-
Sean Patrick Walsh posted a new activity comment 7 years, 6 months ago
Interesting article and aspect of risk management. Measuring risk can already be quite difficult on the type of risk, the information that can be gathered about the risk, and how easily quantifiable and qualitative measurements can be discerned regarding the risk. I can only imagine how difficult anticipating the unknown(s) about risk evolving in…[Read more]
-
Sean Patrick Walsh wrote a new post on the site MIS5208 Spring 2017 7 years, 7 months ago
This morning in class, Professor Ferrara presented a fraud scenario of him and a friend playing golf. The friend mentions to the professor that his company will be acquiring another company in the very near […]
-
Sean Patrick Walsh posted a new activity comment 7 years, 8 months ago
Technology has already displaced more jobs than it has created, so it may be wishful thinking to believe technology will create more jobs in the future at this point. Also, it isn’t just that machines can do a job cheaper than a human based upon salary costs. Businesses that automate work pay less in insurance, benefits, and taxes since machines…[Read more]
-
Sean Patrick Walsh posted a new activity comment 7 years, 8 months ago
Said,
“We all have integrity but sometimes we can encounter situations where doing the right thing is wrong for us,” raises the age old concept of the moral dilemma. We can make the right decision for the whole and have one outcome, or we can make the right decision for ourselves and have another outcome. If we consider a decision due to…[Read more] -
Sean Patrick Walsh posted a new activity comment 7 years, 8 months ago
Fraud examples like Enron are easy to paint specific individuals, especially C-Suite level, as greedy self-interested parties behind the actions and benefits of the fraud. It fits the narrative behind fraud too in that fraud is carried out for the benefit of one or a handful of individuals. What I think a lot of people miss is the type of fraud…[Read more]
-
Sean Patrick Walsh posted a new activity comment 7 years, 8 months ago
I totally agree with your point regarding the maturity of a business, or more importantly the maturity of its processes. A business would have to have some type of “crystal ball” to fully define a process on day 1 of operations to know exactly what controls it needs 20+ years later. Just the rate at which technology changes would prevent a…[Read more]
-
Sean Patrick Walsh posted a new activity comment 7 years, 8 months ago
Good question, but we might need to specify which jobs. Machines have already taken over many jobs in manufacturing and sales for instance. Ford doesn’t need a human to do each step in the assembly process for a vehicle anymore, and Amazon doesn’t need a person to take every order placed for their goods or services. I saw an article recently that…[Read more]
-
Sean Patrick Walsh posted a new activity comment 7 years, 8 months ago
3. A person’s character is very crucial in the audit industry. How would you build your reputation and maintain a good ethical character in this industry?
Integrity is the backbone of a solid reputation in anything one does, but with humility in close second. Integrity takes time to build, but can be destroyed instantaneously if neglected. I t…[Read more]
-
Sean Patrick Walsh posted a new activity comment 7 years, 8 months ago
1. How much of automated controls should be desired? Is it beneficial to consider controls at the initial design phase or controls are introduced as and when needs arise?
I think automated controls are the ideal control type since they remove, at least as much as possible, the potential for human error whether deliberate or not. Although, I…[Read more]
-
Sean Patrick Walsh posted a new activity comment 7 years, 8 months ago
I agree with you concerning automation. The more a company can automate in a process the less risk a business is exposed to from manual entry errors from employees. Aside from removing or lessening risks due to entry errors, automation also speeds up many different processes of a business. This increase in speed can translate into cost cutting…[Read more]
-
Sean Patrick Walsh posted a new activity comment 7 years, 8 months ago
I agree that ERP system flexibility is a great competitive selling point. Being able to purchase a system that gives the business the flexibility to adjust the system to fit its individual needs is definitely a positive aspect. Having a system in use that is rigid may not provide the streamlined efficiency that a business wants with its ERP…[Read more]
-
Sean Patrick Walsh posted a new activity comment 7 years, 8 months ago
In your example I agree that standardization would not be recommended. I am not really sure of when a business would have to, or be inclined to, implement a control only temporarily though. Does understanding the business need for a control actual manage the cost of the control? I can see the business understanding the need for a control…[Read more]
-
Sean Patrick Walsh posted a new activity comment 7 years, 8 months ago
I like the idea of a built-in ability to monitor at real-time. If the package came with some type of HUD for management and key personnel to display on their work stations that would make the idea even more attractive. By having the ability to track key metrics to highlight efficiency and potential fraud at real-time would definitely be a great…[Read more]
-
Sean Patrick Walsh posted a new activity comment 7 years, 9 months ago
4. What aspect of compliance should an organization put the most effort into ensuring their controls are adequate? What factors about an organization (it’s industry, profit / non-profit, international, …) would drive this answer?
The aspect of compliance that an organization should put the most effort into ensuring its controls are ade…[Read more]
-
Sean Patrick Walsh posted a new activity comment 7 years, 9 months ago
3. When is the cost of implementing a compliance control higher than the benefit obtained? What should an organization do to ensure efficiency and profitability?
The cost of implementing a compliance control may be higher than the benefit obtained when the control is not standardized. Standardizing a control creates efficiency in…[Read more]
-
Sean Patrick Walsh posted a new activity comment 7 years, 9 months ago
SOX actually places that very stipulation of firms that provide accounting auditing services to publicly traded companies. I believe an audit lead can not audit the same business for more than 5 consecutive years if I remember correctly in order to prevent the auditor from developing too close a relationship with the business it is auditing and…[Read more]
-
Sean Patrick Walsh posted a new activity comment 7 years, 9 months ago
Standardization definitely helps cut and control costs associated with a process or function. I think regulatory compliance is an example of when a compliance control’s costs may exceed its benefits. Many statutory regulations regarding compliance are put in place for protecting stakeholders outside the business in mind, and not benefiting the…[Read more]
-
Sean Patrick Walsh posted a new activity comment 7 years, 9 months ago
Certainly! Now, the question then becomes if there are other services being provided by the external auditor to the business. That was one of the major points of breakdown with Arthur Andersen and its role in Enron’s control failures. Since Arthur Andersen provided other consulting services to businesses it was less inclined to “find” faults with…[Read more]
-
Sean Patrick Walsh posted a new activity comment 7 years, 9 months ago
I agree that an impartial and unbiased judgement is a sign of the independence that an audit team has within a business. In order to maintain the unbiased opinion, do you think audit personnel should be rotated regularly concerning where and what they audit in a business? I think by rotating the audit personnel a business will prevent from…[Read more]
-
Sean Patrick Walsh posted a new activity comment 7 years, 9 months ago
2. How is independence maintained when working for the company as an internal auditor?
Internal auditor independence is built and maintained through the audit committee. The audit committee is set up by the board of governance of the business, and is comprised of personnel independent of the company who should have proficiency in accounting,…[Read more]
- Load More