a An internal audit must transform and develop if it’s going to fulfill its mission and
remain significant in the future. There was audit executive survey for Deloitte’s 2018
global chief. Internal audit groups have the most impact and influence on the
organizations. Forging internal audits path to greater impact and influence, explores the
current state of internal audit functions worldwide, focusing on those with the greatest
impact and influence within their broader organization. Deloitte & Touche LLP, (2020,
April 24, n.d.) The survey findings states that the progress over the last two years with
CAE’s perceive their functions to have impact and influence. The internal audit groups
strive to have innovation that delivers more value to the organization. Being innovative
does not mean you have to change every aspect of your audit plan. Being innovative
means understanding how the organization is evolving and how best to apply new
approaches and technologies to serve the organization’s needs while optimizing resources.
Hatherell, Global Internal Audit Leader (2018, n.d.)
a a a Within the case of Arthur Anderson Enron regarding audit failure, there is
substantial knowledge provided on social responsibility ratings on market returns to
Arthur Anderson (AA) clients and following the Enron audit failure. Linthicum, C.,
Reitenga, A. L., & Sanchez, J. M. (2009, November 18). Chaney and Philipich (2002)
found that AA’s loss of reputation which turned into a negative market return to AA
clients following the Enron audit failure. Organizers of the social responsibility argue that
the social responsibility can improve the reputation of the firm, while detractors argue that
it is considers a “poor use of the shareholders money”. Linthicum, C., Reitenga, A. L., &
Sanchez, J. M. (2009, November 18) It was concluded that the negative returns were
related to the investor’s loss of confidence in AA. I recommend that the business will
focus on ethical behavior. This is referring the economic development while improving the
quality of life of the workforce, families, and local communities.
I feel this will have a positive influence on the firm’s reputation. The common motivation
is economic benefits like indirect benefits. It was mentioned in forbes.com that the
corporation should apply its assets for social purposes, instead of the profit for its owners.
It might be beneficial to conduct a study where the marketing is expected to re-assess
issues related to the firm’s reputation.
Sources:
Get in touch Neil White Principal | Deloitte & Touche LLP nwhite@deloitte.com . (2020,
April 24). The Innovation Imperative: Forging Internal Audit's Path. Deloitte
United States. Retrieved October 27, 2022, from
https://www2.deloitte.com/us/en/pages/audit/articles/global-chief-audit-executive-
survey.html
Microsoft. Microsoft Support. (n.d.). Retrieved October 27, 2022, from
https://support.microsoft.com/en-us/windows/find-my-downloads-in-windows-10-
de903ee9-7d37-256b-9145-f0f016c5aed8
Linthicum, C., Reitenga, A. L., & Sanchez, J. M. (2009, November 18). Social
Responsibility and corporate reputation: The case of the arthur andersen enron
audit failure. Journal of Accounting and Public Policy. Retrieved October 27, 2022,
from https://www.sciencedirect.com/science/article/abs/pii/S0278425409000891
