Bigdeal Corporation manufactures paper and paper products and is trying to decide whether to purchase and merge

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Bigdeal Corporation manufactures paper and paper products and is trying to decide whether to purchase and merge Smalltek Company. Smalltek has developed a process for manufacturing boxes that can replace other containers that use fluorocarbons for expelling a liquid product. The price may be as high as $45 million. Bigdeal prefers to buy Smalltek and integrate its products, while leaving the Smalltek management in charge of day-to-day operations. A major consideration is the efficiency and effectiveness of the Smalltek management. Bigdeal wants to obtain a report on the operational efficiency and effectiveness of the Smalltek sales, production, and research and development departments.

Required:
Who can Bigdeal engage to produce this operational audit report? Several possibilities exist. Are there any particular advantages or disadvantages in choosing among them?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For  book-img-for-question

Auditing An International Approach

ISBN: 978-0071051415

6th edition

Authors: Wally J. Smieliauskas, Kathryn Bewley

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