Audit Services

If fraud, noncompliance, break-downs in internal controls or breaches in codes of conduct are not prevented, they must be detected in a timely manner in order to prevent financial, reputational, legal, morale and other damages to your company. Detective services in these areas include:

  • Internal auditing
  • Development of monitoring strategies and programs
  • Ratio analysis
  • Data mining and analysis
  • Compliance audits
  • Vendor audits

Recent examples of detective services provided for clients by Zack, P.C. include:

  • Developed a data mining strategy for the corporate credit card program of a publicly traded company, aimed at detecting fraud and noncompliance associated with use of the corporate credit card; For this same company, developed a revised internal audit program driven by the data mining as well as refined audit criteria.
  • Performed a compliance and internal control audit of the outsourced inventory warehousing, management, and order processing function of a book publisher, resulting in the delivery of a report recommending enhanced IT and financial controls at both the warehouse as well as by the book publisher.
  • Served as the outsourced internal audit function of a national trade association headquartered in Washington, DC for more than 10 years, providing recommendations for improvements in operations in virtually every function and department of the organization, including finance, information technology, human resources, educational programs, and member services.

More About Internal Auditing

Internal auditing is a frequently misunderstood service, so a few more words about it are in order. Internal audit is an ongoing process that focuses on a variety of services and activities aimed at maximizing an organization's internal controls relating to:

  • financial reporting,
  • compliance with laws and regulations, and
  • operational efficiency.

Internal auditing supplements, but does not duplicate, the annual audit work performed by an organization's independent CPA firm. Unlike the annual audit, whose focus is solely on determining whether the financial statements are free of material misstatement, internal auditing can focus on any functional area within an organization.

Zack, P.C.'s internal audit services can serve as either a completely outsourced internal audit function for your organization or as a supplement to an existing internal audit function (i.e. co-sourced). A wide variety of services can be covered under the scope of an internal audit function. Services often involve assessing and testing the design and operation of internal controls, not just in the accounting and financial areas, but in all areas of an organization (e.g. IT, HR, Sales, manufacturing, service delivery, etc). Some internal audit work is designed to focus on internal controls over financial reporting, while some focuses on compliance with laws, regulations or contract terms. Sometimes the focus of internal audit work is on process effectiveness and efficiency. Often, these different areas of focus are addressed on a cyclical basis.

Internal audit work is an ongoing process. With larger entities, this means we are providing services on a regular basis throughout the year. For smaller entities, this means that our services might be provided on a quarterly, semi-annual or even annual basis. Whatever the frequency or scope of services, internal audit services are always performed in accordance with a detailed plan that we develop with the entity's audit committee. Reports are always issued directly to the audit committee.

Zack, P.C.'s internal audit work can be provided for all types of entities, from commercial businesses to not-for-profit organizations and government agencies.

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