This research. The answers of the research questions

This chapter presents the conclusions derived from the research.
The answers of the research questions are discussed, and followed by the
contributions of the study, and then it also provides some reflections for
better improvements along with recommendations for the case company, all
learners and practitioners, and related future researchers.

3.1 Conclusions

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Internal
auditing has come a long way. History is an important piece to our future by
learning from its mistakes. We have learned from the past errors and frauds
within the business community that more internal control and oversight are
needed to ensure accuracy and reliability of financial data reporting.

This research is
focused on the role and importance of internal audit in an organization. A case
study of the Stanford American School aimed to provide an example and answer the
questions of how those related concepts are implemented and regulated in the
company, and to find out the risks involved by the practices of a financial statement
audit.

Based on the
results of this research, it is easy to conclude that internal audit benefits company
much more than imaging. Properly developed internal audit system can be very
helpful to positively control and reduce business operational risks, improve
quality controls, prevent and reduce dangers of financial losses, and progress
all levels of decision making in the organization.

In the processes
of internal audit, there are some kinds of risks that an auditor needs to
identity. They are material misstatement risks included pervasive risk,
inherent risk and control risk, and the other risks from auditors included
detection risk and corruption.

Operations of
internal audit in Stanford American School and influence of the concepts may be
harder to grasp at first. All procedures described are to minimize risks and increase efficiencies at SAS that
has six stages of regular and perpetual practices such as planning, testing,
communicating, drafting, responding and reviewing. All evidential matters are necessarily
recorded with proper actions as stated in the locational strategies of an
internal auditor in order to keep everything clean for next audits.

3.2 Recommendations

Although
SAS has had great growth in last few years until now, and they have been
organizing with simplifying concepts in internal controls that make them an
advantage to provide low prices in the market with good teachers’ qualities, there
are several recommendations I have noticed which can be taken to SAS’s
betterment in the areas of internal auditing as following:

·        
SAS should do additional performance reviews to
their internal auditors, so the school can provide more feedbacks to their works.

·        
SAS should use of an independent trustee between
their finance manager and internal auditors to ensure that they are not
completely under control of finance department.

·        
Internal auditors should do physical checks more
often on their inventory and stationaries like once a month or once a quarter
rather than once a year.

·        
Internal auditors should strictly consider more practices
of segregation of duties as the school practically avoiding that to save costs
of labor.

·        
Internal auditor should perform analytical
procedures to add more logically audits such as developing an expectation of
the account balance without checking sources every time, determining the amount
of differences from the expectations, and then they can find out more realistic
errors or frauds by any unusual accounts happened.

After
researching on this topic, I would like to share and recommend some ideas to
all leaders, analytics, practitioners, and learners as below:

·        
Individuals should reflect and evaluate
critically about others’ and the majorities’ values above each individual gain whether
in family, business, and government in order to add worthier to economics
system of the nations.

·        
Individuals should share equality rather than
discrimination at all costs and learn the causes and effects in the individual
life, family, and organization or politics in order to provide each person a
happy life.

·        
Individuals should learn more on ethical
behavior and management with the aims of giving better moral dilemmas in all
circumstances correctly, effectively, satisfyingly, and valuably.

Future
reappearance of this research on a wider scale referred to several companies or
several years or several benchmarks is recommended. Participation of larger
amount of companies would allow better understanding of the results in broader
context. It would also allow researcher to use better concepts of internal
audit’s functions. In relation to future researches, the cost of implementation
of an internal audit and internal control should be explored. In such studies,
the focus should be on the tangible influence of those concepts on company’s
profitability would provide better benefits to all other users.

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