CASES 2. Prepare one or more well-written i observations that inclade: condition, eriteris e CASE AFR Manufacturing Company's senior management asked the internal audit function to conduet an opera tional safety audit of the production facility's metal drill press unit. More specifically, the internal audit function was asked to determine bow well the metal drill press c. Draft a memo to senior management in which equipment and equipment operators comply with com pany safety policies. sequencels), and cause(s). Refer to exhibit 12-4. At what kevel tion the observation's) you prepared in A.3. Clearly explain your rationale. describe a consulting engagement that the interna audit function could perform in response to the operational safety audit results. Five downtime injuries of drill press operators oceu in the last six months. The total downtime for the five injuries was 37 hours. Management estimated that the CASE 2 drill press downtime, and the resultant decrease in TeamMate Practice Case Exercise t. overall prodactivity, reduced revenue by approximately $265,000. In addition to the downtime injuries, two Project an drill press operators experienced detectible hearing loss Proces during the six-month period. d the Audit Engagement Using the audit file from the previous exercise, contine with the audit engagement process. Your task is to work with your audit team to prepare the audit form the procedures specified in the program, document any issues you find, and draft the audit report. You have been instructed to document procedures that will meet The internal auditors learned that the company's safety policies include the following program, pes Operators are required to wear safety glasses, ear plugs, and protective gloves. The drill presses are required to harve a clear, pla safety shield and a protected channel to safely feed the metal through the press the o jectives ofyour audit project. This will inclade: " Document the work associated with the procedure steps and adding workpapers to support your conclusion. s The drill is operated by a knee switch. The operator engages and disengages the drill by shifting his or her right knee. a Ensure that all procedures and workpapers are signed The internal auditors found the equipment to be in rel- off on as prepared and reviewed. atively poor condition with little evidence of any regularFor one of the procedures performed, document an maintenance. Drill bits were not replaced as they became observation and ensure that all elements of the obser dull, and broken bits often were used because new bits were not kept in supply. Two of the 10 drill press machines vation are clearly identified. ds. Five of the 10 machine oper Provide one recommendation that would address the ators were using the protective ear plugs at the time the observation that was auditors visited the plant and six were wearing safety Contact to the recommendation as glasses. Four of the knee switches were found to be stick vide a date of 12/31/20xx for the es ing ococasionally in both the off and on positions. The tation date. The owner sbould be the auditors perceived a general sense of negligence-negli of the business unit within the organization. Refr t gence by production management, drill press equipment the Case Overview for additional information operators, and maintenance employees. A. documented. Assign a Based on the scenario presented above: After completing all of the necessary information relating to the observation, select the release button L Clearly state the internal audit engagement objectiveit to be released to Implementation Tracking 12-18 INTERNAL Au0mNG ASSURANCE & ADVSORY services CASES 2. Prepare one or more well-written i observations that inclade: condition, eriteris e CASE AFR Manufacturing Company's senior management asked the internal audit function to conduet an opera tional safety audit of the production facility's metal drill press unit. More specifically, the internal audit function was asked to determine bow well the metal drill press c. Draft a memo to senior management in which equipment and equipment operators comply with com pany safety policies. sequencels), and cause(s). Refer to exhibit 12-4. At what kevel tion the observation's) you prepared in A.3. Clearly explain your rationale. describe a consulting engagement that the interna audit function could perform in response to the operational safety audit results. Five downtime injuries of drill press operators oceu in the last six months. The total downtime for the five injuries was 37 hours. Management estimated that the CASE 2 drill press downtime, and the resultant decrease in TeamMate Practice Case Exercise t. overall prodactivity, reduced revenue by approximately $265,000. In addition to the downtime injuries, two Project an drill press operators experienced detectible hearing loss Proces during the six-month period. d the Audit Engagement Using the audit file from the previous exercise, contine with the audit engagement process. Your task is to work with your audit team to prepare the audit form the procedures specified in the program, document any issues you find, and draft the audit report. You have been instructed to document procedures that will meet The internal auditors learned that the company's safety policies include the following program, pes Operators are required to wear safety glasses, ear plugs, and protective gloves. The drill presses are required to harve a clear, pla safety shield and a protected channel to safely feed the metal through the press the o jectives ofyour audit project. This will inclade: " Document the work associated with the procedure steps and adding workpapers to support your conclusion. s The drill is operated by a knee switch. The operator engages and disengages the drill by shifting his or her right knee. a Ensure that all procedures and workpapers are signed The internal auditors found the equipment to be in rel- off on as prepared and reviewed. atively poor condition with little evidence of any regularFor one of the procedures performed, document an maintenance. Drill bits were not replaced as they became observation and ensure that all elements of the obser dull, and broken bits often were used because new bits were not kept in supply. Two of the 10 drill press machines vation are clearly identified. ds. Five of the 10 machine oper Provide one recommendation that would address the ators were using the protective ear plugs at the time the observation that was auditors visited the plant and six were wearing safety Contact to the recommendation as glasses. Four of the knee switches were found to be stick vide a date of 12/31/20xx for the es ing ococasionally in both the off and on positions. The tation date. The owner sbould be the auditors perceived a general sense of negligence-negli of the business unit within the organization. Refr t gence by production management, drill press equipment the Case Overview for additional information operators, and maintenance employees. A. documented. Assign a Based on the scenario presented above: After completing all of the necessary information relating to the observation, select the release button L Clearly state the internal audit engagement objectiveit to be released to Implementation Tracking 12-18 INTERNAL Au0mNG ASSURANCE & ADVSORY services