The Need for Control _______________________________ ليرة بتعمل فرق>>>>>>>>>>>>>> Inadequate segregation of duties in the IT department prompts a tense meeting between the audit executive and chief information officer. Dave is the chief audit executive (CAE) of Chem-R-Us (CHRU), a leading provider of services to the oil and chemical manufacturing industries. CHRU has annual revenues approaching US $1 billion and is traded on the New York Stock Exchange. The company maintains offices throughout the United States, with a headquarters facility in Los Angeles. Since the recent economic downturn, CHRU has shrunk its IT workforce through attrition, choosing not to backfill positions that were vacated due to voluntary separation or job transfers. The departing employees workload was generally reassigned among remaining employees. As a result, numerous tasks related to the U.S. Sarbanes-Oxley Act of 2002, as well as other compliance duties, recently changed hands at the firm. To make matters worse, certain control processes that relied on segregation of duties are now consolidated among the same employees. As Dave returns to his office from a difficult meeting with Cynthia, CHRUs chief information officer (CIO), he sits down heavily on his chair. Dave had requested the meeting after three of Cynthias departments failed recent audits. Plus, the external auditors had begun asking Dave if he was aware of control deficiencies in the IT function. When confronted with the evidence of a deteriorating control environment, Cynthia told Dave that the cost of maintaining appropriate control segregation was excessive and outweighed the potential benefits. Quite frankly, she said, in this climate, our focus is on streamlining and cost-cutting. And I am sure our stockholders would agree. Dave is surprised by Cynthias cavalier attitude, and he is unsure whether to try working directly with her or to address the situation with the audit committee. He also doesnt know if other executive managers share his concerns, or if the CEO and chief financial officer (CFO) would support him in opposing ITs lax approach to controls. What are Daves options for handling this situation? What could he have said to Cynthia to help her understand the need for adequate controls, regardless of economic conditions? How can Dave turn this negative experience into a positive initiative? /theiia.org/intAuditor/ask-the-experts/
Posted on: Thu, 21 Nov 2013 20:27:13 +0000
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