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Recommendation Brief for Abz Company

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Recommendation Brief for an Internal Accountant for ABZ Company

The importance of internal controls in an organization or a company cannot be over-emphasized in the wake of various laws geared toward protecting investors in publicly traded companies, especially the most recent Sarbanes–Oxley Act of 2002, which requires top management to include in its annual report a statement showing responsibility for establishing and maintaining adequate internal control over financial reporting. Stabilizing the company’s ship on turbulent financial waters or scaling mountains of government regulations will require strong and effective internal control.

The main objective of internal audit function is ensuring the achievement of a company’s objective in a broad perspective, which includes operations, financial reporting, and compliance to laws and regulation.
According to Cain (2010) “The benefit of internal audit is to ensure that the business is achieving its objectives, operating in a cost effective way and maximizing its return on investments while at the same time managing risks effectively.”

IIA Standards 2110 and 2210 define the roles of an internal auditor to include “(1) financial audits of financial reports and accounting control systems, (2) compliance audits that ensure conformity with company polices, plans, and procedures and with laws and regulations, (3) operational audits that evaluate the economy and efficiency of business process, (4) audits of effectiveness in achieving program results in comparison to established objective and goals”

Cytraus (n.d.), "Internal auditors serve in a self-evaluative or self-assessing function. They compare existing conditions ("what is") to a standard ("what should be") and suggest how to achieve the ideal.”

Companies and corporations multiply and economies and businesses face challenges of competition, survival,…...

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