditors failed to apply GAAP pronouncements or applied them incorrectly. One way firms can deal with this problem is to expand the coverage of technical accounting topics in firm-sponsored training. (4) AUDIT PROGRAM DESIGN WAS A PROBLEM CITED in 44% of the cases. Auditors failed to properly assess inherent risk and adjust the audit program accordingly. The best way for a firm to remedy such deficiencies is to promote more involvement by audit firm executives—partners and managers—in planning the engagement. (5) OTHER COMMON AUDIT PROBLEMS INCLUDE FAILURE to exercise due professional care and the appropriate level of professional skepticism, overreliance on inquiry as a form of audit evidence, deficiency in confirming accounts receivable, failure to recognize related party transactions, and assuming internal controls exist when they may not.
II. BACKGROUND OF THE STUDY
This paper is about the significance of appointing the right staff members and at what phase when do audit teams hire staff members. First and foremost, audit phases include planning, fieldwork, reporting, and follow-up. This is relevant to be adhered to by the operational auditor because it provides versatility in the business environment. Wherein, it can be used and applied when certain phenomena have undergone in the company’s operation. Also, audit phases help to provide continuous improvement in the management of the company because it involves jotting down old practices and suggesting new and efficient ways that have to be practiced by the company. Lastly, following audit phases is a powerful and straightforward tool because it will help to resolve new and recurring issues which therefore minimizes waste and increases efficiency. Basically, following audit phases is important especially in the operation of a company because it helps to efficiently and effectively identify risks that the company might face in the future and create plans ahead of time on how to overcome them. Inlined to this, the planning phase is the most important stage of the auditing phase because it involves the hiring of staff members to create teams. The planning phase should not be taken for granted because the overall performance of the operation of the company is dependent on the competence of auditing teams.
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ReplyDeleteIII. CASE EVALUATION
As to analysis, in the aforementioned case at the beginning of the paper, usual problems faced by most companies are auditor’s failure to gather sufficient audit evidence, failure to apply GAAP pronouncements or applied them incorrectly, failure to exercise due professional care and the appropriate level of professional skepticism, overreliance on inquiry as a form of audit evidence, deficiency in confirming accounts receivable, failure to recognize related party transactions, and assuming internal controls exist.
These deficiencies happened because the company fails to appoint the right audit staff members in the first place. That is why it is significant to choose an auditor who is competent and objective who could present timely and unbiased information about the operation of the business.
IV. CONCLUSION AND RECOMMENDATION
The hiring of staff audit members should not be just taken for granted especially in the position of operational auditor because this will be the endeavor that will gather and evaluate evidence to recommend suggestions for the efficient and effective management of the operation of the company to the board of directors. In relation to this, the company must set standard qualifications and requirements upon appointing the position. Another thing is, the company must wholeheartedly accept and support the auditing staff and operation auditing to build full-fledged members of the management team. Since it is encouraging to do what is just when you have other people who support and guide you. Also, one way firms can deal with the operational auditing problem is to expand the coverage of technical accounting topics in firm-sponsored training because when an auditor is knowledgeable and well experience is he could at least minimize the failure of audit to present an effective and efficient report.
V. REFERENCES
BEASLEY, M., CARCELLO, J., & HERMANSON, D. (2001). Journal of Accountancy: Top 10 Audit Deficienceies. Retrieved October 17, 2021 from https://www.journalofaccountancy.com/issues/2001/apr/top10auditdeficiencies.html
Operational Audit Overview: Definition, Process and Purposes (Jul 16, 2021) Retrieved October 16, 2021, from https://qvalon.com/blog/operational-audit-overview-definition-process-and-purposes/
Miller, R., (1967) University of Richmond Virginia; Operations auditing, a study of the newest phase of internal auditing https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses
By: Escritor, Rheabelle|CBET01 503A|2019-106337
(1) What is the significance of appointing the right audit staff members?
ReplyDeleteAn audit committee plays an vital role in supporting the company with financial reporting, internal control structures, risk management systems, and internal and external audit functions. Their major goal is to provide oversight of both the financial reporting and auditing processes. To understand the potential impact on financial statements, the audit committee should examine major accounting and reporting concerns, as well as current professional and regulatory declarations. Appointing audit staff members is an important component of forming an audit committee since it necessitates a lot of discussion about who will be the members who are suitable for upper-level jobs. When they appoint audit staff members, they must thoroughly check the talents and capabilities of the auditors since they need people who can perform exceptionally well as auditors.
Appointing the right audit staff members is critical because they are one of the company's branches that will help to strengthen the company's credibility with stakeholders. One of the characteristics that the shareholders are looking for is an audit staff member who communicates a message of independence, dependability, and trust. They are the ones who can trust the sets of data and financial accounts of a corporation. They are also the one that provides some opinions that enables the organization to have a better decision making. It also increases confidence among present and potential constituents, contributors, creditors, and other stakeholders.
(2) At what phase when do audit teams hire staff members?
During the selection phase, audit staff members are hired. The audit team leader is ultimately in charge of team member selection. The audit team as a whole, on the other hand, should be involved in determining the team's combined talents and expertise, as well as whether they are qualified to carry out the engagement. Because the hiring and selection of team members is so important, this process must be taken seriously and objectively in order to choose the best people for the company's future. The audit leaders must analyze the capabilities of possible audit staff members in order to establish whether or not that person is compatible with the team's characteristics and objectives. To assess if a person is qualified to meet the audit leaders' expectations, they must see that the person has sufficient knowledge and experience in the subject matter being audited. The lower the amount of knowledge and experience, the more likely an expert will be required in the team, according to Clean Energy Regulator (n.d.). The audit leader will assess that person's professional competence and objectivity, as well as gather enough and adequate proof that the expert's audit processes are appropriate and meet the stated audit risks.
Appointing, evaluating and awarding an independent auditor is a vital role for review boards. It is subjective and differs from firm to other company. These processes, in general, assist the audit committee in monitoring the auditor's work and ensuring the audit's success. The independent auditor is responsible for performing a high-quality audit; nevertheless, as part of their annual activity, audit committees should thoroughly analyze and review the work of the statutory auditor and take all necessary actions to support the statutory audit's quality and effectiveness.
References:
Audit Committee Role & Responsibilities. (n.d.). CFA Institute. Retrieved October 14, 2021, from https://www.cfainstitute.org/en/advocacy/issues/audit-committee-role-practices#sort=%40pubbrowsedate%20descending
Selection of audit team members. (n.d.). Clean Energy Regulator. Retrieved October 14, 2021, from http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
ReplyDelete(1) What is the significance of appointing the right audit staff members?
Human resource plays a vital role in the success on an entity. A human resource is one person within a company's overall workforce, with each person lending their skills and talents to the organization to help it succeed. Any person willing to trade their labor, knowledge, or time for compensation in an effort to improve the organization is a human resource. It doesn't matter if they're part-time, full-time, freelance, or contract employees (Heathfield, 2021).
Internal auditor is an example of a human resource. As stated by Clarke (2019), there are three things that companies should consider in hiring or appointing audit staffs. First, they have to make sure that the internal auditor upholds high ethical and integrity standards. They’re job is to improve the efficiency and effectiveness of the business through evaluating its processes and procedures, assess risk and help the management mitigate those risks, and ensure that the entity is in compliance with the laws and ethical standards. Second, the internal auditor must know the scope and objectives of their position. For example, if they are an operational auditor, they must improve the efficiency of the business process procedures by auditing to understand operational risks and other problem related to fraud and compliance. Lastly, allow the position to be and remain objective and impartial; an auditor being resilient under pressure to bend or change their assessment is actually a good thing.
According to different authors on Escobar’s article in 2017, the audit team is certainly of vital importance in auditing process as the main responsible of fulfilling the objectives of an audit. They should be competent enough to do the audit and work all together in the assessment of several standards. Audits are now being considered by businesses as a legitimate way to improve that is why internal auditor should maintain level of competence. In fact, when negative results are reported, the auditor's competency is the first thing that is called into doubt (Miller, 1957). Having a qualified individual to be an auditing staff member will optimize the effectivity of the audit.
(2) At what phase when do audit teams hire staff members?
Just like in our everyday life, we always prepare the things that we will be needing before doing something. In my opinion, audit teams hire staff members on or before the planning phase of audit. Hiring audit staffs on or before the planning phase will result to a smooth operational audit because they have the auditing personnel working simultaneously to accomplish a task.
References
Clarke, I. (2019, May 1). What Is An Internal Auditor & Why Should You Hire One? Retrieved from Linford & Co., LLP: https://linfordco.com/blog/what-is-an-internal-auditor/
Escobar, D. (2017). Auditors selection and audit team formation in integrated audits. Quality Management, 65-57.
Heathfield, S. M. (2021, February 28). Management Careers. Retrieved from The Balance Careers : https://www.thebalancecareers.com/what-is-a-human-resource-1918144
Miller, R. W. (1957). Operations Auditing, A Study of the Newest Phase of Auditing. 56-57.
ROGELIO, JAN LORRAINE M. (2019-105301)
(1) What is the significance of appointing the right audit staff members?
ReplyDeleteInternal audits evaluate the internal controls a company has established over key operations. The audit will look at the validity of financial reporting and compliance with laws and regulations that govern the company's operations. Auditors can provide any technical guidance and assistance the company needs to establish appropriate internal controls, and comply with applicable rules and regulations (Oster, n.d.). In addition, in a thesis conclusion by (Miller, 1957) there are certain qualifications in conducting operations auditing and upon meeting these qualifications, the auditing staff will be qualified to review and appraise operations from management’s viewpoint. Thus, appointing the right audit staff members is important.
The significance of choosing the right audit staff members will help the organization achieve its objectives. According to (CBIZ MHM, 2018), regardless of size or type of operation, all companies can benefit from having an audit committee to help with corporate governance strategies and, ultimately, provide the best chance to ensure the organization's success. An audit committee must be composed of the right people with the right mindset and relevant expertise to be successful. Maintaining independent audit committee members is crucial to ensuring effectiveness. Members must be able to exercise their own judgement and be unduly influenced by management or personal financial incentives that could cloud their ability to exercise their responsibilities. Moreover, audit committees will oversee is reviewing and approving your company's financial statements to ensure they are complete, accurate, transparent and fairly stated in accordance with the applicable standards of the reporting jurisdiction. On top of its essential financial reporting duties, the audit committee will work to identify your company's major risks, as well as review the existing internal controls that are in place to protect your company from those risks. Lastly, as an independent entity, the audit committee helps ensure there are checks and balances in place to protect your company from fraud. The committee should perform an assessment of your company's risks to determine what type of fraud would most likely affect you and provide effective monitoring of these identified risks.
Conducting operational/internal audit does cost both time and money. When managers and employees are engaged with the audit, they will be pulled away from their usual activities. For complex organizations, an operational audit can be relatively time-consuming because each step of the process must be analyzed (Accountants Go Cardless, n.d.). Hence, choosing the right audit staff members would justify these costs in exchange for a reliable and sound audit report. Because this report will tell whether the organization can achieve its objectives in relation to its existing policies and procedures of the operation or, if not, will provide and recommend solutions to achieve the organizations objective.
(2) At what phase when do audit teams hire staff members?
ReplyDeleteSelecting audit team members is an important part of the preparation stage (Clean Energy Regulator, n.d.). I believe the phase when audit teams hire staff members is most likely in the planning phase, it is to prepare and define each staff member roles in conducting internal audit. During the planning phase of each project, the Internal Audit staff gather relevant background information and initiate contact with the client. Auditors meet with University leadership and clients to identify risks and determine the objectives and scope of the audit as well as the timing of fieldwork and the report distribution (Grabillo, 2021). The overall responsibility for the selection of team members rests with the audit team leader. However, the audit team as a whole should be part of the process of evaluating the combined skills and experience of the team and whether they are appropriate to perform the engagement. The audit team leader must ensure that the members of the audit team have between them the knowledge, skills and availability required to satisfactorily prepare for and carry out the audit and prepare the audit report. Where significant deficiencies in skills or experience are identified, and cannot be rectified through internal resourcing, the audit team may need to invite an expert from outside its organization into the team. And lastly, the audit team leader will need to consider whether the team has sufficient supporting resources—such as time, equipment and access to management and key personnel—to complete the engagement (Clean Energy Regulator, n.d.).
