1).
The requirement of section 301.4 of the Sarbanes-Oxley Act of 2002, the audit committee of a public company needs to establish procedures for the receipt, retention, and handling of complaints received by the company regarding accounting, internal controls, or auditing matters. They are also required to establish procedures for those complaints to be treated confidentially, and for the submission process, the employees can submit anonymous their complaints about the accounting or auditing matters. This procedure is usually known as “whistleblower procedures.” By improving complaints, procedural can be very beneficial for an organization because they would be able to deal situations and concerns earlier before they develop into bigger crises. …show more content…
According to the American Institute of Certified Public Accountants (AICPA) Management Override of internal control states that in order for an effective whistleblower program should be overseen by the audit committee. Some other important things the document states that audit committee can encourage the employees by developing a culture where company’s staff can see how valuable is the whistleblower program for them. By showing and make the staff aware how the program works and build their confident in the program, by assuring them that their concerns or complaint would be address properly related to any internal control, auditing matter and accounting. Audit committee needs to gain their trust and increase their confident by providing them with good whistleblower …show more content…
In those type of situations, employees can lose their faith and confident in the procedure. They would not feel comfortable submitting their concerns and complaints anymore because they have lost their faith in the process. To keep their faith and confident in the procedure, it is very important that a follow-up action should be taken every time whenever complaints are submitted. By taking properly action against those complaints can help reveal fraud before they become a bigger crisis.
3).
International Standards for the professional practice of internal auditing issued by the institute of internal Auditors Standard 1000 state that the purpose, authority, and responsibility of internal audit activity should be explained in the internal audit charter, the code of ethics and the standards. The internal audit charter should be reviewed by the chief audit executive and then, it should be approved by the board and senior management.
Standard 1110 state that organizational independence can be achieved when the chief audit executive reports directly to the board. The chief audit executive must report to a level within the organization that allows the internal audit activity for performing its responsibilities. Standard 1110.A1 state that internal audit activity should be kept free from interference in concluding the scope of performing work, internal auditing, and communicating
The requirement of section 301.4 of the Sarbanes-Oxley Act of 2002, the audit committee of a public company needs to establish procedures for the receipt, retention, and handling of complaints received by the company regarding accounting, internal controls, or auditing matters. They are also required to establish procedures for those complaints to be treated confidentially, and for the submission process, the employees can submit anonymous their complaints about the accounting or auditing matters. This procedure is usually known as “whistleblower procedures.” By improving complaints, procedural can be very beneficial for an organization because they would be able to deal situations and concerns earlier before they develop into bigger crises. …show more content…
According to the American Institute of Certified Public Accountants (AICPA) Management Override of internal control states that in order for an effective whistleblower program should be overseen by the audit committee. Some other important things the document states that audit committee can encourage the employees by developing a culture where company’s staff can see how valuable is the whistleblower program for them. By showing and make the staff aware how the program works and build their confident in the program, by assuring them that their concerns or complaint would be address properly related to any internal control, auditing matter and accounting. Audit committee needs to gain their trust and increase their confident by providing them with good whistleblower …show more content…
In those type of situations, employees can lose their faith and confident in the procedure. They would not feel comfortable submitting their concerns and complaints anymore because they have lost their faith in the process. To keep their faith and confident in the procedure, it is very important that a follow-up action should be taken every time whenever complaints are submitted. By taking properly action against those complaints can help reveal fraud before they become a bigger crisis.
3).
International Standards for the professional practice of internal auditing issued by the institute of internal Auditors Standard 1000 state that the purpose, authority, and responsibility of internal audit activity should be explained in the internal audit charter, the code of ethics and the standards. The internal audit charter should be reviewed by the chief audit executive and then, it should be approved by the board and senior management.
Standard 1110 state that organizational independence can be achieved when the chief audit executive reports directly to the board. The chief audit executive must report to a level within the organization that allows the internal audit activity for performing its responsibilities. Standard 1110.A1 state that internal audit activity should be kept free from interference in concluding the scope of performing work, internal auditing, and communicating