Currently, a client with an out-of-control system is grasping for a change in order to regain their internal controls. For any company, internal controls are highly important for success. Internal controls assist with minimizing mistakes and dishonesty; however will not completely eliminate them. The client has an out-of-control system in operation and will definitely benefit from having an internal accountant. Therefore, it is extremely recommended that a well-qualified internal accountant be hired by the company. An internal accountant will provide management with the necessary information needed to handle issues that arise, as well as preform system audits to maintain internal accountability. Setting forth a reliable internal audit system will build stability within the company and assist with violations occurring with laws and regulations. The role of an internal accountant will include, but are not limited to, working closely with the owners and department managers to evaluate the company’s performance in the most vital areas of operation and review the policies and procedures to ensure they are in line with the company’s mission and goals.
More specifically, the internal accountant will evaluate the assets, financial accuracy, and that the standards of the government and industry are being followed correctly. The internal accountant will also serve as a security measure for the company and their assets. To directly describe the responsibility of an internal accountant the first action would be to assess the current system and create a plan of action to correct it. The audit will be focusing on deficiencies and areas of improvement. The plan will consist of correcting the items found to be working against the company and implementing suggested changes within. Once the internal accountant has completed their assessment, a formal written recommendation describing the current control system and the deficiencies, along with an explanation of how management can correct and improve the issues. The hiring of an internal accountant has many advantages, especially for a company with an out-of-control system such as the client. The first would be the money saving attribute because there would be no need to hire an outside auditor.
Minimizing deficiencies to prevent a long-term negative affect is another hopeful advantage, as well as improving the overall functioning of the company to be more efficient in operations and successful in hitting the company’s mission and goals that have been set. The ideal candidate for the internal accountant position will pose an exceptional knowledge base of the company’s industry operations and goals. This candidate will have access to confidential information that others may not possess, therefore being part of the company’s staff will be able to conduct evaluations of the system and provide management with the necessary tools to correct issues as they surface. Specific qualifications and requirements need to play a major role in the hiring process of the internal accountant. These items would include the proper amount of education and experience, to include the required licensing to conduct the appropriate job functions legally. Experience will play a primary role when it comes to written reports and timely problem solving techniques for the current out-of-control system.
The client advantage to hiring a candidate with a certain amount of knowledge of the industry would be that the candidate will already have a direction based off of what they know works versus what does not work. As a final part to the hiring process, the internal accountant should display personal attributes that include basic characteristics. Attributes such as being confident, trustworthy, open-minded, and observant. Many other qualities would be looked upon as well. Thus, a recommendation to hire a well-qualified, knowledgeable, and experienced internal accountant would be an extreme advantage for the client. The client will need to display an open line of communication and maintain that communication for the success of the company’s internal controls.
FDIC. (2013, September 16). FDIC LAws, Regulations, Related Acts. Retrieved from Federal Deposit Insurance Corporation: http://www.fdic.gov/regulations/laws/rules/5000-3250.html