References:
Accountants Go Cardless (n.d.). What is an operational audit? Accessed October 17, 2021. https://gocardless.com/en-us/guides/posts/what-is-an-operational-audit/
CBIZ MHM. (2018, May 11). Characteristics of an effective audit committee. Retrieved October 17, 2021 from, https://www.mhmcpa.com/insights/article/characteristics-of-an-effective-audit-committee-1
Chicago State University. (n.d.). Audit Process https://www.csu.edu/internalaudit/auditprocess.html
Clean Energy Regulator. (n.d.). Selection of audit team members Accessed October 17, 2021.
http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
Grabillo, M. A. (2021). Operational Audit: What are its Phases? https://markgrabillo.blogspot.com/2021/10/operational-audit-what-are-its-phases.html
Miller, Russell William, "Operations auditing, a study of the newest phase of internal auditing" (1957). Master's Theses. Paper 792.
Oster, K. V. (n.d.). Cost Audit Process. CHRON. Retrieved October 17, 2021 from, https://smallbusiness.chron.com/cost-audit-process-14097.html
TANDAYU, LEXTER M. (2019-106755)
CBET-01-403A
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ReplyDelete(1) What is the significance of appointing the right audit staff members?
One of the most important tools in conducting an audit is the audit staff members. It is essential to appoint the right audit staff members because they perform a critical job and are responsible for the company's vulnerability. The audit committee's major responsibility is to oversee the financial reporting process, the audit process, the company's internal controls system, and compliance with laws and regulations. One of the most important attributes an auditor must possess is independence, as they should not be influenced others especially the company insiders to prevent fraud, intentional accounting errors and irregularities. It is also important for them to be accountable, honest and transparent in their job. As per the requirements of Division 2.2 of the NGER Audit Determination, the audit team leader must ensure that the members of the audit team have between them the knowledge, skills and availability required to satisfactorily prepare for and carry out the audit and prepare the audit report. There are no formal requirements for the appointment of audit staff, apart from the fact that the company's CEO should not be a member of the committee and may not nominate or have someone represent him or her as a member. The company may appoint three or more staffs in the committee. “An audit is usually conducted by an audit team, which is characterized by a hierarchical structure and division of labor.” Audit teams usually comprise the audit partner, senior-manager/manager, audit senior, audit staff, and specialists such as tax professionals (Muczyk et al., 1986) and whatever decision they come up with should be according to the simple majority of the committee.
(2) At what phase when do audit teams hire staff members?
ReplyDeleteOne of the most important aspects of a successful audit is the entire audit team, which is made up of a number of staff members. Staff audits provide a current assessment of the workforce and serve as the foundation for later benchmarking and workforce assessments. They also provide the necessary database for accurate cost calculation of alternative severance and pension methods, as well as the eventual disbursement of benefits to employees. Since they're the ones who will complete the entire auditing process, selecting each staff member is critical and must be handled with caution. The start of hiring of staff members happens in the first audit phase which can be the planning phase or the selection phase whichever comes first because upon searching in the internet some of the audit phase doesn’t have the selection phase so the planning stage comes first but since I’ll base my answer in the module that was provided then my answer would be the selection phase because you cannot start the whole auditing process without having the needed staff members who has the skills, attributes and experience that they can contribute. In the planning phase they should already have the needed staffs, background information and other materials that they might need to start the auditing because this is the preparation stage where they do the planning that they define the scope and objectives that will determine the coverage of the auditing, review the past audits, creation of audit plan to be executed as well as planning the timeline and budget of the audit and from this stage they are also assigning the different roles to other staff members as they already start the commencement meeting.
References:
CFA Institute (NA). Audit Committee Role & Responsibilities. Retrieved from: https://www.cfainstitute.org/en/advocacy/issues/audit-committee-role-practices#sort=%40pubbrowsedate%20descending
Department of local government, sport and Cultural Industry (NA). The appointment, function and responsibilities of audit committees. Retrieved from: https://www.dlgsc.wa.gov.au/department/publications/publication/the-appointment-function-and-responsibilities-of-audit-committees
PPIAF.org (NA).Assessing the Size and Scope of Labor Restructuring. Retrieved from: https://ppiaf.org/sites/ppiaf.org/files/documents/toolkits/LaborToolkit/Toolkit/module3/staff_audits.html
-Rochel Bulatao
2019-101054
CBET-01-503A
(1) What is the significance of appointing the right audit staff members?
ReplyDeleteAccording to the Institute of Internal Auditors (IIA), “Internal auditing is an independent, objective, assurance and consulting activity that adds value to and improves an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.” This also refers to operational auditing where it is defined by Hernan Murdock (2016) as a future-oriented, systematic, and independent evaluation of organizational activities. In this type of auditing compared to external auditing that uses financial statements as their only basis of verification, financial data may be used, but the primary sources of evidence are the operational policies and achievements related to organizational objectives.
The responsibilities in operations auditing are broader than in external auditing, it requires complex qualities that an auditor must have in order to reach the efficient and effective operation of an organization. In line with this, an internal auditor must have the best audit staff members as much as possible. As stated by the Institute of Internal Auditors (IIA), knowledgeable and competent resources within internal audit are needed to ensure assurance and advisory work are performed in alignment with the organization’s expectations and in conformance with widely accepted principles and standards. Internal audit is most effective when its audit staff members’ level, competence, and structure are aligned with the organizational strategy. Moreover, similar to the head of internal audit, its staff members must possess certain qualities for them to perform their responsibilities as effectively as possible. Having the right audit staff members is vital in internal auditing for the reason that in every phase of auditing, staff members have different responsibilities but all of these are essential and part of the achievement of the internal auditing’s main objective. Audit staff members must also be as knowledgeable as the head of the internal audit as well as good communication skills for them to properly perform their parts that will contribute to the audit’s success and in case of problems encountered during the audit, staff members can easily raise it to the head auditor and solve it since they fully understand each other and the process where the staff member is taking part. Staff members must also possess great accounting skills since they deal with financial records and operations which are also based on accounting standards and different methods.
According to the study of Russel William Miller, a qualified internal auditing group is admirably "fitted" to the task of preparing reports of this type. Not only because of their "technical" qualifications but also because they are "businessmen and "members of the firm.” Although they are well-grounded. In "scientific management” theory, they can "talk the language" or their company with local .management. In its highest sense, operations auditing is performed by competent and imaginative people who are devoted to the betterment of the whole organization.
References:
Institute of Internal Auditors (IIA)
Internal auditing: Adding value across the board. https://na.theiia.org/awareness/PublicDocuments/Internal_Auditing-Adding_Value_Across_the_Board.pdf#:~:text=Internal%20auditing%20is%20an%20independent%2C%20objective%2C%20assurance%20and,effectiveness%20of%20risk%20management%2C%20control%2C%20and%20governance%20processes.
Miller, R.
(1957). Operations auditing: A study of the newest phase of internal auditing. Operations auditing, a study of the newest phase of internal auditing (richmond.edu)
Murdock, H.
(2016). Operational auditing: Principles and techniques for a changing world. Operational Auditing The Principles Techniques for a Changing World.pdf (e-rtu.online)
CHAVEZ, CATHERINE H. (2019-101209)
CBET-01-502A
ASPILLAGA, HERMANA D.
ReplyDeleteCBET-01-501A
1.) What is the significance of appointing the right audit staff members?
The significance of appointing the right audit staff members is give an up-to-date analysis of the work force and provide the basis for subsequent benchmarking and work force analyses. They also provide the necessary database for accurate estimation of the costs of alternative severance and pension strategies, and for the eventual disbursement of payments to workers. The right audit staff members an essential first step in assessing labor issues in the enterprise, bring personnel records up to date, identify and eliminate ghost workers who are still on the payroll. Provide a basis for developing severance and early retirement options and for estimating costs if downsizing is needed. Improve the accuracy of subsequent work force analysis, establish effective record-keeping procedures in order to allow management to control or regain control of the payroll, provide management with adequate human resource information, and comply with labor laws and regulations. Provide a basis for review of job positions, pay grades and scales. In some enterprises, harmonization of staff terms an essential task prior to the pixel per inch transaction. This is particularly the case where a new operating company is to be formed, perhaps drawing staff from civil service and public enterprise cadres.
Operations auditing has grown to sizable proportions in large-scale business enterprises which are instituting, or augmenting, internal auditing staffs. Each major bureau and/or department of the federal government either has, or will soon have, an internal auditing department. These departments have as one or their major activities the appraisal of operations from a "management viewpoint" similar to that utilized in operations auditing as practiced by internal auditors.
Employee numbers, categorized by type of employment (precise definitions will depend on national regulations). For example, permanent full-time and part-time employees; short-term casual, seasonal, or temporary workers; temporary workers engaged for many years (who may have acquired additional rights); professional staff recruited on ad hoc emergency terms; semipermanent workers; contract workers; workers on disciplinary suspension; workers on deputation from elsewhere in government; and workers on administrative leave.
Employee numbers, categorized by operational or social criteria, such as location, job title, function, salary grade, level of education, age, gender, ethnic group, years of service, and other categories relevant to the country or the enterprise.
Employee skills. Skills assessments are an integral part of the staff audit. They are particularly important in terms of maintaining service levels and quality, and they generally include assessment of individual employee functional or technical skills; identification of key individuals or groups of workers whose knowledge, experience, and institutional memory are critical to the effective operation of the enterprise; and the identification, through some form of gap analysis, of the difference between today's skills and competencies and those required for the future success of the enterprise.
Employee compensation for each employee, or category of employee, including basic monthly salary, cash and other allowances (for example, civil servants in Yemen receive a basic salary and up to 16 allowances), inkind benefits (for example, housing, travel, and subsidized loans), and pension contributions by the employer.
Liabilities of the enterprise to the employee, which may be important information to collect during the staff audit, particularly in enterprises in acute financial crisis where there may be arrears of salaries or benefits payable to employees, arrears of pension or social insurance payments attributable to employees (both employers' contribution and employee contribution), and arrears of payroll taxes due to the tax authority and other payroll deductions.
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ReplyDelete(1) What is the significance of appointing the right audit staff members?
Operations auditing is the phase of modern internal auditing that renders constructive services to management in the form of objective analyses, appraisals and recommendations about operations within the whole organization (Miller, 1957). It is different from other types of auditing because it has a detailed and deeper understanding of the processes and focuses on the operating activities of the company. It aims to have a precise and relevant audit of the internal policies and procedures of the business, identifying the risks that the business can encounter, and especially to maximize the effectiveness and efficiency for the company to achieve its goals specifically in terms of its productions and operations.
According to Miller (1957), the operations auditing activities include reviewing and appraising the soundness, adequacy and application of accounting, financial and operating control. Also includes the compliance of internal policies and procedures and assessing the quality of the assigned responsibilities. In these activities, we already know how important are the internal auditors for the success of the operations of every company. That is why it is significant for the management to appoint the right audit staff members.
The internal auditing department has a lot of work to do, that’s why audit staff is needed. But this staff should be thoroughly selected. The audit staff should meet the standards and required qualities of the entity. They should know all about the procedures in the production and personally observe the operations as a whole for them to have an accurate audit. Not just that, but should also have the skills and characteristics that an audit staff should possess. Some of these, are being independent, not bias and has the quality of professional skepticism. They should be competent and productive, able to do all the tasks assigned to them and not easily intimidated by other colleagues that may deceive them. Audit staff must think of being a representative of management, because they portray a big role in the company, such as giving interpretations of the report and providing recommendations and reasonable assurance.
