a) Nana Adom Company Ltd, end its financial year on 31st December, which is traditionally a busy time for Samyantwi and Associates. Nana Adom Company Ltd., currently has an internal audit department of five employees but they have struggled to undertake the variety and extent of work required by the company, hence Nana Adom Company Ltd. is considering whether to recruit to expand the department or to outsource the internal audit department. If outsourced, Nana Adom Company Ltd. would require a team to undertake monthly visits to test controls at the various shops across the country, and to perform ad hoc operational reviews at shops and head office. Nana Adom Company Ltd is considering using Samyantwi and Associates to provide the internal audit services as well as remain as external auditors.

Required:

Discuss any SIX advantages and FOUR disadvantages to both Nana Adom Company Ltd. and Samyantwi

and Associates for outsourcing the internal audit department functions. (5 marks)