Expert: Consuelo Herrera, International Accountant and Fraud Examiner - 11/4/2008

Question
QUESTION: What are the main advantages and disadvantages of changing the external auditor?

ANSWER: Dear Sa'ed,

Thank you for contacting me.

The main reason companies change the external auditor is because there were disagreements with the client regarding accounting matters or the like. By law, public companies must rotate the external audit firm lead partner every five years. The advantage in this case is that the organization is in compliance with regulations in that respect.

In general, regardless of the reason for changing the external auditor, the disadvantage is that the successor auditor must become familiar with the organization policies and procedures as well as with the industry in which the client operates. It means, more time and the likelihood of mistakes increases due to the audit risk.

If an external auditor has been with the organization for a very long period of time, it is an advantage to bring someone new on board because he or she will have a new perspective of the company. As a result of this new perspective, the auditor may find situations or events that were overlooked by the predecessor auditor because he or she was very familiar with the operations throughout the enterprise.

Hope it helps.

I wish you continued success in your endeavors.

Sincerely,


Consuelo Herrera, CAMS, CFE

---------- FOLLOW-UP ----------

QUESTION: What are the job duties and responsibilities of the Internal Audit Manager?

Answer
Dear Sa'ed,

The best place to find job descriptions and responsibilities for internal audit manager are the major recruiting firms such as monster.com

Do a search within the auditing and accounting field and you will find plenty of descriptions.

Job description

The Internal Audit Manager will be reporting to the Director of Internal Audit. The Internal Audit Manager will coordinate, manage, and direct all aspects of financial, internal control, and operational audits throughout the Company's 40 + global locations. This position represents the start of a career that extends beyond internal audit. For example, see below:

Key responsibilities of the Internal Audit Manager will include:
• Develop and execute risk-based audit plans
• Plan and manage staff across simultaneous audits in multiple locations to accomplish annual audit plan
• Conduct special projects and investigations
• Assist staff auditors in gaining control and audit skills as well as validating that work performed meets or exceeds audit standards and objectives
• Ensure the accuracy and clarity of audit documentation and guide audit staff in the preparation of audit reports
• Lead the staff in communicating audit results in an objective and accurate manner to the all levels of financial and operational management
• Develop and maintain contacts with financial and operational executives, to ensure an understanding and acceptance of audit requirements, approach and reporting
• This position involves travel to both domestic and international locations. Can expect 30% to 50% travel


Who we are looking for

Ideal Candidate:
• Bachelors' degree in Accounting, with CPA certificate
• 6 + years experience in finance and accounting, with several years auditing experience
• Sound project management skills as evidenced by management of multiple, simultaneous financial audits, or equivalent engagement/project experience
• Strong knowledge of internal control concepts and GAAP
• Working knowledge of Sarbanes-Oxley Act requirements
• Strong written and oral communication skills
• Strong knowledge of SOP 81-1 (government contracting would be a big plus)
• Experience in a manufacturing company environment

I wish you the best.


Sincerely,

Consuelo Herrera, CAMS, CFE