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Ethics and social responsibility issues are discussed in Chapter 24. As a result of these new pressures, the services of internal auditors have become more important to all interested parties. There are now more and better-qualified internal auditing personnel and a higher level of enterprise status and importance attached to the position. The IIA has grown from its first, 25-member charter chapter in 1942, to an international association with over 90,000 members and hundreds of local chapters worldwide.

After the war ended, Brink returned to organize and head internal auditing for Ford Motor, and his college thesis was published as the now long-out-of-print first edition of this Modern Internal Auditing. About that same time period and in 1942, the IIA was launched. Its first membership chapter was started in New York City, with Chicago soon to follow. The IIA was formed by people who had been given the title of internal auditor by their enterprises and who wanted to both share their experiences and gain knowledge with others in this new professional field.

The driver controls the automobile, and all three of these represent the car’s basic internal control system. If the driver does not use or improperly uses the accelerator, brake, or steering wheel, the automobile will operate out of control. Expanding this concept just a bit, a stop sign, traffic direction sign, or gate crossing barriers all represent external controls to the auto and its driver. The driver is the operator of the automobile-based internal control process or system but has little decision authority over the message delivered from a traffic light external control.

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Accounting - What is Cost Accounting

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