Question One $(27$ Marks$)$

Case Study Scenarlo: Innova Inc.

Innova inc, a medium$-$sized manufacturing company, is experiencing rapid growth and expansion into new markets. The complexify of operations and the demand for efficient control and management have grown as a result of this expansion. The business is getting ready for an external audit as required by its yearly compliance standards. To guarantee alignment with its changing business needs, the company is thinking about improving its internal audit function in addition to the external audit.

Required:

$1\mathrm{.}1$ How would an external auditor approach auditing Innova Inc. considering its rapid growth and expansion? $(4$ Marks$)$

$1\mathrm{.}2$ How does the role of an extemal auditor differ from other types of audfiors in this scenario?

$(3$ Marks$)$

$1\mathrm{.}3$ What steps should Innova Inc. take to enhance its internal audit function and how can internal auditors contribute to improving the effectiveness and efficiency of control and management within innova inc. $?(6$ Marks$)$

$1\mathrm{.}4$ Discuss the importance of independence for internal auditors within the context of Innova Inc.$\text{'}$s operations. $(2$ Marks$)$

$1\mathrm{.}5$ Considering innova Inc. $\text{'}$s expansion into new markets, what potential risks might arise that forensic auditors should be prepared to address and what role could forensic auditors play in helping innowa inc, mitigate risks associated with its growth and expansion? $(6$ Marks$)$

$1\mathrm{.}6$ How might the engagement of a special purpose auditor benefit innova Inc: in achieving is business objectives? $(6$ Marks$)$