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Internal, External, and forensic accountant/audit

Please include your opinions and personal experience if you can. You may also do some Internet and library research to add to your response.

1. Contrast and compare the role of the following:
a. The internal auditor.
b. The external auditor.
c. The external forensic accounting consultant in an external audit

2. List the various elements of fraud within the organization. Give several examples of each.

3. What is the purpose of discovery?

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Solution Preview

The internal auditor is an employee of the firm who oversees operational and accounting procedures. The external auditor is required by law for any publicly traded company. The external auditor is an independent accountant(s) from an independent accounting firm. Since the passing of the Sarbanes Oxley act of 2002, external auditors have had their duties redefined by the federal government. They are required to examine, analyze and advise on all aspects of internal control documenting all findings and advice to report to the government.

The forensic auditor is sometimes hired by firms to ensure compliance to the act but more often they are called in after a firm is in trouble with the law. A forensic auditor performs investigative audits with language suitable for litigation in a court of law.

Examples of fraud-

Tax evasion-On June 23, 2009, in Phoenix, Ariz., Mario Alexander Pino, a Scottsdale, Arizona businessman, was sentenced to serve 12 months in federal prison for failure to file a federal income tax return. Pino, a self-employed consultant, was ...

Solution Summary

This post describes in detail the difference between and internal, external, and forensic auditor outlining the roles and responsibilities of each