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This is not fair, Internal Auditor must not report to accounting manager at all.
Objectivity of internal auditor would be impaired. His work performance & decisions would be biased which is against codes of professional ethics.
Then the Accounts manager will be requesting the divisional heads to fulfill their requirement to end this audit process....
Internal Auditor may discuss the concerned issues with the Accounts manager of Financial controller. But normally the internal audit report is issued to the the audit committee and then to the concerned HOD's for corrective actions.
This should not even happen in the first place, and it is a big NO!
If this happens their will be a potential conflict of interest.
If he reports to the accounts manager, he wont be able to examine the company's books with an objective eye. The reason being that the person ultimately responsible for the books, the accounts manager, will be the internal auditor's boss.
In a small Company if the accounts manager oversee most of the functions of the board then its ok. In large companies IA have direct access to CEO and Audit comitte constituted by the board. If in large company IA reports to Account. manager then his independecne is questionable.
If Internal auditor is reporting to Accounts Manager, purpose of the Internal will be lost. By the why, who is sugeesting to Board to appoint IA. if there is only Manager Accounts in that company.
Its not possible for internal audit to report to accounts Manager. Becuase, accounts Manager rule is like a mediator between end user (executor) and audit personnel accordingly. Inter audt personnel can acquire the record from accounts Manager where and when required. Even some time accounts Manager report to internal audit.
