Internal Controls, an Internal Audit Function, and an Audit Committee

question 28

Essay

Internal controls, an internal audit function, and an audit committee are all elements of a strong corporate governance system. How should an external auditor evaluate these elements in making a risk assessment? What are the ethical signs that each system is operating as intended?

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Definitions:

Follower Perceptions

The thoughts, feelings, and beliefs held by followers about their leader or organization.

Charismatics

Individuals possessing a compelling charm or appeal that inspires devotion or enthusiasm in others.

Leadership Qualifications

The skills, knowledge, and personal attributes considered necessary for effective leadership, such as strategic thinking, communication abilities, and integrity.

Charismatic Leadership

A style of leadership that draws on the leader's personal charm and appeal to inspire and energize followers toward achieving a vision or goals.