Wk 6 Walmart Audit (Recommendations & Reporting Phase)

PLEASE INCLUDE A TABLE OF CONTENTS

MUST PROVIDE 4 PAGES 

Recommendations and Reporting Phase: Now that the team has gathered its data, it is time to analyze the information and also make recommendations to management based upon what you found. What recommendations do you have concerning corporate governance, segregation of duties, and working with the external auditor? Remember the Three E’s of an operational audit (economy, efficiency, and effectiveness) – what would you recommend to the management of the company to increase the economy, efficiency, or effectiveness of the functions or areas that your team investigated? 

To assist you with the analysis and getting some ideas flowing, consider the following topics for discussion within your group:

1. Corporate Culture
   • Does the culture of a firm get reflected in its appetite for risk or vice versa?
   • Is there an audit plan to account for culture; is culture a control or lack thereof?
   • Is it healthy to have aggressive growth targets?
   • How healthy do you think the corporate culture of your company is after reading the annual report and articles?
   • Can you tell what the “tone at the top” is in your company?
2. Expense to Revenue
   • Is the review of expense ratios to revenue growth a financial audit or an operational audit?
   • Should competitor performance or industry trends be a factor for an operational auditor?
   • Is your company on par with, ahead of, or lagging behind its competition?
3. The Accounting Department/Internal Audit/External Audit
   • Discuss the pros and cons of the relationship and competency of these functions.
   • Does it seem like these functions are segregated enough and independent, or does it look like improvements could be made?
4. Senior Management
   • Is the competency of senior management an operational audit opportunity?
   • Is segregation of duties an operational audit opportunity?
5. Audit Independence and Relationship with External AuditorYou will want to answer these questions as you analyze the information that you are able to find about your company, and then integrate them into your document. Use the Internet, textbooks from other courses you have taken, or other references, but be sure to reference them either within the document or at the end. Keep in mind such things as benchmarking and risk management, and do your research.