In an Operational Auditing, given the issues stated below:

What would be the Audit Focus Area of an Internal Auditors when creating an Audit plan?

What would be the General Audit Objective of the Audit Plan?

Dear CAE,

Our business operation is currently slowing down as we don't have enough lessee which will keep the business running in profit, even though our expense is already cut. Thus, I would like you to perform an operation audit and review the effectiveness and efficiency of our current process in order to keep up with the current circumstances.

Provided below are the current issues we are facing, the background of our company and the current financial statement.

Issues:

1. Airbnb or other rental app impact on rentals.

2. To purchase of new property for rent.

3. Compliancy to various tax rules and regulations. - One of the implementing rules and regulation of the TRAIN Law is VAT exemption of condominium dues.

4. The rental contracts are undeveloped.

5. The contracts, and billings are usually sent out late.

6. The utility man serves as the collector of monthly rent as well.

7. The payment for the interest on the advances from parent company is due on 2022. 8. Some units for rents are dilapidated

Background of HOMETOWN CHA-CHA Organization

Company Name: Home Town Cha-cha

Complete Principal Office Address: 1246 Seaside Building, Ragay, Camarines Sur, Philippines Date Registered: May 05, 1981

Fiscal Year End: December 31

Company Type: Stock Corporation

Primary Purpose/Activity/ Industry Presently Engaged In: To engage in real estate business or otherwise deal in real estate and its development, subdivisions, leases, and rentals, personal property, rights, and interest therein, and related assets and/or activities as principal or in any representative capacity or agency (real estate developer and dealer).

Types of Shares: Common

Number of Shares: 500,000

Par/Stated Value: 100

Amount (PHP): 50,000,000.00

Board of Directors

Name and Inc. Board Sex Stockholder Officer Nationality Lee Min Hoo N Chairman M Y Chairman/President Soo Ji Sub N Member M Y N/A Shin Min Ah N Member F Y N/A Kim Seon-Ho N Member M Y N/A Son Ye Jin N Member F Y Treasurer Kim Rae Won N N M N Corporate Secretary Hyeri N N F N Assistant Corporate SecretarySTATEMENT OF FINANCIAL POSITION as of December 31, 2020 ASSETS CURRENT ASSETS Cash Php 17,238,515 Trade and other receivables - net 370,484 Other current assets 6,179,734 Total Current Assets 23,788,733 NON-CURRENT ASSETSTOTAL COMPREHENSIVE INCOME Php 9,652,648Investment properties 908,230,464 Other non-current assets 8,747,322 Total Non-Current Assets 916,977,786 TOTAL ASSETS 940,766,519 LIABILITIES AND EQUITIES CURRENT LIABILITIES Trade and other payables 8,777,644 Advances from parent company 297,594,250 Total Liabilities 306,371,894 EQUITY Capital stock 50,000,000 Retained earnings 584,394,625 Total Equity 634,394,625 TOTAL LIABILITIES AND EQUITY 940,766,519 STATEMENT OF COMPREHENSIVE INCOME REVENUE Rent Php 17,302,023 Gain on revaluation 613,405 Other income 857,623 18,773,051 COST AND EXPENSES General and administrative 8,048,709 Depreciation 538,275 8,586,984 PROFIT BEFORE INCOME TAX 10,186,067 TAX EXPENSE 533,419 NET PROFIT 9,652,648 OTHER COMPREHENSIVE INCOME