answer case 1

in our organizational reporting structure until we through the fiscal year - end closing and reporting cycle . In preparation for the upcoming audit committee meet ing , Pat contemplated the CFO's comments and reflected If we keep our heads down and work hard , we shond te on The 11 As professional standards as they relate to the able to get through this year-end okay." CASE 1 Pat Goodly accepted the CAE position at a large, global organization with a well-established internal audit func- tion. The organization is admired as an industry leader and as having very strong corporate governance prac- tices. The organization's board is predominantly made up of outside, independent directors. The audit committee is comprised of outside, independent directors, all of whom are qualified. The chair of the audit committee is desig- nated as the audit committee's financial expert, The organization's fiscal year-end is approaching: only a little over a month away. After a brief two months in the new position. Pat is preparing for the upcoming audit committee meeting. This typically is the meeting at which next year's internal audit plan and budget would be presented for approval by the audit committee, as well as any necessary fiscal year-end reporting. CAE's reporting responsibilities to management and the board. Put yourself in Pat's position as the newly hired CAE and consider the following: A. How should Pat proceed with the audit committee chair? What obligations does Pat have, if any, to the audit committee chair? As the CAE, what are Pat's role and responsibilities with respect to the audit committee and the audit committee chair? B. Discuss the key issues that must be understood and addressed and with whom) to properly discharge any reporting responsibilities noted. Recently, Pat received a "welcome" call from the audit committee chair, indicating "full" support for Pat and the internal audit function. The audit committee chair expressed an interest in meeting Pat and gaining an understanding of the vision and direction Pat has for the internal audit function going forward. The audit com- mittee chair indicated that periodic communications between them were important and would allow for open and candid dialog in the future. CASE 2 TeamMate Practice Case Exercise 3: Team Schedule and TeamTEC CPI's internal audit function uses TeamSchedule and TeamTEC (Time and Expense Capture) to efficiently manage its time and resources. TeamSchedule enables internal audit management to schedule projects and assign to scheduled engagements. TeamTEC facilitates thing, tracking, and reporting of time and expengements, administrative activities, and none is such as vacations. TeamSched- ule and be used together by internal audit manager stor and report on scheduled hours versus worked throughout the year as the annual interplan is completed. Pat was hired by, and currently reports to the chief financial officer (CFO). Historically, the audit commit- tee meeting agenda, and related topic selections for such, have been performed by the CFO. The CFO also has pre- sided over the meetings in the past. Senior management, including the CEO and the CFO, expressed support for the internal audit function and Pat's vision for the function both during the recruiting process and subsequent to Pat's joining the organization. However, the CFO firmly stated in a recent staff meeting, "I know everyone is very busy and things are going to get even more hectic with year-end upon us. I think it is in everyone's best interest not to make any radical changes Complete Exercise 3: TeamSchedule and Team TEC in the TeamMate Practice Case Workbook, which is included on the accompanying website