Tushar has been appointed as internal auditor for Spark Limited, a medium-sized manufacturing company. During the review, Tushar notices several discrepancies in the disbursement records and suspects there might be weakn

In the given case, Tushar notices several discrepancies in the disbursement records and suspects there might be weaknesses in the internal control system. While reporting the issues to the management and maintaining his independence & objectivity, the responsibilities of Tushar as an Internal Auditor with respect to the accounting function and financial records of the organization include the following: To ascertain adequacy of system of internal control by a continuous examination of accounting procedures, receipts and disbursements, and to provide adequate safeguards against misappropriation of assets. To operate independently of the accounting staff and must not in any way divest any of the responsibilities placed upon him. Not to involve in the performance of executive functions in order that the objective outlook does not get obscured by the creation of vested interest. To observe facts and situations and bring them to notice of authorities who would otherwise never know them and also, critically appraise various policies of the management and draw its attention to any deficiencies, wherever required. To associate closely with management and keep knowledge up to date by being informed about all important occurrences and events affecting the business, as well as the changes that are made in business policies. To recommend improvements to accounting controls, processes, and systems and avoid implementing controls or making accounting decisions, as these are management's responsibilities. To assess the processes used to prepare financial statements and management reports and evaluate whether financial information is timely, accurate, and useful for decision-making. To remain free from undue influence by management or operational personnel and avoid assuming management responsibilities related to accounting or financial reporting. To provide unbiased assessments of accounting processes and financial records.