Posted by & filed under Accounting Careers, Auditing, Canadian Economy.

Profession:

Internal Auditing is now a fully developed profession, Internal audit developed as an extension of the external audit role in testing the reliability of accounting records that contribute to published financial statements. These are exciting times for internal auditors, especially those who see themselves as agents of change within the organization. The drive to do more with less, to do the right thing, or to re-engineer the organization and the way it does business in creating an environment of introspection and change.

Let us look at “Research in Motion” (RIM) 2010 annual report, the maker of the famous Blackberry mobile phone:

Go to page 24 of the RIM annual report: Other Changes- The company established an internal audit department and an officer, usually the Chief Internal Audit officer reports directly to the Audit & Risk Management Committee as well as administratively to the Co-Chief Executive Officer, Jim Balsillie.

The above note proves how important the Internal Auditor is to an organization such as RIM.

 Role of the Internal Audit Dept.

Internal audit periodically reviews the enterprise-wide compliance function and processes to provide assurance to the audit committee on the program’s effective and efficient operation.

CERTIFICATION OF INTERIM FILINGS:

Visit the sedar.com website, and review the CEO certification, this certification states among many others that  the CEO Mr. Balsillie is at least responsible:

“For establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR). This process of helping Mr. Balsillie , certify to the investors that a process is in place to ensure reliable and accurate financial reporting. This is helped out by the Internal Auditi Dept. by testing and monitoring the financial and operational processes of the company.

 To find out more about internal auditing: Visit the websitewww.theiia.com

Discussion Questions:

1. Do you agree, that Internal Auditing has developed into an exciting new profession, due to the new Corporate Governance Legislation such as Bill C 198 in Canada and Sarbanes-Oxley in the USA?

2. In your opinion what skills should an Internal Auditor possess?

3. Without an effective Internal Audit department, would the CEO of RIM, be able to certifiy that the company’s controls are effective and operational?

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