ASAPP!!!!!!!

BAIA Inc., is a makeup manufacturer that has gained a big market share on the cosmetics industry due to their intensive publicity and promotion of their light reflecting products. They have positioned themselves as a company that sells high-end products to the global customer.

One of the main ingredients used to give a glitter effect in their light reflecting products is mica, which is a mineral that is easily pulverized into dust and is commonly found in India.

Recently, many investigations have discovered the sustainability issues of mica. As a result, the top management of BAIA Inc. has decided to engage in a sustainability project to position itself as a sustainable brand.

The manufacturing process contains five main stages which are: the acceptance of raw materials and packaging, contamination detection, mixing and filling, appearance testing and inspection of products, and finally, shipment to high-end stores.

The company operates globally, therefore they are very picky when choosing the ingredients for their products. Although the end-product is a glamorous product that has passed many different quality tests, the manufacturing process is the opposite of that, the employees are faced with many hazards in the workplace. The employee representative has reported their health and safety complaints to CEO and the Board of Directors.

After careful consideration of the complaints, the Board of Directors decide to structure an Audit Committee and an internal audit department and hired a CAE in order to add value and improve an organizations operations.

Question C:

How should the internal audit department be structured in the organization? To which level should CAE report? Please briefly explain