AUDITING

Memory Technologies plc

Memory Technologies plc

Introduction

The study is related to Memory Technologies plc, in the context of company, internal audit is defined as "An independent, objective assurance and consulting activity designed to add value and improve year organization's operations”. It helps companies in accomplishing their organization's objectives, with a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes (Kraakman et al 2004). The permanence of the debate leads us to wonder about the theoretical issues relating the role of internal audit as a tool in the service of corporate governance. The difficulty arises in gauging the contribution of internal audit in the process of preparing and processing financial reporting, and improving performance. This paper presents the theoretical framework linking internal audit and Memory Technologies plc.

Role of Internal Audit in Memory Technologies plc

Internal audit concept has recently emerged in the accounting profession and it elbows its way, systematically, according to the way in which modern management practices are implemented in the companies whose goal is to become more performing and competitive on the actual market. The name of internal audit that is used actually represents a recent concept and it was used first in the United States of America when the entities were affected by the economic recession and when they had to pay important amount of money for external auditors that had to certificate the accounts of the stock exchange listed companies.

The Memory Technologies plc began to organize their own audit departments in order to reduce their costs by assuming the realization of the preliminary work within the entity and, in order to achieve the process of certification, they appealed to external audit offices, which were entitled to supervise the company's activity. The offices' employees were called external auditors and the companies' employees were called internal auditors in order to make a distinction between these two auditors' categories (Jensen and Murphy 2004).

Internal Audit Role Objectives for Memory Technologies plc

Review the accounting system and the internal control system: the leaders' responsibility in setting an appropriate accounting system and an internal control one, in order to grant a major importance to the principle of business continuity.

Consideration of financial and operational information: the review of the methods used to identify, to count, to classify and to report the information and the specific examinations of some entity's activity distinguished aspects, including a detailed verification of transaction, account balances or of the procedures used for setting them.

review the economic system functionality, the efficiency and the effectiveness of all activities and operations categories;

Review the conformity with legal settlements in force and with that issued by internal decision of company's leadership;

Special investigations in particular domains, for example, fraud suspicion and any kind of losses prevention;

According to these realities, internal audit definition performed in many aspects connected to the evolution of this profession. The official definition that appears in all the rules and in the specialized literature is criticized by someone, others are considering it more restrictive or being explained insufficiently by professionals ...