If the company hired the right audit staff members, it has a high possibility that they will be successful because this audit staff will surely do their duties and responsibilities to help and provide the entity the most effective and efficient way in conducting the operations of the company.
---CARANDANG, CELINE D. (2019-104928)
(2) At what phase when do audit teams hire staff members?
ReplyDeleteOperational auditing differs from traditional auditing as to its purposes wherein the former refers to the method of examining the operation of an organization, which focuses internally, through financial records and other evidence from different departments that are essential to perform the operational audit effectively. In order to carry out an effective audit is to minimize the time and avoid disrupting ongoing activities hence, operations audit has its phases to guide the auditors to achieve not just the audit itself but also the operations of the organization. Operations audit phases are sort of similar to traditional auditing that comprise the sequence of planning, fieldwork, reporting, and follow-up. Each consists of activities that occur during their respective performances.
Operations auditing penetrates into every phase of activities where it may be of service to management, but the possibility is recognized that situations involving extremely technical problems may arise. In such instances, audit staff members are needed and specialists (from within and without the organization) are consulted. Based on various sources and literature I’ve read regarding phases of operational auditing, audit teams hire staff members on the selection under the phase of planning wherein the members of the auditing department would be selected and will then appoint a lead auditor. In addition to that, when the members are finally selected, there are also assigned responsibilities to each of them that will form part of every activity in the next phases.
Reference:
Miller, R.
(1957). Operations auditing: A study of the newest phase of internal auditing. Operations auditing, a study of the newest phase of internal auditing (richmond.edu)
CHAVEZ, CATHERINE H (2019-101209)
CBET-01-502A
ASPILLAGA, HERMANA D.
ReplyDeleteCBET-01-501A
At what phase when do audit teams hire staff members?
The great diversity or management services indicated by the above-cited study is found in medium size public accounting firms. It is true that many of these firms have hired management engineers but it is also true that many or the auditors have become involved in the newer phase of the business. This point was made clear recently by Louis A. Ryan, partner in Andrews, Burket and Co. of Richmond, Virginia. When a medium sized firm decides to embark upon the provision or management services.
Auditing is not restricted to financial institutions and quality systems. Any organization or process can be audited to determine adherence to process and procedures. An audit of staffing procedures can reveal inconsistencies, defects in the process and legal issues. A thorough audit of a staffing process can give insight to human resources challenges, such as increased employee turnover or difficulty in attracting top talent. Determine a period of time to audit, select an inter-departmental audit team and match actual hiring outcomes to established standards.
References:
https://ppiaf.org/sites/ppiaf.org/files/documents/toolkits/LaborToolkit/Toolkit/module3/staff_audits.html
https://sg.docworkspace.com/d/slPy81ZVkz_KviwY
https://smallbusiness.chron.com/audit-approach-staffing-employees-17423.html
Velasco, Mely Jane
ReplyDelete2019-103477
1. What is the significance of appointing the right audit staff members?
When it comes to a business, hiring the right person is essential. Your business is only as good as your employees. From the front desk to the manager offices, every employee represents a facet of your business to clients, and to the community at large. Hiring the wrong person can cost you more than just money. In Auditing, having the right audit committee will play a major role in the success of the audit. The primary purpose of a company’s audit committee is to provide oversight of the financial reporting process, the audit process, the company’s system of internal controls and compliance with laws and regulations. It is important to appoint the right staff and members to avoid audit failure. The auditors are responsible for detecting material misstatements caused by fraud but without the right audit staff, the auditors might not fulfill its responsibilities. Having the right audit staff members may reduce professional liability as well.
2. At what phase when do audit teams hire staff members?
Selection phase is where auditor assess risk at the end of the calendar year and develop audit plan for subsequent year based on the assessment and availability of resources. And then planning, which I think is the most important phase in auditing, this is where they communicate with their client and gather background information about their client and client’s business. Then next phase is where you execute your plan. Reporting phase is when you report the summary of findings and other concerns to your client and lastly, the follow-up phase where internal auditors follow-up their findings within one year. In these five phases, I think Audit teams , in selection phase assess whether they need more staff or not and then hire audit staff in the planning phase if needed. One of the standard in audit planning is team composition. Team composition is an assignment of the engagement team and scheduling of resources. It is the level of experience of the team, use of experts, and scheduling of who will review and when are all variables that can significantly alter the engagement approach and affect its success. Assigning complex or difficult areas of an audit to the appropriate level of expertise, depth of experience, or extent of review is an important step in reducing the likelihood of a mistake.
References :
Grabillo, M. A. (2021). Operational Audit: What are its Phases? https://markgrabillo.blogspot.com/2021/10/operational-audit-what-are-its-phases.html
Gartland, D. (2017). The importance of audit planning
https://www.journalofaccountancy.com/issues/2017/sep/importance-of-audit-planning.html#:~:text=Often%20overlooked%2C%20the%20real%20benefit,help%20reduce%20professional%20liability%20risk.
Mancino J. (1997). The Auditor and Fraud
https://www.journalofaccountancy.com/issues/1997/apr/mancin
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ReplyDelete(2) At what phase when do audit teams hire staff members?
Before conducting auditing in a company, they should have a plan first. Planning is a very important process because it is where all the activities begin. If there is no plan then there will be no directions to guide the internal auditors and management of the company. Among the phases that the operational audit has, I believe that the hiring of the staff members also happens in the Planning phase. In hiring the appropriate staff members, they should undergo an interview to test their knowledge, behavior and attitude. Also, how they can cooperate with others must be observed and tested. That they can adapt to any changes inside the organization and has that enthusiasm in doing the task assigned to them. They must prove to the company that they are the right ones to be hired as staff members. The workers and employees portray a vital role in the company or an organization. They have their assigned tasks and missions to do that is why they should be evaluated well, assess well and really undergo screening to really know if that staff member is really suitable and capable enough to do all the works in the entity. And those activities are conducted in the planning phase. Having competent, independent, capable and hard-working staff can help the company to achieve its goals and to be successful in its productions and operations.
REFERENCES
Grabillo, M. A. (2021, October 2). Glimpse of a CPA’s mind. Operational audit: What are its phases? https://markgrabillo.blogspot.com/2021/10/operational-audit-what-are-its- phases.html
Miller, R.W. (1957). Operations auditing, a study of the newest phase of internal auditing. Master’s Theses. Library University of Richmond Virginia. https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters- theses
Murdock, H. (2017). Operational auditing: The principles techniques for a changing world (1st ed.). Auerbach Publications. https://doi.org/10.1201/9781315368733
--- CARANDANG, CELINE D. (2019-104928)
--- CBET-01-502A
Hi Micah Lei Longno,
ReplyDeleteThanks for bringing great ideas to the table! I could see how much effort you put into creating your work. You think about things in such a creative way.
Hi Erica Bandola,
I could tell you put a lot of effort into your work. You have such a unique way of thinking at things. Thank you for sharing your brilliant thoughts!
Hi Rence Retone,
You have such an innovative way of thinking at things and I could tell you put a lot of time and thought into your work. Thank you for contributing such brilliant thoughts!
- COLINE BERTIZ (2019-100749)
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ReplyDeleteSince auditors play a large part in business improvements and risk avoidance, they use techniques in line with their priorities. Aside from that, there are internal and external factors that affect their work such as the management’s decision-making and outside affairs.
The Institute of Internal Auditors (IIA) conducted a survey in 1953 to identify the most vital factor in the success of internal auditing (Miller 1957). The respondents compose of representative members of the institute. Among others, the highest number of votes is for the competence and characteristics of the audit staff members. Now, what is the significance of appointing the right members?
Appointing the right members would help add value to the profession of internal auditing. As the work of auditors continues to evolve, from financial to operational and even management, selecting the most competent auditor with various capabilities and experience is essential. Not only that, Miller affirms that the internal auditing staff is the keystone of the financial management program because the auditors are actively participating in problem-solving in management problems.
For Miller, if the qualifications that would be mentioned below are satisfied, the auditing staff is prepared enough to examine business operations and suggest findings and recommendations.
• Accounting and statistical skills
• Experience in “paper” standards
• Independence and impartiality
• Familiarity in formal and informal procedures
Back then, D. O. Beasley, an assistant secretary of the interior department who believed that auditors and accountants are not great enough to suggest in administrative aspect, wrote to the Senator Committee on Government Operations. Stereotypes against both professions are evident, and the auditors in the department of the interior did not win his approval to participate in administrative decision-making.
If Beasley is present in our times, he is management who refuses to accept change. Not only that, but he also embodies people who are unaware of what auditing and accounting are. We must see that the perspective towards the profession is not like that, may it be accounting or auditing. If there is a Jurassic Auditor who does not succumb to the latest auditing trends, then there are many unaware [of auditing] Jurassic out there. The only difference is, they are not going extinct. That’s why we should appropriately determine the right staff members.
DUEÑAS, ALYSSA MAE B. (2019-102691)
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ReplyDeleteNow that we have learned the importance of staff selection, at what phase do audit teams hire staff members?
This hiring process is done in the selection phase that Grabillo (2021) has identified or the planning phase of Murdock (2017). Not minding the term, it is usually at the conception of building the auditing plan or before that. To elaborate further, Seetharam Kandarpa identifies eight stages of conducting a quality internal audit (Eby, 2017).
• Initiating the Audit
• Preparing Audit Activities
• Conducting Audit Activities
• Collecting and Verifying Information:
• Generating Audit Findings
• Conducting the Audit Activities
• Preparing and Distributing the Audit Report
• Completing the Audit
If I were to identify where the hiring process is in Kandarpa’s, it would be in the stage of initiating the audit. Right before the preparation of audit activities which would be the planning phase of Murdock. Kandarpa’s 1st stage includes meeting the auditees and any assigned leader together with the feasibility analysis of the audit project to make sure that the goals are attainable. The people must come first before brainstorming ideas.
Auditors should always strive to make themselves more knowledgeable, skillful, and updated on the latest trends. As the hiring process does not only consider a few qualities, it would not hurt to challenge yourself in experiencing different circumstances, especially those unforeseen ones for which the auditors prepare. Moreover, since an auditor is like a jack of all trades, it would be his advantage to keep the profession alive. We may have all the skills we want, but if the value of internal audit is not accepted by the management, just like Beasley did, auditors would go back to being restricted and badly stereotyped. Lastly, auditors should always affirm to themselves that they are important in the industry.
References:
Eby, K. (2017, September 19). (Ed. 2021, July 19). Operational Audits 101: Processes, Examples, and Checklists. Smartsheet. Retrieved from October 17, 2021 from smartsheet.com/operational-audit-process
Grabillo, M. (2021, October 2). OPERATIONAL AUDIT: WHAT ARE ITS PHASES? Retrieved October 16, 2021 from https://markgrabillo.blogspot.com/2021/10/operational-audit-what-are-its-phases.html?m=1
Miller, R. W. (1957, August). Operations Auditing, A Study of The Newest Phase of Internal Auditing (pp. 55, 58, 66, 73, 75). [Master’s Theses]. University of Richmond, UR Scholarship Repository. Retrieved from: https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses
Murdock, H. (2017). Operational Auditing (pp. 36, 41, 54) [eBook edition]. CRC Press.
DUEÑAS, ALYSSA MAE B. (2019-102691)
WHAT IS THE SIGNIFICANCE OF APPOINTING THE RIGHT AUDIT STAFF MEMBERS?
ReplyDeletePeople are the greatest asset of a business. They are the face that clients and investors see. The work and value that they bring to the table determine the success or failure of the entity (VP Legacies, 2019). Therefore, it is crucial to pick the right man for the right job.
As claimed by Nicola Rimmer, Nancy Haig, and Karen Begelfer in their interview with the Institute of Internal Auditors (2016), auditors such as themselves experience a wide range of challenges and are often required to shift from one department to another. With this, an internal auditor must be prepared, knowledgeable, flexible, adaptive, communicative, dedicated, and curious. Morale is just as important as the above skills. It serves as a guide when things go rough, questionable, and vague (Vanourek,2014). That is why the members must uphold principles that are in line with the values and objectives of the team and the organization. Once they think similarly, they work as one, stronger than ever.
