As an internal auditor at Martin's Manufacturing, you have been tasked with preparing internal control testing plans for this year's business operations audit over the conversion processes. You have been given a list of controls from the prior year's workpapers. Unfortunately, last year's internal audit senior failed to include the control owners or the area of the conversion process for each, and the senior is no longer with Martin's Manufacturing. In preparation for this year's audit, complete the following two questions using the list of internal controls in the table below. A. Identify the business stakeholders your team needs to meet with during the engagement by assigning an employee job title to the Control Owner column for each internal control. B. To assist your team in planning the scope of the engagement, identify in which of the following areas of the conversion process the internal control is found: i. ii. iii. iv. V. vi. vii. Product development Production planning and scheduling Manufacturing operations Quality management Inventory management Supply chain management Product cost management 1. P N 2. 3. 4. 5. 6. 7. 8. 9. 10. Internal Control The system analyzes standard and actual manufacturing costs and variances. An annual review of employee performance is performed. Access to the warehouse is limited to authorized employees only. Inventory counts are completed on a monthly basis. The system creates purchase requisitions and orders electronically based on customer demand. Production decisions made by management must be based on sales forecasting, product profitability analysis, and inventory management. The inventory records must be periodically reconciled to the control accounts in the general ledger and to the physical inventory on hand. Documented policies and procedures for product safety and quality include roles and responsibilities of inspectors and the handling of exceptions. Product costs are standardized and reviewed and revised regularly, in accordance with documented policies and procedures. Policies and procedures related to the review, change, and authorization of existing bills of materials, operations lists, and production schedules are clearly documented. Control Owner(A) Area(B)