Leonard Bailey is director of internal auditing for a large retail chain with headquarters in Atlanta. Wilma

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Leonard Bailey is director of internal auditing for a large retail chain with headquarters in Atlanta. Wilma Lawrence is vice president of operations for the firm. She has worked for the firm for 25 years and is extremely protective of what she considers her domain.

The very first audit of her office has been scheduled to begin in two weeks. Leo has taken Claire Nunn, his new audit manager (whom he hired from a rival firm in San Francisco)

with him for a preliminary meeting with Wilma. Wilma appeared courteous but somewhat uneasy during the meeting. After the meeting, Leo and Claire were leaving Wilma’s office when Wilma called Leo back inside. Claire went into the outer office to wait for him. Wilma partially closed the door and said, quietly but firmly, ‘Leo, I have long respected your business sense. I know you’ve never audited my territory before, but I have watched from a distance, and you do good work. But where did you get that girl? She should be sent home to knit! And you intend to let her lead an audit?” Leo knows that Wilma has a history of conflict with other female employees in the firm, but he also knows Claire is a competent auditor and supervisor.

Required:

a. What should be Leo’s emotional response to Wilma’s reaction to Claire? Why?

b. Should he take Claire off the audit, especially since this is the first audit of the executive management of operations? Explain.

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Internal Auditing: Principles And Techniques

ISBN: 9780894131677

1st Edition

Authors: Richard L. Ratliff, W. Wallace, Walter B. Mcfarland, J. Loeboecke

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