Accounting Capstone

Option 1: Assessing the Internal Audit Function

Ethel Romero

ACT575 – Advanced Auditing and Assurance Services

Colorado State University – Global Campus

Arlene Goodman

March 25, 2017

Executive Summary

        Arrow Electronics, Inc. is a worldwide supplier of merchandises, services, and solutions to industrial and commercial consumers of electronic components and enterprise computing solutions. The business contains a large selection of merchandise, from prominent electronic components and enterprise computing solutions suppliers, combined with a variety of services and solutions that service industrial and commercial clients to present modern goods. Arrow was integrated in New York in 1946 and attends over 100,000 consumers. The corporation supports over 300 sales facilities and 40 distribution and value-added centers in 53 countries, serving over 85 countries. The corporation has been divided in two business sections: the global components and the global enterprise computing solutions business. It delivers electronic components to OEMs and CMs through its global components business segment and provides enterprise computing solutions to VARs through its global ECS business segment. In 2016, the company started to allocate its headquarters from New York to Denver area, specifically Englewood. Arrow’s financial goals are to raise sales, growth markets and profits, and increasing return on invested capital. To accomplish such purposes, the business pursues to take substantial prospects to develop within the global market. To support its growing plan, the business seeks to acquire other businesses that will open other financial and marketing opportunities for growing and development in other business areas (Yahoo Finance, 2017)

        Arrow Electronics, Inc. has an internal audit team that is mainly in charge of providing autonomous and unbiased assurance and consulting services throughout an efficient and methodical approach that evaluates and improve the efficiency, efficacy, and success of risk management, control, and governance practices. The mission of this team is to be highly effective, efficient, and responsive in regards assisting the company to achieve its goals per the different accounting standards, compliance with GAAP rules, SOX, and corporate governance. The team reports directly to the Arrow’s Audit Committee and assist to senior executive management in the identification of the different key risk areas throughout the entire corporation. Internal examiners provide great ideas to resolve difficulties. They do their best by continuously improving their proficiencies. They participate in evaluating the business’s practices, operations, and objectives. They deliver impartial, autonomous, specialized guidance to all levels of management toward continuous improvement. Internal auditors offer a range of talents to the business (H. Eaton, personal communication, February 23, 2017).