Mac Ltd is a large wholesale company and it sells its products through some retail outlets. The company plans to set an internal audit department.

Required:

a) Discuss the role of an internal audit department in a large business organization. (8 marks)

b) Both internal and external auditors share the same common objective. Explain. (8 marks)

c) Consider the factors when the external auditor decides on the extent to which he or she relies on the work of the internal auditor. (9 marks)