Plastic Designs Ltd manufactures and sells plastic storage boxes and containers. The Board of Directors recently decided to establish an in-house internal audit function. Lesedi Marang was appointed as the chief audit executive (CAE). The internal audit function is placed within the finance division and the CAE reports to the chief financial officer (CFO) for both functional and administrative duties. Two (2) employees were transferred from human resource: salaries division and one (1) from procurement division to work in the internal audit function as internal auditors. All three (3) employees have degrees in financial management and no internal auditing experience.

Plastic Designs Ltd manufactures and sells plastic storage boxes and containers. The Board of Directors recently decided to establish an in-house internal audit function. Lesedi Marang was appointed as the chief audit executive (CAE). The internal audit function is placed within the finance division and the CAE reports to the chief financial officer (CFO) for both functional and administrative duties. Two (2) employees were transferred from human resource: salaries division and one (1) from procurement division to work in the internal audit function as internal auditors. All three (3) employees have degrees in financial management and no internal auditing experience.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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