Assignment Instructions
**Assignment Title:** Internal Audit and Risk Control Case Study
**Learning Objectives:**
- Evaluate internal audit processes and assess compliance risks.
- Propose strategies to strengthen internal controls.
**Background:** This case study examines gaps in audit procedures and highlights risks to
financial reporting integrity.
**Tasks:**
1. Summarize the main audit challenges presented in the case.
2. Evaluate existing internal control systems.
3. Recommend three practical improvements based on industry standards.
**Formatting:** APA, 3–4 pages, include at least three scholarly references.
Case Study on Audit and Internal Control
As an external auditor reporting to Citigroup's audit committee, I will address key aspects
related to Citigroup Inc.
Criticism of Citigroup's internal controls and their purpose.
They are processes, policies, and procedures designed to protect a company's assets, ensure
accurate financial reporting, and promote compliance with laws and regulations.
Internal controls help mitigate the risks associated with financial improprieties, fraud, and
operational inefficiencies.
Financial reporting ensures the reliability and accuracy of financial statements.
Compliance with internal controls facilitates compliance with legal and regulatory
requirements.
Operational efficiency is well-designed controls that increase operational efficiency and
effectiveness.
Differentiating design control features and deficiencies occur when the design control is
flawed or inadequate.
monitoring and reporting contributed to this. Oversight of traders Inadequate supervision
of traders led to unauthorized activities. Lack of supervision allowed risky behavior to
persist.
Recommendations to strengthen Citigroup's internal controls improve risk assessment,
which regularly assesses risks across business units. Implement risk-based control testing.
Segregation of duties ensures a clear separation of responsibilities. Avoid conflicts of
interest. Automate management using transaction monitoring technology. Implement
automated reconciliation processes. Training and communication educate
**Assignment Title:** Internal Audit and Risk Control Case Study
**Learning Objectives:**
- Evaluate internal audit processes and assess compliance risks.
- Propose strategies to strengthen internal controls.
**Background:** This case study examines gaps in audit procedures and highlights risks to
financial reporting integrity.
**Tasks:**
1. Summarize the main audit challenges presented in the case.
2. Evaluate existing internal control systems.
3. Recommend three practical improvements based on industry standards.
**Formatting:** APA, 3–4 pages, include at least three scholarly references.
Case Study on Audit and Internal Control
As an external auditor reporting to Citigroup's audit committee, I will address key aspects
related to Citigroup Inc.
Criticism of Citigroup's internal controls and their purpose.
They are processes, policies, and procedures designed to protect a company's assets, ensure
accurate financial reporting, and promote compliance with laws and regulations.
Internal controls help mitigate the risks associated with financial improprieties, fraud, and
operational inefficiencies.
Financial reporting ensures the reliability and accuracy of financial statements.
Compliance with internal controls facilitates compliance with legal and regulatory
requirements.
Operational efficiency is well-designed controls that increase operational efficiency and
effectiveness.
Differentiating design control features and deficiencies occur when the design control is
flawed or inadequate.
monitoring and reporting contributed to this. Oversight of traders Inadequate supervision
of traders led to unauthorized activities. Lack of supervision allowed risky behavior to
persist.
Recommendations to strengthen Citigroup's internal controls improve risk assessment,
which regularly assesses risks across business units. Implement risk-based control testing.
Segregation of duties ensures a clear separation of responsibilities. Avoid conflicts of
interest. Automate management using transaction monitoring technology. Implement
automated reconciliation processes. Training and communication educate
