Andrew Sommerhalder is a resident of Toronto, Canada. He has professional experience in roles such as accountant, chief financial officer, controller, and senior accountant. His most recent position was as a group controller at Envision, a company specializing in transforming environments to create exceptional branded experiences for well-known North American companies. In addition to his primary duties, Andrew Sommerhalder was responsible for investigating and resolving accounting discrepancies and irregularities, a key part of internal auditing.
Examining financial records in detail is vital to an internal auditor's job. Even the smallest discrepancies can raise red flags, prompting further investigation of transactions, invoices, bank statements, and other documents.
This work often starts with compliance analysis, the assessments or analysis conducted to ensure that a company follows its own rules and regulations. Internal auditors identify issues early before they escalate by ensuring adherence to policies and rules. Areas like procurement, expense reporting, and capital expenditures are high-risk and require close monitoring. Deviations from approved processes and procedures often signal serious problems.
Risk management is another focus where internal auditors aim to strengthen vulnerabilities where fraud or theft could occur. Assessing organizational risk allows internal auditors to focus on units or divisions with lax controls. Whether it is weakness in the segregation of duties or lack of approval protocols, remediating such risks can prevent problems.
When auditors find irregularities, they work to determine if they are unintentional mistakes or deliberate acts. Theft and fraud are, unfortunately, realities, so they investigate suspect activity thoroughly and refer credible cases to the proper authorities. Forensic accounting skills and understanding human behavior and motivation are assets in these situations.
Clear communication of their findings and recommendations is equally important. Detailed reports and presentations keep leadership and management informed. Feedback loops allow auditors to confirm that corrective actions are implemented and working as intended.
