THE IMPORTANCE AND ROLE OF INTERNAL AUDIT MISSIONS OF STOCKS

Maria-Andreia Iliescu (Ristea), Nensi Xhani, Marioara Avram and Cristian Drăgan
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Maria-Andreia Iliescu (Ristea): University of Craiova, Doctoral School of Economics, Faculty of Economics and Business Administration, Economy Craiova, Romania
Nensi Xhani: University of Craiova, Doctoral School of Economics, Faculty of Economics and Business Administration, Economy Craiova, Romania
Marioara Avram: University of Craiova, Doctoral School of Economics, Faculty of Economics and Business Administration, Economy Craiova, Romania
Cristian Drăgan: University of Craiova, Doctoral School of Economics, Faculty of Economics and Business Administration, Economy Craiova, Romania

Annals of University of Craiova - Economic Sciences Series, 2020, vol. 2, issue 48, 127-132

Abstract: In the case of entities with a significant inventory/stocks turnover, the implementation of internal audit function must be a concern of both management and shareholders, in order to prevent and detect the risk of embezzlement of these assets. This procedure must provide assurance that the inventoried stocks are correct and in a proper condition to be used according to their nature in the entity's activity. It is necessary for the entity to implement its own appropriate policies and procedures regarding these categories of assets' management and administration due to the fact that these assets present a very high risk of fraud and, in most cases, this can be provoked even by entity's employees

Keywords: internal audit; stocks; economic entity; financial statements; fraud. (search for similar items in EconPapers)
JEL-codes: M40 M41 (search for similar items in EconPapers)
Date: 2020
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