- 10 Marks
AAA – May 2016 – L3 – Q2b – Internal audit and outsourcing | Practice management
Draft a report assessing the need for an internal audit department in a growing company.
Question
Adepa Ltd, a fruit processing company, has been in operation for many years. It has managed to grow the business over the years and now has eight branches, four in rural areas and four in urban towns in addition to the head office. The management and those charged with governance are looking forward to the company adopting the latest technology in production – Advanced Technology Manufacturing (ATM) – and marketing and sales through the internet.
During the last audit of the financial statements of the company, the Managing Director suggested to the Senior Partner an assessment of the need for an internal audit department in the company. You were the audit manager who led the engagement team to do the audit. The Senior Partner has therefore asked you to carry out the assignment to assess the need for an internal audit in Adepa Ltd.
Required:
Draft a report to the Senior Partner on the assessment of the need for an internal audit department for Adepa Ltd., highlighting the factors to be considered in such assessment. (10 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Audit report, Internal Audit, Management, Needs Assessment
- Level: Level 3
- Topic: Internal audit and outsourcing, Practice management
- Series: MAY 2016