When someone who knows what he is doing is appointed, the job gets done in a proper and fast manner. This encourages dependability and trust among peers. The team can work and focus on different areas independently and collectively. The resources are not wasted, and turnover costs decrease. The expectations of the clients are attained which results in valuable experience. Hence, the outcome is a stable growth of the company (Bixby, 2017)
AT WHAT PHASE WHEN DO AUDIT TEAMS HIRE STAFF MEMBERS?
Although listed as the first stage in auditing, the selection phase is primarily concerned with the wide-risk assessment and identification of problematic spots rather than organizing and allocation of human resources.
In accordance with the Philippine Government Internal Audit Manual (PGIAM) released by the Department of Budget Management (DBM), audit teams hire staff members at the Audit Engagement Planning phase, specifically under step three (c).
This second phase (considered as the first phase in the PGIAM) involves the following steps:
(a) Understanding of the audit program and project – involves identification of internal controls and review of laws and regulations.
(b) Determination of the audit objective, scope criteria, and audit evidence – involves a preliminary collection of related documents and information, identification of the focus of the program, and determination of necessary audit types.
(c) Determination of the resources required for the audit and the target milestone/dates – involves assessment of staff capability and capacity and resources. This is when the team decides to look for candidates and employ those with potential.
(d) Development of the audit plan and audit program
(e) Determination of the Key Performance Indicators (KPIs) of the audit engagement
(f) Approval of audit plan, audit program, and KPIs
REFERENCES:
Bixby, M. (2017) Why is hiring the right person essential. Retrieved from https://www.morrisbixby.com/2017/03/17/hiring-right-person-essential/
Department of Budget Management (nd.). TWD-OGM-ICS Internal controls manual (part 2). Retrieved from http://www.tanauanwd.gov.ph/wp-content/uploads/2016/04/TWD-IC-Manual-Part-II-II.-Audit-Process.pdf
The Institute of Internal Auditors (2016). How to succeed as an internal auditor. Retrieved from https://www.youtube.com/watch?v=lJuZDvyEBHU
Vanourek, B. (2014) Developing your team's shared values. Retrieved from https://www.td.org/insights/developing-your-teams-shared-values
VP Legacies (2019) 9 Reasons why your employees are your company's most valuable asset. Retrieved from https://vplegacies.com/why-employees-are-your-companys-most-valuable-asset/
- PARAGAS, DANIELA T.
2019-104925
CBET-01-502A
(1) What is the significance of appointing the right audit staff members?
ReplyDelete“Internal auditors provide an independent and objective assessment of the effectiveness and efficiency of a company’s operations, specifically its internal control structure. The internal audit function helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.” (Association of Certified Fraud Examiners [ACFE], n.d.)
Appointing the right audit staff members is significant to give proper and relevant audit plans for the business. According to Miller (1957), “there must be a competent internal auditing staff which represents a wide range of technical abilities and practical experience.” Having technical abilities for internal auditing staff includes having risk management skills, problem-solving skills, project management skills, product knowledge, regulatory knowledge, communication skills, data analytics, and leadership skills. (Renaix, n.d.). For practical experience, an internal auditor needs a bachelor’s or master’s degree and is encouraged to obtaining the Certified Fraud Examiner (CFE), Certified Internal Auditor (CIA), and/or Certified Public Accountant (CPA).
(2) At what phase when do audit teams hire staff members?
Hiring audit staff members by the audit teams will be part of the selection phase before the planning phase. They should select competent and reliable audit staff members that will contribute their skills in creating audit plans. Audit staff must be knowledgeable of operational auditing so that their participation will result in better audit plans. The planning phase is very crucial and hiring skilled staff members is necessary before this phase in the audit process. Also, selecting them will be cost-effective because the business can expect them to do their job effectively and efficiently.
REFERENCES:
Internal Auditor. (n.d.). Association of Certified Fraud Examiners. https://www.acfe.com/career-path-internal-auditor.aspx
Internal Auditor Qualifications & Skills. (n.d.). Renaix. https://www.renaix.com/job-resources/internal-auditor-qualifications-skills-requirements/
Miller R.W. (1957). “Operations Auditing: A study of the newest phase of internal auditing”. Master’s Thesis, University of Richmond. Scholarship Richmond. https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses
-JORLIE GILLEGO (2019-100665)
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ReplyDelete1. What is the significance of appointing the right audit staff members?
Finding and maintaining outstanding personnel is crucial to the success of operations auditing. However, a qualified staff member might be difficult to find and keep. To ensure an effective and reliable audit, competent and right audit staff member is essential.
In many auditing firms, the function of the audit staff member is changing with the ever-evolving world. It is critical to seek people who can go beyond recognizing patterns and trends in data and transform that data into something concrete by providing ideas and solutions to assist the organization stay compliant and boost productivity. Audit staff member key responsibilities include: creating and finalizing audit-results-related reports, internal controls, accounting methods, and recordkeeping are all being evaluated, evaluating and optimizing operations efficiency, confirming the accuracy of a wide range of financial records, including receipts, payrolls, and tax returns, management should be involved in discussions about compliance and regulatory issues, making projections based on existing data that can be used to inform business decisions, utilizing computer programs that are used to conduct reporting, data analysis, and statistical models, supporting auditing managers' concerns and collaborating on initiatives with other members.
The purpose of operational auditing is to improve the efficiency and effectiveness of operations. With these crucial responsibilities, it is needless to say that the right staff member should be appointed. Because if not, inevitable consequences will arise in the process of auditing and an insignificant or significant error may occur in the audit reports. Insignificant errors refer to grammatical errors in audit reports but its existence does not imply a lack of comprehension on the part of the reader or user of the report while significant error such as omission or poor analysis of relevant or critical information in the audit report implies that the reader or user may have difficulty understanding the report or may lack the information required for decision-making, resulting in incorrect decisions that will lead to a huge loss to the entity. To avoid these consequences, the audit appointment committee should be wiser in choosing the right staff member.
Janine Louise S. Errua
2019-103959
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ReplyDelete2. At what phase when do audit teams hire staff members?
The hiring of audit staff members belongs to the selection phase of the operational auditing process. The selection phase is the preparatory stage of the operational auditing, and selecting the right staff members is a very important part of this phase. Hiring or appointing of staff members goes through a lot of processes and assessments. It entails selecting the prospective staff member with the best set of abilities, experience, and personality fit for the job. It includes gathering and assessing resumes and accomplishments, holding job interviews, and finally selecting and welcoming an audit staff member to begin as a part of the team.
The audit staff member will report to the audit manager, who leads the audit and compliance team. As assigned, the audit staff member conducts financial, operational, performance, compliance, and other audits or reviews. The audit staff member will also assist in the planning, fieldwork, testing, and data analysis, interviewing, and report writing under the supervision of the audit team leader. The responsibility of selecting staff members is in the hands of the team leader. The team leader must assess whether their combined skills and experience as a team will be appropriate in the auditing process and if they have enough resources such as time, equipment, and access to management and key employees to accomplish the work.
References:
Mareque, M., López-Corrales, F., & Fiestras, G. (2015, April 8). Citations: Do auditors make mistakes when they write audit reports? An empirical study applied to Spanish non-listed firms. Taylor and Francis Online. Retrieved October 17, 2021, from https://www.tandfonline.com/doi/citedby/10.1080/1331677X.2015.1028242?scroll=top&needAccess=true
Selection of audit team members. (n.d.). The Clean Energy Regulator. Retrieved October 17, 2021, from http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
University of Alabama at Birmingham. (2020, December 4). What a Staff Auditor Does and How to Become One. UAB Online Degrees. https://businessdegrees.uab.edu/blog/what-a-staff-auditor-does-and-how-to-become-one/
Janine Louise S. Errua
2019-103959
What is the significance of appointing the proper audit staff members?
ReplyDeleteThe significance of appointing the proper audit staff members is it ensures that they properly execute their job. The audit committee can expect to review significant accounting and reporting issues and recent professional and regulatory pronouncements to understand the potential impact on financial statements. Understanding how management develops internal interim financial information is necessary to assess whether reports are complete and accurate. (CFA Institute, n.d.)
As stated above, as an auditor, you must be proficient and well-trained to assess information and conduct inspections to unique areas of its employee benefit plan. They oversee the financial reporting process, audit process, and internal control of a firm. Auditors verify if the firm abides by the laws and regulations and accounting standards. Appointing proper audit staff members can eliminate misstatements in reports and give excellent recommendations that can benefit the firm. Furthermore, considering the necessary skills and expertise to execute and prepare for the audit report.
Poor performance can negatively impact a company because it can be challenging to achieve its goals. In contrast, having proper audit staff can lead to a firm’s growth, eliminate mistakes or fraud, and increase productivity, leading to an effective and efficient operational audit.
At what phase when do audit teams hire staff members?
Where significant deficiencies in skills or experience are identified and cannot be rectified through internal resourcing, the audit team may need to invite an expert from outside its organization into the team. The expert is then part of the audit team and bound by the exact requirements as the other team members under the NGER Audit Determination. (Australian Government Clean Energy Regulator, n.d.)
For some engagements with complex areas, it may be necessary for the audit team leader to bring an external expert into the audit team. To determine if an expert is required, the audit team leader could consider:
The audit team’s knowledge and experience of the matter being audited—the lower the level of expertise and experience, the higher the likelihood that the firm may require an expert in the team.
The risk of material misstatement is due to the nature, complexity, and significance of the matter being considered. The greater the risk, the higher the likelihood that the firm may require an expert in the team.
The quantity and quality of other assurance evidence are expected to be obtained—the lower the amount of evidence available, the higher the likelihood that the firm may require an expert in the team.
Internal Audit conducts a University-wide risk assessment near the end of each calendar year. We develop the audit plan for the subsequent year based on the results of this assessment and the department’s available resources. The Chancellor and the Fiscal Affairs and Audit Committee of the Kansas Board of Regents review the audit plan before execution. (The University of Kansas, n.d.)
In the Selection Phase, they find and hire auditors they think can be an asset to the company. They select those with the necessary skills and expertise for the achievement of the firm’s goal. They choose an auditor that they think can perform better and has integrity.
References
Australian Government Clean Energy Regulator. (n.d.). Selection of audit team members. http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
CFA Institute. (n.d.). Audit Committee Role and Responsibilities. https://www.cfainstitute.org/en/advocacy/issues/audit-committee-role-practices#sort=%40pubbrowsedate%20descending
The University of Kansas. (n.d.). The Audit Process. https://internalaudit.ku.edu/project-process
Madera, Dianne M.
2019-102064
CBET 01-503A
What is the significance of appointing the right audit staff members?
ReplyDeleteAudit staff members or auditors are the one who verifies the financial statements in financial auditing while in operational auditing, they check if the policies and procedures that the organization uses is still applicable to the current trends. Their main purpose is to give an objective and fair report, conclusions, as well as recommendations in order for the stakeholders to make a sound decision.
These are the cited qualities that an auditor must have: experience and professional competence; constructive thinking ability; command respect by reason of fairness; thoroughness and speed; ability to think in terms of management at all levels; avoidance of “policeman,” “ivory tower” or “superior creature” attitude; and the ability to express ideas clearly “in terms of the particular audience” (University of Richmond, 1957). Auditors must assess relevant information objectively and that they scrutinized evidenced given to them critically and independently in order for the stakeholders to have confidence.
The discipline of independence is core to an auditor’s approach and mindset. Knowing that you appoint an auditor that is credible and objective in terms of reporting, it will ensure your company’s confidence and people will less likely think that your data and information are reliable.
At what phase when do audit teams hire staff members?
Hiring audit staff members is an important part of the planning stage. In planning stage, we need to know what are the vital information that we needed, the skills and expertise of the employees, and the risks and opportunities that an organization has. This phase includes where defining the population of interest and how will testing will be performed. As per the requirements of Division 2.2 of the NGER Audit Determination, the audit team leader must ensure that the members of the audit team have between them the knowledge, skills and availability required to satisfactorily prepare for and carry out the audit and prepare the audit report.
