Plastic Designs Ltd manufactures and sells plastic storage boxes and containers. The Board of Directors recently decided to establish an in-house internal audit function. Lesedi Marang was appointed as the chief audit executive (CAE). The internal audit function is placed within the finance division and the CAE reports to the chief financial officer (CFO) for both functional and administrative duties. Two (2) employees were transferred from human resource: salaries division and one (1) from procurement division to work in the internal audit function as internal auditors. All three (3) employees have degrees in financial management and no internal auditing experience.
Plastic Designs Ltd manufactures and sells plastic storage boxes and containers. The Board of Directors recently decided to establish an in-house internal audit function. Lesedi Marang was appointed as the chief audit executive (CAE). The internal audit function is placed within the finance division and the CAE reports to the chief financial officer (CFO) for both functional and administrative duties. Two (2) employees were transferred from human resource: salaries division and one (1) from procurement division to work in the internal audit function as internal auditors. All three (3) employees have degrees in financial management and no internal auditing experience.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 7E: Horton Technology has two divisions, Consumer and Commercial, and two corporate support departments,...
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Name and define the two (2) main roles of the internal audit function in an organisation
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