case 1, answering A, B, C

2. Prepare one or more well-written internal observations that includes condition, B. Refer to exhibit 12-4. At what level would you tion the observation(s) you prepared in A.2. C Draft a memo to senior management in which you describe a consulting engagement that the in audit function could perform in response to the Provide one recommendation that address the the Case Overview for additional inition . After completing all of the necessary matin relating to the observation, select the rest it to be released to implementation Tracking CASE 1 AFR Manufacturing Company's senior management sequence(s), and cause(s). asked the internal audit function to conduct an opera- tional safety audit of the production facility's metal drill press unit. More specifically, the internal audit function Clearly explain your rationale, was asked to determine how well the metal drill press equipment and equipment operators comply with com- pany safety policies. operational safety audit results. Five downtime injuries of drill press operators occurred in the last six months. The total downtime for the five injuries was 37 hours. Management estimated that the CASE 2 drill press downtime, and the resultant decrease in TeamMate Practice Case Exercise 3: overall productivity, reduced revenue by approximately $265,000. In addition to the downtime injuries, two Project and the Audit Engagement drill press operators experienced detectible hearing loss Process during the six-month period. Using the audit file from the previous exercise, contiene with the audit engagement process. Your task is to The internal auditors learned that the company's safety with your audit team to prepare the audit program, policies include the following: form the procedures specified in the program, do Operators are required to wear safety glasses, ear any issues you find, and draft the audit repart. You have plugs, and protective gloves. been instructed to document procedures that will The drill presses are required to have a clear, plastic the objectives of your audit project. safety shield and a protected channel to safely feed the metal through the press This will include: The drill is operated by a knee switch. The operator Document the work associated with the procedure engages and disengages the drill by shifting his or her steps and adding workpapers to support your right knee conclusion. - Ensure that all procedures and wors The internal auditors found the equipment to be in rel off on as prepared and reviewed. atively poor condition with little evidence of any regular maintenance. Drill bits were not replaced as they became For one of the procedures performes dull, and broken bits often were used because new bits observation and ensure that all elem were not kept in supply. Two of the 10 drill press machines vation are clearly identified. were missing safety shields. Five of the 10 machine oper- ators were using the protective car plugs at the time the observation that was documented. auditors visited the plant and six were wearing safety contact to the recommendation as glasses. Four of the knee switches were found to be stick- ing occasionally in both the off and on positions. The vide a date of 12/31/20XX for the es auditors perceived a general sense of negligence--negli- tation date. The owner should be the gence by production management, drill press equipment of the business unit within the organ operators, and maintenance employees. A. Based on the scenario presented above: 1. Clearly state the internal audit engagement objective aus ther and pre ed imple possible on Refer