Reference:
Murdock, H. (2017). Operational Auditing: Principles and Techniques for a Changing World. Taylor & Francis Group, LLC.
Selection-of-audit-team-members //. (n.d.). Retrieved October 17, 2021, from
http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms and resources/Audit determination handbook/Selection-of-audit-team-members.aspx
-Cancino, Jovin E. (2019-106913)
Being with the right group of person or people in every aspect of life, whether it is personal or professional, would have a significant impact on an individual or the group itself. In the field of Operational Auditing, having the right team will bring a positive outcome in many ways. Being a part of an Auditing team, and being an auditing staff will be a big responsibility. Staff audits provide an up-to-date assessment of the workforce and serve as the foundation for future benchmarking and workforce assessments. They also supply the essential database for accurate cost estimates of alternative severance and pension methods, as well as payment disbursement to workers. It is critical for you to understand the rules that apply to your work as a member of the audit committee.
ReplyDeleteA staff audit is a crucial initial step in evaluating labor issues in a company. Audits of employees can help with the following. Ensure that personnel records are up to date, Identify and fire any employees who are still on the books (if there is any), Provide a foundation for developing severance and early retirement options, as well as evaluating downsizing expenses, Fill in any significant data gaps that will be needed to compute severance payouts later, Improve the precision of future workforce analyses, Establish effective record-keeping methods to allow management to govern or recover control of payroll, to give enough human resource information to management, and to comply with labor laws and regulations. Establish a foundation for evaluating employment role, pay grades, and pay scales.
An audit committee's responsibilities in supervising financial reporting and related internal controls, risk, and ethics and compliance are discussed in this section. It also goes into the committee's responsibility in managing internal and independent auditors, as well as how it could interact with other members of management and external stakeholders. Finally, it emphasizes the committee's responsibility with regard to proxy statement disclosures. Having all that said, having a team that can follow every single one of the things said above will be vital for the company in assessing the entity. The audit committee's job is one of control and monitoring, and in carrying out this duty, the committee may rely on management, the independent auditor, and any other experts it may hire, as long as their reliance is reasonable. Management should be asked to identify and discuss any major accounting policies, estimates, or judgments made by the audit committee.
Having the right audit staff to do all those things said above would bring a much smoother flow of auditing. The audit staff will be in charged with their role so the audit committee can do his/hers. The jobs and the flow will not go all around the flow because they have their own responsibilities.
The selection of audit team members is a crucial aspect of the planning stage.
The audit team leader is completely in charge of member of the team selection. The audit team as a whole, on the other hand, must be included in determining the team's combined expertise and skills, as well as if they are qualified to carry out all the engagement.
According to Division 2.2 of the NGER Audit Determination, the audit team leader must ensure that all members of the audit team have the necessary knowledge, skills, and availability to satisfactorily prepare for and conduct the audit, as well as to compile the audit report.
Audit teams are often diverse to cover the relevant skills and knowledge, and may comprise assurance practitioners, engineers, environmental scientists, and financial, legal, or business professionals.
With all of that said, it is safe to assume that in the best time to hire staff members is at the Selection Phase. It is the very first step so we can afford small mistake unlike hiring members at the middle of the process.
Rodolfo S. Almonte IV (2019-101425)
1.What is the significance of appointing the right audit staff members?
ReplyDeleteInternal auditing is an impartial, independent assurance and consulting activity that adds value and improves the operations of a company. Because of this, it is easier for the firm to achieve its goals through a systematic approach to improve and evaluate the risk management, control and government. Selecting staff is a crucial choice for the organization, one must be responsible and credible enough for the designated position since they will not be only dealing with the people inside the firm but also externally. Since the staffs are the major reason why the organization can achieve their goals, so appointing the right staff will drastically help the company.
Effective auditor must consist of various characteristics, they should understand their field of work, they should be adequately educated, planned and supervised. Since there are many risks that the firm faces, they should be able to come up with solutions and be innovative to address the issues. Also, they should have good relationship to others since in auditing, it is important to have teamplay, also auditors make suggestion to the management to make the right decisions for the betterment of the organization. They should establish good relation with the client to achieve understanding with each other, being able to communicate with each other will reduce misinterpretation to either party. They must also show integrity, since they are objectively analyzing, influencing, and advising the organization, they might come to some arguments and disputes with the firm, but one auditor is confident in their presentation.
2.At what phase when do audit teams hire staff members?
Selecting auditing team staff is a crucial part in the preparation stage. Finding auditing team is a auditing leader’s job, however the team must be created already as a whole when examining and evaluating their team’s skills and experience if they are able to perform well in the given task. Within the team, they should have combined skills and knowledge to prepare and carry out the audit report. In order to carry out the given task, sometimes the team has multidisciplinary that consist of other different people who have background to the given task when it is far from their expertise. For some engagements with complex areas, it may be necessary for the audit team leader to bring an external expert into the audit team It is important to note that while it is at the audit team leader’s discretion to determine how the expert will be selected or hired, when the expert is brought into the audit team, they are already a full member of a team, therefore subject to the same independence, quality control and conflict of interest situation requirements as the other audit team members. Since auditing team has a vital role on the company, they should be hired at the planning stage. Because they are not only dealing internally, but also externally.
References:
1. Selection of audit team members. (n.d.). Clean Energy Regulator. Retrieved October 16, 2021, from http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
- Rochelle Anne V. Amarga (2019-106144)
1. What is the significance of appointing the right audit staff members?
ReplyDeleteAccording to Tugman & Leka, IFAC (2019) Corporate failures and scandals across countries, including the recent collapses of Carillion, Patisserie Valerie and London Capital & Finance in the UK, failings in South Africa’s state-owned entities Transnet, Eskom, and South African Airways, and the 1MDB scandal in Malaysia to name a few, have all focused political and regulatory attention on the audit profession and also exposed serious corporate governance failings. The result is increased debate globally on audit and governance regulatory reform. Companies do not fail because of poor quality audits. An audit is designed to enhance confidence in financial reporting, but it does not relieve management or those charged with governance of their responsibilities. Ultimately, corporate failures and the resulting impacts on financial statements are consequences of poor governance and decisions.
An audit committee is made of members of a company's board of directors and oversees its financial statements and reporting. Per regulation, the audit committee must include outside board members as well as those well-versed in finance or accounting in order to produce honest and accurate reports. (Audit Committee Definition 2020) The role of the audit committee is to support council in fulfilling its governance and oversight responsibilities in relation to financial reporting, internal control structure, risk management systems, internal and external audit functions and ethical accountability. (The appointment, function and responsibilities of audit committees 2021) Especially, the internal audit staff acquire essential background knowledge and begin contact with the client during the planning phase of each project. Therefore, the Board of Directors must be keen in appointing the right audit staff members because each of their performances when being combined, can affect the flow of operation in internal auditing helping the organization achieve its overall purpose.
2. At what phase when do audit teams hire staff members?
The audit team leader must assess whether the team has enough supporting resources to accomplish the engagement, such as time, equipment, and access to management and key individuals.
Hence selecting audit team members is an important part of the preparation stage. The overall responsibility for the selection of team members rests with the audit team leader. However, the audit team as a whole should be part of the process of evaluating the combined skills and experience of the team and whether they are appropriate to perform the engagement. (Selection of audit team members 2021) The appointing of staff members happens on the planning stage. During the planning phase of each project, the Internal Audit staff gather relevant background information and initiate contact with the client. (The Audit Process | Internal Audit 2013)
References:
Tugman, L., & Leka, L. (2019, September 9). 5 Key Factors To Enhance Audit Committee Effectiveness | IFAC. IFAC. https://www.ifac.org/knowledge-gateway/supporting-international-standards/discussion/5-key-factors-enhance-audit-committee-effectiveness.
The Audit Process | Internal Audit. (2013, November 5). Internal Audit. https://internalaudit.ku.edu/project-process.
Selection Of Audit Team Members. (n.d.). Selection of audit team members. http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx.
Audit Committee Definition. (2020, October 28). Investopedia. https://www.investopedia.com/terms/a/audit-committee.asp#:~:text=An%20audit%20committee%20is%20made,produce%20honest%20and%20accurate%20reports..
The Appointment, Function And Responsibilities Of Audit Committees. (2021, August 26). DLGSC. https://www.dlgsc.wa.gov.au/department/publications/publication/the-appointment-function-and-responsibilities-of-audit-committees.
- LUIB, BEVERLY JANE B. 2019-105706
SABANGAN, REMELYN CBET 01-503A 2019-101964
ReplyDelete1. What is the significance of appointing the right audit staff members?
As the business world has become more global and interconnected, the speed of development has certainly accelerated. New firms are starting to develop while existing companies are devising new ways to expand and extend their influence beyond their boundaries. As a result of this, the demand for competitive workforce rapidly increased. Firms have to leverage the expertise and understanding gained from a diversified staff to make it much easier to compete. While technology can certainly make jobs easier and more efficient, it cannot replace the unique skills of human intellect, judgment, and leadership.
According to The Institute of Internal Auditors, internal audit’s function is to provide independent assurance that an organization’s risk management, governance, and internal control processes are operating efficiently. Internal auditors also serve as the “eyes and ears” of management, according to Miller (1957), by assessing operations from a management perspective. Internal auditors, as we all know, have a challenging task ahead of them, from analyzing inherent and operational risks to producing a high-quality comprehensive audit that is critical for determining the best course of action. For this reason, internal auditors must adopt a more disciplined approach in order to properly demonstrate their tasks and responsibilities to the fullest extent possible. They would then be able to provide their clients with a pleasing work output as well as a professional audit service. With that being said, it is indeed critical that we give great consideration to the appointment of audit staff members, as they have a very important role in the company’s success.
As per the requirements of Division 2.2 of the NGER Audit Determination, the audit team leader must ensure that the members of the audit team have between them the knowledge, skills and availability required to satisfactorily prepare for and carry out the audit and prepare the audit report. When it comes to selecting the appropriate audit staff member, the leader or manager with overall responsibility should conduct a comprehensive assessment of the candidates. He must guarantee that the proper person is assigned to the suitable job position. Firstly, he must assess the candidates’ professional experience and competence. One that is independent enough to be reliable and efficient. He should be an effective member who can offer accurate and reliable financial reports and devise pragmatic and appropriate solutions, with analytical thinking and professional skepticism. Second, the auditor should have outstanding communication skills. I believe it is critical for an operational auditor to be able to effectively communicate his consistently accurate, relevant, and timely insights, as well as to confidently incorporate intelligent recommendations. Overall, the audit team should be comprised of individuals who are competently knowledgeable and highly skilled. A high-quality operational audit report is secured by the collaborative efforts of each member, which will have a significant impact on the business’s economic decisions.
ReplyDelete2.At what phase when do audit teams hire staff members?
According to Clean Energy Regulator (n.d.), selecting audit team members is an important part of the preparation stage. I suppose that this would fall under the pre-planning phase or the planning phase itself when we are appointing team members in the audit department. Aside from defining the goals, scope, and objectives, the planning phase also entails predicting the amount of time tasks will take to complete. Because the scopes of the audit work may be fully determined during this phase, the audit team will have a better sense of the number of audit professionals required and the requisite specialist abilities, which will be tremendously helpful when fieldwork begins. Therefore, it’s critical that we consider the process, workers, systems, or auditors have changed. Time estimates would have to be updated if there were changes, but unless there are, auditors reperforming a previous audit should expect to act with more expertise and speed with each subsequent review. Indeed, employing qualified audit professionals is a crucial step toward a successful operational auditing department comprehensive audit. Their functions are indeed vital that if they are unable to carry them out, firms will be inefficient and ineffective in responding to problems and concerns in their operations. As a result, they will be unable to implement appropriate new policies that are both cost-effective and efficient. Overall, the success of an organization is determined by the effective implementation of governance mechanisms and structures, visioning and seamless execution, effective risk identification, hiring and deploying the best people possible, and exceeding the expectations of a diverse and demanding set of stakeholders.
