CASES 2. Prepare one or more well-written observations that include:condition CASE 1 AFR Manufacturing Company's sequence(s), and cause(s). senior management e internal audit function to conduct an opera- tional safety audit of the production facility's metal drill Refer to exhibit 12-4. At what level would tion the observation6) you prepared in Al Clearly explain your rationale. B. you press unit. More specifically, the internal audit function was asked to determine how well the metal drill press C. Draft a memo to senior management in whish equipment and equipment operators comply with pany safety policies. describe a consulting engagement that the ida audit function could perform in response to the operational safety audit results com- Five downtime injuries of drill press operators occurred in the last six months. The total downtime for the five ries was 37 hours. Management estimated that the CASE 2 drill press downtime, and the resultant decrease in TeamMate Practice Case Exercise 3 overall productivity, reduced revenue by approximately Project and the Audit Engagement Process Using the audit file from the previous exercise, coeti with the audit engagement process. Your task is to w In addition to the downtime injuries, two drill press operators experienced detectible hearing loss during the six-month period The internal auditors learned that the company's safety with your audit team to prepare the audit program policies include the following: Operators are required to wear safety glasses, ear plugs, and protective gloves. form the procedures specified in the program, docun any issues you find, and draft the audit report. You been instructed to document procedures that will t The drill presses are required to have a clear, plastic the objectives of your audit project safety shield and a protected channel to safely feed the metal through the press. This will include: Document the work associated with the procedun The drill is operated by a knee switch. The operator engages and disengages the drill by shifting his or her right knee. steps and adding workpapers to support your conclusion. Ensure that all procedures and workpapers are sig off on as prepared and reviewed. The internal auditors found the equipment to be in rel- atively poor condition with little evidence of any regular For one of the procedures performed, documet maintenance. Drill bits were not replaced as they became ervation and ensure that all elements of the dull, and broken bits often were used because new bits ob were not kept in supply. Two of the 10 drill press machines vation are clearly identified were missing safety shields. Five of the 10 machine oper- Provide one recommendation thatw ators were using the protective ear plugs auditors visited the plant and six were wearing safety contact to the recommendation as the ow glasses. ing occasionally in both the off and on positions. The tation date. The owner should be the responsible auditors perceived a general sense of negligence-negli- of the business unit within the organization. gence by production management, drill press equipment the Case Overview for additional informatio at the time the observation that was documented. Assign a busin Four of the knee switches were found to be stick- vide a date of 12/31/20Xx for the estimated Refi operators, and maintenance employees. A. Based on the scenario presented above: a After completing all of the necessary informatioas relating to the observation, select the releas 1. Clearly state the internal audit engagement objective. it to be released to Implementation Tracking CASES 2. Prepare one or more well-written observations that include:condition CASE 1 AFR Manufacturing Company's sequence(s), and cause(s). senior management e internal audit function to conduct an opera- tional safety audit of the production facility's metal drill Refer to exhibit 12-4. At what level would tion the observation6) you prepared in Al Clearly explain your rationale. B. you press unit. More specifically, the internal audit function was asked to determine how well the metal drill press C. Draft a memo to senior management in whish equipment and equipment operators comply with pany safety policies. describe a consulting engagement that the ida audit function could perform in response to the operational safety audit results com- Five downtime injuries of drill press operators occurred in the last six months. The total downtime for the five ries was 37 hours. Management estimated that the CASE 2 drill press downtime, and the resultant decrease in TeamMate Practice Case Exercise 3 overall productivity, reduced revenue by approximately Project and the Audit Engagement Process Using the audit file from the previous exercise, coeti with the audit engagement process. Your task is to w In addition to the downtime injuries, two drill press operators experienced detectible hearing loss during the six-month period The internal auditors learned that the company's safety with your audit team to prepare the audit program policies include the following: Operators are required to wear safety glasses, ear plugs, and protective gloves. form the procedures specified in the program, docun any issues you find, and draft the audit report. You been instructed to document procedures that will t The drill presses are required to have a clear, plastic the objectives of your audit project safety shield and a protected channel to safely feed the metal through the press. This will include: Document the work associated with the procedun The drill is operated by a knee switch. The operator engages and disengages the drill by shifting his or her right knee. steps and adding workpapers to support your conclusion. Ensure that all procedures and workpapers are sig off on as prepared and reviewed. The internal auditors found the equipment to be in rel- atively poor condition with little evidence of any regular For one of the procedures performed, documet maintenance. Drill bits were not replaced as they became ervation and ensure that all elements of the dull, and broken bits often were used because new bits ob were not kept in supply. Two of the 10 drill press machines vation are clearly identified were missing safety shields. Five of the 10 machine oper- Provide one recommendation thatw ators were using the protective ear plugs auditors visited the plant and six were wearing safety contact to the recommendation as the ow glasses. ing occasionally in both the off and on positions. The tation date. The owner should be the responsible auditors perceived a general sense of negligence-negli- of the business unit within the organization. gence by production management, drill press equipment the Case Overview for additional informatio at the time the observation that was documented. Assign a busin Four of the knee switches were found to be stick- vide a date of 12/31/20Xx for the estimated Refi operators, and maintenance employees. A. Based on the scenario presented above: a After completing all of the necessary informatioas relating to the observation, select the releas 1. Clearly state the internal audit engagement objective. it to be released to Implementation Tracking