The managing director of Trendy plc always watches a business affairs programme on television. The latest edition contained an item about management auditing. This prompted discussion at the next board meeting and it was agreed that the external auditor should be commissioned to conduct a review of the economy and effectiveness of the company’s marketing function.

The auditor requested a statement of the marketing function’s goals. The only response was

‘Selling, we suppose’.

(a) Suggest the difficulties which the auditor will face in dealing with the manager in charge of the marketing department, and in preparing a report to the directors because of the lack of a clear set of departmental objectives.

(b) Suggest how efficiency and effectiveness could be measured if the department's goals had been defined as ‘The maximisation of revenues by the promotion of the company’s products using the most cost-effective sales techniques’.