REFERENCES:
Clean Energy Regulator. (n.d.). Selection of audit team members. Australian Government. Accessed October 15, 2021 http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.asp
Miller, R.W. (1957). Operations Auditing, A study of the Newest Phase of Internal Auditing (Master’s Thesis, University of Richmond). UR Scholarship Repository. http://scholarship.richmond.edu/masters-theses
Murdock, H. (2017). Operational auditing: Principles and techniques for a changing world. CRC Press.
SABANGAN, REMELYN CBET 01-503A 2019-101964
(1/2)
ReplyDelete(1) What is the significance of appointing the right audit staff members?
Every organization has different available positions that need to fill out for the operations will operate accordingly. And those different positions are also requiring different roles and skills. Just on the Auditing Department, there are specific works or roles that need to perform by each person. However, the management should not just hire anyone for the specific position. Because each role is requiring specific skills and certain qualifications to be performed properly, especially in the field of auditing that every work should be perfect.
At the very beginning of hiring the audit staff, the management should be already strict on accepting auditors to make sure that those auditors are right to be part of the team. Because remember that operational auditing is maintaining the concept of independence, objectivity, and assurance (IIA,n.d.). Every audit staff member should be able to perform and accomplished all the work assigned to them. Because if not, the errors will be committed and the auditing process will be lost its purpose.
If the management will appoint the wrong audit staff members, there will be a big chance that independence and objectivity will be disregarded. Since the possibility is that, the staff members are working on their personal interest or with the order of a third party to create anomalies in the auditing process. And if it will happen, the assurance to the clients will also be lost because the result of the audit report will be reliable anymore. This kind of scenario is one of the consequences if the internal auditors or management did not appoint the right audit staff members.
There are some factors that can be considered to choose the right auditors to be audit staff members in the team. First is the Reputation of the auditor in the industry, the management should conduct a thorough study on the strengths and weaknesses of the auditor as well as the background information for the management will be confident in appointing the auditor. Relationship with the auditor, is it best that the auditor has a good relationship with the management to have harmonized kind of work. Quality Assurance, it is important that the auditor service quality is observed by following auditing standards and reporting best practices. In conclusion, appointing the right audit staff members is significant because their performance will establish the quality and credibility of the audit report. As well as if there is assurance on the independence and objectivity towards the auditors both on the perspective of senior management and the clients (Factors to Consider While Choosing an Auditor for Your Business - CDA, 2020).
(2/2)
ReplyDelete(2) At what phase when do audit teams hire staff members?
The auditing process is consisting of five phases and they are selection, planning, execution, reporting, and follow-up phase. The start of the auditing process is the selection phase, also it will be the beginning of the work of the internal auditors. Clients and the management are very critical in determining if the auditing team has sufficient staff members. Because having a sufficient workforce can assure that the team can accomplish the work assigned to them within a certain period.
Selecting audit staff members is included in the selection phase as it is also the preparation stage of the auditing process. Thus, before performing the actions like conducting risk assessment, the audit team leader should hire and appoint their members first. Aside from that, after the selection phase, the next phase is planning where the audit plan will be communicated to the key staff members. Therefore, hiring and appointing audit staff members should have happened before planning which is the selection phase.
References:
Institute of Internal Auditors. (n.d.). The Institute of Internal Auditors. Internal Auditing: Assurance, Insight, and Objectivity, 1–12.
Factors to Consider While Choosing an Auditor for Your Business - CDA. (2020, June 17). CDA Accounting & Bookkeeping Services LLC. Retrieved October 12, 2021, from https://www.cdaaudit.com/blog/factors-to-consider-while-choosing-auditor-for-your-business
Miller, Russell William, “Operations auditing, a study of the newest phase of internal auditing” (1957). Master’s Thesis. Paper 792.
Neri, Loneil Bert L.
2019-105281
(1) What is the significance of appointing the right audit staff members?
ReplyDeleteAccording to Canada Assurance Standards the significance of appointing right staff members to be satisfied that those persons who are to perform the engagement collectively have the appropriate competence and capabilities to perform the engagement in accordance with relevant standards and applicable legal and regulatory requirements and enable an assurance report that is appropriate in the circumstances to be issued. The engagement leader is responsible for the engagement and its performance, and for the assurance engagement report that is issued.
The composition of the engagement team and the proper assignment of roles and responsibilities are essential to the performance of an effective audit. Every audit is different, and the engagement team is structured to meet those specific circumstances. The engagement leader assigns roles and responsibilities that provide for development of each team member, supported by an integrated coaching culture, by providing team members with a range of challenging opportunities to build their knowledge, relationships, and experience. By engaging team members in setting expectations and measurable goals aligned to the audit, Office, and personal success. By leading by example and sharing knowledge and experience and providing for high-quality on-the-job coaching. This means that auditors Should develop their technical competence, team-working skills, knowledge-sharing abilities, and professionalism, perform high-quality engagements and manage risk appropriately.
(2) At what phase when do audit teams hire staff members?
Audit teams hire staff members at first phase of audit which is selection. Selecting audit team members is an important part of the selection phase. The overall responsibility for the selection of team members rests with the audit team leader. However, the audit team as a whole should be part of the process of evaluating the combined skills and experience of the team and whether they are appropriate to perform the engagement. As per the requirements of Division 2.2 of the NGER Audit Determination, the audit team leader must ensure that the members of the audit team have between them the knowledge, skills and availability required to satisfactorily prepare for and carry out the audit and prepare the audit report.
In order to cover the necessary skills and expertise, audit teams are typically multidisciplinary and may include assurance practitioners, engineers, environmental scientists and financial, legal or corporate experts.
Where significant deficiencies in skills or experience are identified, and cannot be rectified through internal resourcing, the audit team may need to invite an expert from outside its organization into the team. The expert is then part of the audit team and bound by the same requirements as the other audit team members under the NGER Audit Determination.
The audit team leader will need to consider whether the team has sufficient supporting resources—such as time, equipment and access to management and key personnel—to complete the engagement.
References:
Australian Government Clean Energy Regulator. (n.d.). Selection of audit team members. http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
Miller, W. (1957, August). Operations auditing, a study of the newest phase of internal auditing. https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses
Office of the Auditor General of Canada. (2018, April). 3061 Engagement team: assigning and managing tasks. https://www.oag-bvg.gc.ca/internet/methodology/performance-audit/manual/3061.shtm
CORTEZANO, ELEONORA LAURA A.
2019-103875
CBET-01-502A
According to Thompson (2008), A team is defined as an interdependent set of people that is part of another larger respect to information, resources, knowledge and skills and who seek to combine their efforts to achieve a common goal. Appointing the right audit staff members is also like choosing your allies in life, you need to work together with only one certain goal. Therefore, understanding and open communication between one another is highly preferred. In order for the management to achieve the desired end point, the need to consider competent and competitive members is truly a must. Additionally, other significance of having the precise audit staff members is that it will allow the management to grow and be as efficient as possible in facing every circumstances that will arise in the future. Meanwhile, as I constantly talk about the essence of having or appointing the right audit staff members, let us know what are the qualities that this management is considering to be called the “right” ones. The people who are fit enough to the said job must have the knowledge, skills and availability required to satisfactorily prepare for and carry out the audit and prepare the audit report. It may be simple as it seem, however, it is not so usual to find someone that is already knowledgeable and skilled at the same time. As to my opinion, if I were the one to choose the audit staff members I will consider the two above in addition to their passion and commitment.
ReplyDeleteAfter knowing what and who to consider in appointing the right audit staff members, I believe that hiring people or employees must come first before any planning, execution, and reporting. Without the staff members, it is not possible to create or start any kind of work. Therefore, I consider the selection phase as to where the audit teams hire staff members. Also from the word itself that it tends to select. Selecting not just the risk involve, the plan to execute, or the resources to use. Again, before assessing the risk and creating a plan, one important thing to do is to have your people to share and exchange information with.
References:
Miller R.W. (1957). “Operations Auditing: A study of the newest phase of internal auditing” [Master’s Thesis, University of Richmond]. Scholarship Richmond. https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses
Grabillo, M. A. (2021). Operational Audit: What are its Phases?
https://markgrabillo.blogspot.com/2021/10/operational-audit-what-are-its-phases.html
Ajy B. Palamo (2019-106334) CBET-01-503A
1.What is the significance of appointing the right audit staff members?
ReplyDeleteAppointing right audit staff members is a process of assigning and giving a responsibility and authority to someone else for them to complete the task at hand but you retain the overall responsibility for its success. Appointing is very important to any organization as it empowers employees or team members. It is vital that assigning authority and duty among individuals within an organization.Without this, it will be difficult to establish a formal organization. So therefore, the significance of appointing the right staff members in an organization is it becomes the main factor when it comes to the growth and success of the business. Appointing the right audit staff is not all about finding someone to fill the position immediately but it needs to meet the required standard that will be able to dedicate time, knowledge and resources towards filling positions. Appointing a right staff person must be knowledgeable and committed towards his work because if you assign a wrong person in a job that is unfitted then possibly It would cost a big time by an organization especially if the operational auditing report plays a vital role to an organization. It not just creates unnecessary cost but it can drive organization to a wrong decision making and it can create a discrepancy in audit reports. That's why appointing a right audit staff member must be competent, knowledgeable and effectively providing quality audit reports.
According to Deloitte and Zewman (2015) As soon as we had shed team members who weren't the right fit for their roles, and hired people whose values and goals aligned with ours, because an audit member, it is important to understand the rules relevant to your role. This section provides an overview of an audit committee’s responsibilities in overseeing financial reporting and related internal controls, risk, and ethics and compliance. It also discusses the committee’s role in overseeing the internal and independent auditors, as well as how thecommittee may interact with other members of management and external stakeholders.
Finally, it highlights the committee’s responsibilities with respect to disclosures in the proxy statement.
Eugene S. Mallari
CBET 01-503A
2019-102848
2. At what phase when do audit teams hire staff members?
ReplyDeleteHiring audit staff members plays a vital role in organization and audit reportings. They commonly give an up-to-date analysis regarding the work force and produce information in basis for subsequent benchmarking and workforce analysis. Other than that,they also provide accurate and necessary database that will be used for estimation of the costs of alternative severance and pensions strategies, and for the eventual disbursement of payments to workers.
Audit teams hiring staff members are in the phase of planning. With regards with this, planning phase audit activities are selected using a risk based approach. They do selection in planning because Selecting audit team members in the preparation stage is important. The objective of this phase is to enable the auditors to adopt and widen their understanding regarding the unit or process, in order to develop a concrete audit plan and scope for the review. During this planning phase, the Operational Auditor will conduct operational observations and interviews. To furtherly know the candidates to the position of staff audit members. If the audit team leader has an intention to hire an expert into the audit team, they will do an evaluation of professional competence and objectivity of expertise to the said candidates and they should obtain sufficient, appropriate evidence that the assurance procedures the expert will perform are appropriate and address the assurance risks identified. To sum it up, the responsibility and duty for the selection is at the hands of the audit team leader or an operational audit. However, the audit team as a whole should be part of the process of evaluating and hiring they would criticize the combined skills and experience of the team and whether they are appropriate to perform the engagement.
