Case Study $2(50$ Marks$)$

Boeing, one of the largest aerospace manufacturers globally, has faced significant

challenges in recent years, most notably with the $737$ MAX aircraft. Two fatal crashes

involving the $737$ MAX, in October $2018$ and March $2019,$ led to worldwide grounding of

the model and intense scrutiny over Boeing's design, certification processes, and corporate

governance. Subsequent investigations revealed issues related to software design and

testing, oversight in safety audits, and pressures within the certification process. These

challenges have raised questions about Boeing's risk management practices, internal audit

effectiveness, and the role of regulatory oversight.

Your Research Areas

$1.$ IT Auditing and Software Safety

Investigate the role IT auditing can play in ensuring the safety and reliability of critical

software systems in aerospace manufacturing. Consider how IT auditors could evaluate

software development processes, testing methodologies, and compliance with industry

standards.

$2.$ Risk Management Practices

Analyze Boeing's risk management practices leading up to and following the $737$ MAX

incidents. Focus on how risks associated with software and system design were identified,

assessed, and managed. Discuss the implications of risk management failures and how they

could be addressed through more robust IT auditing and risk assessment strategies.

$3.$ Corporate Governance and Internal Controls:

Examine Boeing's corporate governance structure and internal controls concerning the

design, development, and certification of aircraft. Explore the effectiveness of internal

audits in identifying and mitigating risks, including those related to software safety and

regulatory compliance.

$4.$ Regulatory Oversight and Compliance

Assess the impact of regulatory oversight on Boeing's operations, particularly in the

context of FAA $($Federal Aviation Administration$)$ certification processes. Investigate how

IT auditing can support compliance with aviation regulations and standards.

Your Tasks

$1.$ Research and Analysis: Conduct in$-$depth research on the Boeing $737$ MAX

incidents, focusing on the identified research areas. Utilize a range of sources,

including official investigation reports, academic journals, industry publications,

and news articles.

$2.$ Recommendations: Based on your analysis, propose recommendations for Boeing

to address the identified issues. Recommendations should include specific IT

auditing interventions, enhancements to risk management frameworks, and

improvements in corporate governance and internal controls.

$3.$ Reflection on IT Auditing's Role: Reflect on the broader role of IT auditing in

complex engineering and manufacturing environments. Discuss how IT auditors can

contribute to safety, reliability, and regulatory compliance in such contexts.

Present your findings and recommendations in a structured report, including an

introduction, methodology, analysis, recommendations, and conclusion.

Ensure all sources are appropriately cited, adhering to academic standards.