Fast Move Ltd. is a listed company in the food processing industry. They have 10 factory sites and 2,500 workers. They have grown very rapidly in recent years under the direction of Siddhartha, who is a very dynamic person. He tries to operate on the lowest possible costs and sees internal control as himself and his factory managers.
The company has recently moved into the production of mass-produced South Indian foods and gambled that they will grab a large market share. They have an audit committee (not liked by Siddhartha) but no internal audit department.

Discussion

a. What advantages might accrue to the company if the company sets up an internal audit department?
b. How might the auditors approach the audit?
c. What specific duties are imposed on the auditor regarding internal control and internal audit?