Reference:
Clean Energy Regulator. (n.d.). Selection of audit team members. Australian Government. Accessed October 15, 2021 http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.asp
Labor Kit TooL (n.d) Retrieved October 17, 2021 https://ppiaf.org/sites/ppiaf.org/files/documents/toolkits/LaborToolkit/Toolkit/module3/staff_audits.html
New to HR (n.d) Retrieved: October 17, 2021 https://www.google.com/amp/s/newtohr.com/importance-hiring-right-people/amp/
Inc (2018) Retrieved October 17. 2021 https://www.inc.com/entrepreneurs-organization/the-value-of-having-the-right-person-for-the-right-job.html
Eugene S. Mallari
CBET 01-503A
2019-102848
According to Miller (1957), appointing the right audit staff members shall consider its characteristics and competence, this includes the brief resume of qualities such as experience and professional competence; constructive thinking ability; command respect by reason of fairness; thoroughness and speed; ability to think in terms of management at all levels; avoidance of “policeman,” “ivory tower” or “super creatures” attitude; and the ability to express idea clearly “ in terms of the particular audience”. Having all of the mentioned characteristics is crucial for an auditor itself so it must be considered before appointing an audit staff member, possessing those is significant because this will make the auditor not just reliable as a staff member and professional in his job. Skills and expertise are also important when choosing an audit staff member (Clean Energy Regulator, n.d.) because they are not just going to an employee in the business, they have the very essential role for keeping all operations intact and flowing smoothly internally and externally.
ReplyDeleteAs I have searched and learned before, there are 5 phases of auditing: Selection, Planning, Execution, Reporting, and a Follow-up (Wandering CPA, 2021). I think hiring a staff member will land on Selection phase because based on my own understanding, it is important to thoroughly screen every person that will have the audit staff position and with that said, they’ll need to go through the selection process. And if I will base it on the phase for the cycle of the auditing, I think they do hire an audit staff in Selection phase as well because in this phase a business will need more staff to conduct audit so that they will be able to move forward to the next phase. A business will need to have staff so that a progress will start in auditing.
In conclusion, choosing the right audit staff is crucial as much as the role of an auditor in the business. It must be thoroughly screened to have the perfect audit staff for the certain job that they’ll be assigned to. It takes skills, competence and professionalism to be part of the auditing team because their role in the business will be the basis if it will grow or not.
References:
Clean Energy Regulator. (n.d.) Selection of Audit Team Members. Selection of audit team members (cleanenergyregulator.gov.au)
Miller. (1957, August). Operations auditing, a study of the newest phase of internal auditing [Master's Theses, University of Richmond]. University of Richmond Scholarship Repository. https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses
Wandering CPA (2021 October 2). OPERATIONAL AUDIT: WHAT ARE ITS PHASES?
https://markgrabillo.blogspot.com/2021/10/operational-audit-what-are-its-phases.html
ROTONI, JOHANNA MARIE V.
CBET01-502A
2019-103691
Villegas, Mharlouie B.
ReplyDeleteCBET-01-503A
2019-105793
OPERATIONS AUDIT
WRITTEN ASSIGNMENT WEEK 2
OBJECTIVES AND PHASES OF OPERATIONAL AUDITS
(1) What is the significance of appointing the right audit staff members?
Those individual people who serve on a company's board of directors have a significant impact on the company's tone, thus choosing the correct audit staff members is critical. The right audit staff members are in charge of ensuring that a company acts ethically and follows all laws and regulations. The financial reporting methods, internal controls, and independent auditors are all under the scrutiny of audit committees. The yearly audit serves as a check on the financial reporting methods of the organization. The audit committee also functions as a forum for open and objective financial discussion.
In terms of assigning, there are appropriate audit staff members guarantees that the organization's financial statements are clear and trustworthy. Those people who are assign is that they ensure that the company has a comprehensive risk management approach and suitable internal controls in place. Audit staff employees can cause conflicts of interest and fraud, which is why selecting the right individual for the job is so crucial in auditing.
Now let’s talk about appointing the appropriate staff member to there right position. Selecting the right audit staff members is crucial because they supervise financial reporting and accounting and maintain track of accounting standards and principles. Appointing the right audit team is critical since they conduct audits and reviews, which include identifying risks, evaluating internal control design and effectiveness, designing and managing audit programs, work plans, and resource budgets, as well as fieldwork, testing, and data analysis. Prepare work papers and reports in accordance with audit plan procedures, ensuring a high level of technical accuracy, grammatical accuracy, and structure, as well as adhering to IAC protocols and professional auditing standards.
(2) At what phase when do audit teams hire staff members?
ReplyDeleteStaff members are hired during the planning stages. Before the audit begins, it is necessary to have a team of leaders who are qualified and knowledgeable to carry out the important duties of auditing. You must plan what qualifications you will need for your audit throughout the planning process in order to have this audit team. One of your most valuable assets is your workforce. In terms of hiring staff members this occurs during the planning stages because it is critical to understand the quantity and types of personnel your firm requires to achieve its objectives before beginning the audit process. For every organization, specific goals must be met and created. All of the goals are met through the recruitment and use of various people's resources in various domains of employment. Every organization's most significant feature is manpower, which plays a critical part in completing tasks to achieve innumerable goals and carrying out diverse responsibilities while giving their all to the firm. This necessitates the recruitment of highly qualified and committed people who are best suited for each role listed in an organization.
It is vital for the success of any firm to hire the right individuals. As a result, the recruiting process must be exact in order to assure the success and performance of the staff chosen, because productivity is based on the experience and qualifications of persons in predicting work performance. Personnel selection is a vital component of an organization's growth, viability, and survival, and I believe that recruiting staff members begins throughout the planning stages.
Reference: APA FORMAT
AU 310 Appointment of the Independent Auditor. (n.d.). Default. https://pcaobus.org/oversight/standards/archived-standards/details/AU310
Nestor-Harper, M. (2016, October 26). Audit Approach for Staffing Employees. Small Business - Chron.Com. https://smallbusiness.chron.com/audit-approach-staffing-employees-17423.html
S. (2021, July 13). Conducting Human Resource Audits. SHRM. https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/humanresourceaudits.aspx
1. What is the significance of appointing the right audit staff members?
ReplyDeleteAccording to WA government, the audit committee's mission is to assist the council in carrying out its governance and oversight obligations in financial reporting, internal control structure, risk management systems, internal and external audit activities, and ethical accountability. The importance of appointing the right audit staff members.
Auditors are tasked to ensure that the company they currently working on will follow all the specific procedures and guidelines. Having the right staff will make the company feel secured. The audit committee will make sure that all the proper procedures are being followed, which makes their number to have an unbiased judgment.
A qualified expert engaged by a company to offer independent and impartial evaluations of financial and operational business operations, including corporate governance is the main purpose of staff members. The audit teams need to examine every financial record properly and they should avoid outside judgments. The internal control and the overall flow of the company need to be maintained and for that, you need the best people to work with.
Now, the importance of choosing the eligible staff for audit is you are trusting your employee to be the best that they can be. To also ensure that in every task that they do they will provide their own discipline and integrity.
2. At what phase when do audit teams hire staff members?
The right phase that the audit team in a need to hire a staff member should start with the planning phase. I believe that the planning phase is very crucial for a reason that it is the foundation of every project. The planning phase should also be the selection of staff members’ phase. This phase will test the current structure of the organization.
The general role regarding the choice of best audit staff rests on how they will do the job properly. Nonetheless, the audit staff general ought to be essential for the most common way of assessing the company`s activities and experience of the group and regardless of whether they are suitable to play out the commitment. They are responsible for keeping track of the company`s financial performance and whether what is the other risk that they may face. The job will be easier to do if you will choose the best team right from the start. The planning phase will help the business to identify its goals. It is also important to plan everything ahead of time.
- HALINA, DANICA C. (2019-103671)
CBET-01-503A
References:
The appointment, function and responsibilities of audit committees retrieved from
https://www.dlgsc.wa.gov.au/department/publications/publication/the-appointment-function-and-responsibilities-of-audit-committees
Selection of audit team members retrieved from http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
Internal auditing evaluates a company’s internal control, which includes corporate governance, as well as accounting processes. Internal auditor staff is expected to support the management in managing its governance and oversight responsibilities in relation to financial reporting, internal control structure, risk management systems, internal and external audit functions and ethical accountability. The auditor then shall independently and without bias, examine the management reports.
ReplyDeleteWith those roles and responsibilities shouldered by an internal auditor, why is it important to appoint the right auditing staff? Let’s discuss first, in what phase audit teams hire staff members, in my opinion, it is in selecting phase, as it is a part of preparation stage before the planning stage.
Through hiring audit staff, especially those with expertise will make the team well balanced, thus, can make the audit reports more credible and reliable for the top management to use. It will also strengthen workforce as the works are divided, but reports can still be faithfully represented if reviewing each other’s works. As the scope of auditing as time goes by gets wider, it is only right to appoint audit staffs, so the pressure will lessen and keep the integrity of each report. If the auditing hired the right auditing staff they may also avoid any disputes with regards to law. An audit staff is also essential in assessing the labor issues of a company as well as keeping an up-to-date record of active workers to avoid and immediately eliminate recorded ghost workers that still on the payroll, and improve accuracy of subsequent work force analysis. Additionally, the other key responsibilities of an audit staff are: (1) obviously, to handle auditing and financial statements; (2) thorough knowledge regarding the firm’s environment; (3) applying current auditing principles and accounting procedures under the supervision of a senior in performing various auditing procedures; (4) interacting with clients and internal employees to increase the efficiency of the team; (5) audit reports should be in compliance with the company’s rules and regulations and so an auditor should know the company’s procedures, rules, and regulations; (6) Lastly, maintaining the confidentiality of the financial matters of the company. Above, is the list of key roles and responsibilities an audit staff must be well acquainted with, and also the reason why it is important to hire or appoint the right audit staff – the job’s responsibilities is very crucial to the company’s survival in the ever-changing business/corporate world.
Audit staffs plays an important role in identifying, prioritizing and measuring the risks involved in an organization. They also have additional duties to perform, such as making sure that the use of various information technologies is at maximum to complete the assigned work conveniently, and efficiently; keep updated on audit issues; and detect and prevent fraud, which is in my opinion, not easy to do, especially if the one who did the fraudulent act is one of your colleague in audit team.
In conclusion, I believe that it is only right for the company to have high standards for audit staff, as the life of the business is basically on the hands of the auditors, both internal, and external. The auditor’s reports and recommendations will be the one that the management will rely on in making decision, and so it must be relevant and useful to help the decision maker to arrive at the right or safest judgement for the company’s operation.
Best Sample Resume. Audit Staff Responsibility. https://www.bestsampleresume.com/job-descriptions/audit/audit-staff.html
PPIAF. Labor Tool Kit. https://ppiaf.org/sites/ppiaf.org/files/documents/toolkits/LaborToolkit/Toolkit/module3/staff_audits.html
Tuovila, A. (2021). Investopedia. https://www.investopedia.com/terms/i/internalaudit.asp
- DE LOS SANTOS, FEBVIE ROSE C.
2019-103240
CBET-01-501A
Joseph Ian C. Yap
ReplyDelete2019-16172
CBET-01-503A
Written Assignment 2
An auditor staff is a financial professional who works within their own company to ensure that financial standards are recognized proper financial records are secured. They are in charge of performing risk analysis to forecast the potential economic consequences of various choices and decisions to assist the company in making prudent and financially wise decisions. Auditor staffs are in charge of inspecting all departments within a company and performing cost analyses to ensure that financial resources are complete wisely, to minimize waste, all of the employees following to financial and business laws and protocols. If a company is mismanaging its funds in some way, either accidentally or on purpose, it is the auditor's responsibility to catch the mismanagement.
Appointing the right audit staff is significant because it maximizes the productivity of the work. It saves time and cost for the business or the company. The job will become smooth working with the right people because they know how to do their jobs and communications are effective. It will lead to better results for the project. Capable audit staff is crucial because they are responsible for examining, observing, and evaluating the departments. All the pieces of information gathered are significant. The auditors will base on that to give a well-informed decision to the company.
The quality needed for auditor staff is the following:
• experienced
• professional competence
• constructive thinking ability
• command respect because of fairness; thoroughness, and speed
• ability to think in terms of management at all levels; avoidance of policeman, ivory tower, or superior creature
• attitude
• ability to express ideas clearly "in terms of the particular audience."
