The ABC Public Company Limited has grown rapidly in the last five years. I fact, recent sales
Question:
The ABC Public Company Limited has grown rapidly in the last five years. I fact, recent sales figures showed the company to be the fifth-largest personal computer producer in the country. Last year, the company purchased a chain of retail electronics stores through which to market ABC products and other household electronic appliances, games, etc. The controller if the company has suggested the establishment if an internal auditing department, and an executive committee is meeting to determine the best way to implement the proposal. The company's president, the chief executive of officer (CFO), the vice president of production, the controller, and the vice president of finance are discussing the most appropriate administrative level to which the new department director should report. Suggestions have included (1) the CEO, (2) the vice president of financial, (3) the controller, and (4) the audit committee of the board of directors.
Required:
1) What advantages and/or disadvantages would there be in placing the director of internal auditing under any one of the four proposed level of management? Discuss each of the four proposal.
2) Of these four suggestions, which one do you think would be the best selection? Why?
Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley