The organization chart on the following page depicts the decentralized structure of Baxter’s, Inc., a medium-sized chain of large department stores located in six cities in the western part of the United States. The director of internal auditing has decided upon the following key factors to guide the selection of auditees for the 1985-86 budget year: location and transaction cycles.

Required:

a. Study the organization chart and state why you think the audit director would choose location and transaction cycles as selection factors.

b. Name at least one other strategy that you think might be appropriate in this case for identifying potential auditees. Defend your strategy(ies).

Transcribed Image Text:

Vice President Facilities Management Vice President Marketing Board of Directors Chief Executive Officer Vice President Financial Management Vice President Store Operations Vice President Accounting and Information Systems Each of Baxter's six stores has an organisational structure similar to this, and each store manager reports to the vice president for the store operations at headquarters. Baxter's Store Manager Store Controller Store Advertising Promotions Manager Store Credit and Collections Manager Store Sales Manager Heid Cashier