Auditor staff may work as part of a team with other finance-related employees such as accountants and budget analysts, and some may manage employees depending on their position. Auditors typically report to members of upper management to share their findings on risk management and cost analysis, and they may advise managers on financial decisions and how to run areas of the company more cost-effectively.
Audit teams hire staff members at least before the project start or before the planning phase. It will save time and cost because new staff members will be informed and trained by the employers. It maximizes the productivity of the work of newly hired staff members.
References
R. Miller (1957). Operations Auditing a Study of the Newest Phase of Internal Auditing. Retrieved October 15, 2021. From: https://scholarship.richmond.edu/cgi/viewcontent.cgi?article=1789&context=masters-theses
Unknown (2021). Staff Auditor: Salary and Job Description. Retrieved October 15, 2021. From: https://study.com/articles/staff_auditor_salary_job_description.html
Significance of Appointing the Right Audit Staff Members
ReplyDeleteEffective operational auditing influences the level of a company's internal control systems, policies, and operational procedures. During the operational auditing phases, there should be communication between the auditor, administration, and employees involved in the audit's scope of work. How does appointing the right audit staff members affects the company as a whole?
According to the CFA Institute, the audit committee is in charge of the appointment, compensation, and oversight of the auditor's work. Effective audit committees are a critical part of delivering trust and confidence in reporting and risk management. As such, CPAs report directly to the audit committee rather than management. The auditor wether internal or external meets with the management team during the preliminary stage to document relevant information and it is when the planning stage takes place. Pre-audits are essential to setting the stage for operational audits. During the preliminary stage, the auditor, whether internal or external, meets with the management team to document relevant information, and this is when the planning stage begins. Pre-audits are critical for preparing for operational audits because it is also the time when the auditor has given a chance to understand the company’s concerns, challenges and current performance. In addition, transparency can help the auditor develop a thorough audit plan. He must also ensure that financial standards are met and proper financial records are maintained. Thus, to properly carry out his responsibilities, the auditor requires objectivity and independence which comes from the management’s acceptance and support.
To summarize, hiring effective auditors will increase the management’s confidence in their capabilities and audit results. Since they are experts on their field, having the right audit staff will reduce the use of resources and time while also enabling for fast and reliable performance. Practically, it will also cost lesser amount of money because they already have a lot of knowledge and experience to spend as much money on training. However, improvements and failures in general does not only depends on the auditor’s actions but the company’s governance. (Tugman & Leka, 2019) argued that an audit is designed to enhance confidence in financial reporting, but it does not relieve management or those charged with governance of their responsibilities.
References:
CFA Institute. (2021). Audit Committee Role & Responsibilities. Retrieved October 17, 2021, from www.cfainstitute.org:https://www.cfainstitute.org/en/advocacy/issues/audit-committee-role-practices#sort=%40pubbrowsedate%20descending
Miller, R. W. (1957). Operations Auditing, a Study of the Newest Phase of Internal Auditing. University of Richmond UR Scholarship Repository, 9-12. Retrieved October 17, 2021
Tugman, L., & Leka, L. (2019, September 20). 5 Key Factors to Enhance Audit Committee Effectiveness. Retrieved October 17, 2021, from International Federation of Accountants: https://www.ifac.org/knowledge-gateway/supporting-international-standards/discussion/5-key-factors-enhance-audit-committee-effectiveness
-PALACIO, DARLENE L. (2019-103509)
CBET 01-503A
1. What is the significance of appointing the right audit staff members?
ReplyDeleteAn organization can succeed with the help of the staff members thus, appointing the right employee is necessary. Aside from having all the standard quality, it is also important to know the capabilities of a person. According to the context given, it is important to have the ability to talk with your colleagues to know their strength and weaknesses so communication is essential. To know if you have an effective operational auditing, you must recognize that “management is getting done through people” which means cooperation of the team is necessary to have some place in improvement and not stuck on the past mistakes. Since an auditing staff plays a big role in recommendations and suggestions of top management and local management responsibilities in relation to financial reporting, internal control structure, risk management systems, legislative compliance, ethical accountability and the internal and external audit functions. They are examining the information thoroughly and then provide deliberations independently away from their personal interest and issues. The nature and abilities of the right appointed staff members will help determined the internal control and the auditor must see the operation as a whole with the objective of seeking reasonable system of control in the organization. It states that a standard can be easily defined and contained but it will always depend on the skills, intelligence and experience of an auditor, that’s what matter the most to have an effective and efficient team.
Hence, operational auditing is being performed by competent and creative people who are doing their best to make the organization better which why appointing the right and reasonable staff members is necessary in operational auditing.
2. At what phase when do audit teams hire staff members?
According to the context, some actual audits have been gleaned for highlights which illustrate some applications of internal auditing's newest phase. It is a phase which puts less emphasis on the analysis of records and techniques as personal observation of work and interview with employees. It states the importance if the interview questions will function to develop the applicant’s qualities. I agree that hiring staff members should have a thoroughly process, the management must know if the interviews are conducted at a reasonable time and does it engage good relationship with the public. It starts with the head management discussion along with the supervisors who seeks new members and then they personally observe the conducted interviews to have a clearer picture of the management policies and standards. The time and cost of the process is also important to consider as well as the inspection of the physical environment of the hiring process such as maximizing the space, proper facilities for applicants and pleasant interview booths. Having an appropriate place to have an interview is important for the image of the management and of course, for the applicant itself to gain or boost his confidence and to have well organized thoughts. It is important to know that an internal auditor must have not participated in any employment procedures so that, they can have an independent judgement and unbiased opinions which some normal personnel might not possessed.
Therefore, hiring new staff members is in the preparation stage. The audit team as a whole should be part of the process of evaluating the combined skills and experience of the team and whether they are appropriate to perform the engagement. The audit team leader will need to consider whether the team has sufficient supporting resources such as time, equipment and access to management and key personnel to complete the engagement.
Reference:
Miller, R.W. (1957, August). Operations Auditing a Study of the Newest Phase of Internal Auditing.
Selection of audit team members. Retrieved October 17, 2021 from:
http://www.cleanenergyregulator.gov.au
1/2
ReplyDelete1. What is the significance of appointing the right audit staff members?
Operational auditing examines the processes, systems, and procedures of an organization (Qvalon, 2021). It focuses on possible improvements for the business processes, and it dives deeper into the management practices to find the loopholes that the current system has. The goal of operational auditing is to improve the operations of the organization. To carry out this objective it is important to have the right staff who can contribute to the auditing team.
The audit department has a valuable function to the organization. As they are the eyes and ears of the management, they carry a heavy responsibility of enhancing the performance of the business. By having this great responsibility, an audit team that consists of staff who are competent enough to carry out their responsibilities in their assigned work is essential. The entire audit team must have a wide range of knowledge and technical abilities, practical experiences, and professional expertise to produce more accurate findings. Furthermore, having the right auditing staff increases the work efficiency of the whole auditing team. Because the audit staffs share the same amount of enthusiasm, same values, same goals, and same objectives, there will be great cooperation within the auditing team. Also, the whole auditing team will be able to work and blend, and differences that may affect the result and findings of the audit conducted will be avoidable.
In the classic book Good to Great, Jim Collins says, "...to build a successful organization and team you must get the right people on the bus." I agree with this because wrong staffing will do more harm rather than good. As auditors can dictate the success of the business, it is important to critically select the people who will be part of this success. The right staff will ensure that the audit department will function and operate as expected with excellence, reliability, accuracy, and independence. Using internal audits to their full potential will increase employee involvement, job satisfaction, and chances for continuous development. And only a well-structured and skilled internal audit staff can accomplish this.
Gesta, Charlotte G. (2019-100594)
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ReplyDelete2. At what phase when do audit teams hire staff members?
Various aspects determine the success of a management system and the preservation of compliance in a corporation, and one of them is having an internal audit team (Schroeder, 2018). An audit team is consists of an audit leader and the audit staff. As we have discussed the phases of auditing in this chapter, it is evident that hiring audit staff members fall under the planning phase, particularly in the selection phase. During the planning phase of the audit, audit plans are created, and other matters needed during the auditing process are prepared. Before conducting the audit, there must be knowledgeable, skilled, and excellent auditors that will carry out the work required in auditing. Usually, the responsibility of selecting audit team members rests with the audit team leader. The audit team leader must ensure that the members of the audit team have between them the knowledge, skills, and availability required to satisfactorily prepare for and carry out the audit and prepare the audit report (Clean Energy Regulator, n.d.).
References:
Clean Energy Regulator. (n.d.). Selection of audit team members. Retrieved, October 16, 2021 from http://www.cleanenergyregulator.gov.au/Infohub/Audits/Pages/Forms%20and%20resources/Audit%20determination%20handbook/Selection-of-audit-team-members.aspx
Miller, R.W. (1957). Operations Auditing, A Study of the Newest Phase of Internal Auditing [Master's Thesis, The University of Richmond]. http://scholarship.richmond.edu/masters-theses
Murdock, H. (2017). Operational Auditing: Principles and Techniques for a Changing World (1st ed.). Taylor and Francis Group, LCC.
QVALON Blog. (2021). Operational Audit Overview: Definition, Process, and Purposes | QVALON. Qvalon.com. Retrieved, October 12, 2021 from https://qvalon.com/blog/operational-audit-overview-definition-process-and-purposes/
Schroeder, Tobias. (2018, November 26). How to Structure an Internal Audit Team. Excellence Blog. https://blog.softexpert.com/en/how-to-structure-internal-audit-team/
Gesta, Charlotte G. - 2019-100594
1) Recruiting employees is extremely important as it ensures the employees that they are perfect fit for the business. Furthermore, recruitment engage a range of important benefits which includes gaining skilled employees, assures cultural fit, saves time and money, improves employee satisfaction and ensures positive brand image. According to Clarke (2019), an internal auditor is a company employee who independently and objectively evaluates the organization’s operations. Its role is to gather relevant and objective information about the organization and also essentially serves as the eyes and ears of the company’s senior leadership and board of directors. Their work can be covering any area of an organization but they must be directed by the audit committee. It is also important to take note that the audit committee must be composed of the right people with the right mindset and relevant expertise to be successful. They should be independent, have an ability to approach responsibilities with a questioning mind and healthy sense of professional skepticism. Bringing a quality audit staff member can result to business harmony, avoid fraud, gain employees’ self-improvement, and business success.
ReplyDelete2) A team is defined as an interdependent set of people that is part of another larger social system or organization and that has been organized to accomplish a particular purpose or set of purposes (Stewart et al., 1999). Based on some readings, teams have been shown to improve productivity and efficiency in some work setting, but not all. It is also common nowadays what they called self-directed teams. A self-directed work team (SDWT) is a team that acts with a relatively great degree of autonomy by exercising control over such things as how the work is organized and completed, who performs which roles, and how performance is measured (Stewart et al., 1999). Self-directed teams sometimes decide if the team will have a leader and they will be the one who will choose it. The nature of the teams currently used in internal auditing varies across organizations. While in some organizations individuals are allowed to self-select into teams, teams are typically assigned by an audit manager or by the CAE. Teams are responsible for the majority of the assurance work done in a typical internal audit setting. In most cases, the team is accountable to a manager or the CAE, who is responsible for ensuring that the team effectively fulfills its responsibilities.
ReplyDeleteReferences:
Amodeo, J. (2021, February 24). The Importance of Recruitment in HR Management. Employee Connect https://www.employeeconnect.com/blog/importance-recruitment-hr-management/
Characteristics of an Effective Audit Committee. (2018, May 11). MHM Knowing You. Retrieved October 20, 2021 from https://www.mhmcpa.com/insights/article/characteristics-of-an-effective-audit-committee-1
Clarke, I. (2019, May 01). What Is an Internal Auditor & Why Should You Hire One?. Linford and Company, LLP. https://linfordco.com/blog/what-is-an-internal-auditor/
Prawitt, D. (2003). Managing the Internal Audit Function. First Printing. https://na.theiia.org/iiarf/Public%20Documents/Chapter%206%20Managing%20the%20Internal%20Audit%20Function.pdf