A large conglomerate is considering acquiring a medium-sized manufacturing company in a closely related industry. A major consideration by the management of the conglomerate in deciding whether to pursue the merger is the operational efficiency of the company. Management has decided to obtain a detailed report based on the intensive investigation of the operational efficiency of the sales department, production department, and research and development department.
REQUIRED
a. What professionals could the conglomerate hire to conduct the operational audit? What skills should be present in the audit team?
b. What major problems are the auditors likely to encounter in conducting the investigation and writing the report?