Richard Folger, CEO of Folger Group (FG), is very annoyed about a drop of more than20% in his business's market share, owing to a decrease in the quality of its products inthe second half of the fiscal year. Confused about why an internal audit did not detectthe sudden drop in quality, he met with his chief audit executive (CAE). The CAEexplained that the internal audit department is staffed according to the responsibilitiesidentified in his mandate. First, the department should audit the different functions of theorganization, and it has been agreed that these audits would be conducted on anannual and rotating basis and limited to the first half of the year. Second, in the secondhalf of the year, the department helps prepare for the year-end external audit andcompletes different filings required by the federal and provincial governments