This was another Insight of the same movie that was posted on the Pitzviews. Another version here.
Insight
Paper: Inside Job
Internal
auditing is said to add value and improve an organizations operation. The movie
could relate to as to many aspects in internal auditing. The movie is about the
financial crisis in the United States in 2008 which cost people their jobs even
and their savings .It showed different interviews to some of the big names in
the financial industry, and different hearings where the senators would ask the
representative of the firm concerned.
Several people
were involved from banking to academic to government. They were hesitant in
answering direct to the point questions, at most time they would not answer the
question straight, some of them did not even want to be interviewed. It is
obvious that they are concealing something. The top executives became even richer
but it is at the expense of the citizens who cater the burden by paying their
taxes. This should not be happening. Reality really is that banks and
businesses loss millions because of employee theft. Different types of fraud
were committed.
In our class discussion, internal control is
defined by the process effected by an
entity’s board of directors, management, and other personnel, designed to
provide reasonable assurance regarding the achievement of objectives relating
to; operations, reporting and compliance. Internal auditors deal with issues that are
vital in the company as a whole. As we also discussed in the class, corporate
governance is the way organizations are directed and controlled. When these
different banks and financial institutions apply good corporate governance
risks could have been reduced. We could
also point out of the movie that there have been a lack of corporate ethics and
accountability. The movie showed how corrupt the top executives were.
Internal
auditing is important in every business. Through internal auditing we can detect
and prevent fraud, and monitoring the business operations of a company so that
the company can achieve its objectives and it can operate effectively and
efficiently for the benefit of its owners and stakeholders.
