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Internal Audi

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Submitted By E68193
Words 1003
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Introduction
July 30, 2002 the Sarbanes-Oxley Act was enacted section 404 of this act requires management as well as the internal auditor to report on a company’s internal control. Today’s complex business and regulatory environment has evolved internal control auditors from corporate cop to a savvy in-house consulting service (Resolver, 212). Internal control auditors will learn the intimate ins and outs of the company they work for companies prefer to have in-house teams in this function and having this team available to assist the external financial auditors as an additional cost savings. Companies rely on internal audit teams to help the company become as effective and efficient as possible, monitor risks, and detect as well as prevent fraud.
Internal Control Auditors Role in Public Companies
The general role of internal control auditors is to give independent and objective control and feedback on business operations. (Bradford, 2010) Depending on the size of the company internal control auditors work with the company as a whole or with individual branches and departments to evaluate compliance with regulations and laws, assess the reliability of financial information by evaluating the effectiveness and efficiency of operations and risk management.
Management creates standard operating procedures for all processes of the business, the internal control department observes and tests samples to ensure that the employees are following the SOPs. During this testing internal control auditors are also testing the SOPs for opportunities of fraud; catching fraud that is currently taking place as well as offering guidance on practices to close opportunities where fraud could take place.
An internal control department is also an asset when it comes to bringing in the external auditing team to perform the 404 financial audit, the internal control departments testing

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