Recommendation Brief for an Internal Accountant
A client has an out-of-control system that is in need of change to get it back into control. Internal controls are an important part of a company. The role of internal controls is to keep mistakes from occurring as much as possible. It also aids in preventing individuals from being dishonest. The system the client is using is out-of-control, and it is highly recommended that the company hire an internal accountant. The internal can provide information to managers to limit any problems and audit the system internally.
Implementing internal audits will help build credibility within the company and keep violations from occurring that would violate laws and regulations. An internal auditor would work with management and owners to analyze important areas of the company’s performance. These areas that would be analyzed would include assets, accuracy of financial information, and ensuring that government and industry standards and regulations are being followed. Another point that the internal auditor would confirm is that the policies and procedures are aligned with the company’s goals.
An internal auditor would add security and be an asset to the company. The first step an internal auditor would initiate would develop a plan to evaluate the current control system that is in place. Any deficiencies found would be documented and evaluated for improvement. The deficiencies would need to be corrected if possible. At the completion of the audit from the internal auditor a written recommendation explaining the control system and what needs to be done to correct the deficiencies would be given to the management of the company.
There are positives in hiring an internal accountant for a company that has a system out-of-control. The first positive is the ability to minimize or extinguish any deficiencies before there are long- term effects. The second positives is the control system would be improved and help in the function of the company so that goals can be met more efficiently. A third positive is there would be a savings in money. There would no longer be a need to hire an outsider to do what an internal auditor can do. The individual hired would be knowledgeable about how the company is operated and its goals.
They would also have access to information about the company that others may not have access to. The internal auditor would be on staff to do evaluations on a continual basis and be able to assist management and solve problems as issues may arise. When looking to hire an internal accountant there are some requirements or qualification that the individual needs to possess. One requirement or qualification the applicant should have is the proper education and licensing that would be appropriate for the job of internal accountant.
Another area that would be important is have is experience. For the applicant to have experience in how to handle certain situations or already have ideas of what works and does not work is important. The experience can be a time saver in solving problems with the current system. A third skill that would be an advantage in an applicant would include being knowledgeable and experienced in report writing skills. The last are to look at for a possible candidate is person characteristics.
These characteristics would include being ethical, observant, self-reliant, confident, trustworthy, perceptive, and open-minded. It is important to hire an internal accountant as soon as possible because the company’s current system is already out-of-control. Hiring someone with experience would be beneficial and an asset to an already failing system. A good working relationship between the internal auditor and management is vital to the company. Having a good working relationship will help in communicating the needs and goals of the company.
A recommendation of hiring a well qualified internal accountant is vital to the success of the company.
References
- FDIC: Federal Deposit Insurance Corporation. (n. d. ). FDIC: Federal Deposit Insurance Corporation. Retrieved April 8, 2013, from http://www. fdic. gov Audit Process. (n. d. ).
- University Audit Office. Retrieved April 8, 2013, from http://www. audit. cornell. edu/audit. html Welcome to NewAccountantUSA. com. (n. d. ).
- Welcome to NewAccountantUSA. com. Retrieved April 8, 2013, from http://www. newaccountantusa. com
