You are asked to plan and prepare for an operational audit of customer service and inventory levels of a wholesaling division that handles various types of small electric motors and parts.

Required:

a. Specify in detail the type of information the auditor should gather in the preliminary survey and identify the source of the information.

b. The division operates in a dynamic environment. Your primary audit thrust will be to determine the effectiveness of the division to (1) meet customer delivery demand so that 95 percent of all orders are delivered on time and 99 percent are delivered on time or within two weeks of specified delivery, and (2) determine that inventory levels are not excessive. Write a general audit program to accomplish the two objectives.