Scenario 3 Activities (Advanced)

1.

Management has asked the internal audit function to work with

them to creat a list of the top potential acquisition candidates

that have online trading capabilities similar to E-Trade. You

should consider organizations with an international footprint that

would be good strategic matches for BUS. Specically outline the

characteristics you believe make them good acquisition targets for

BUS.

2.

Assuming management selects E-Trade as the best acquisition target,

complete the high-level due diligence checklist that you outlined in

scenario 2 based on what you can learn from researching E-Trade.

a.

Identify the ve most signicant areas of risk for the integration

of E-Trade's international online equity trading platform

into BUS's service offerings using the illustrative consulting

engagement risk model illustrated in exhibit CS3-3.

b.

Assume that the internal audit function has agreed to perform a

blended consulting engagement intended to advise management

on steps to enable a smooth integration of E-Trade's

international online equity trading platform into BUS's current

retail banking operations. In addition, the internal audit

function has been asked to conduct procedures to monitor and

report on the success of the integration. Outline the internal

audit resources that would be needed, including the number

of internal auditors and the type of experience that would be

required.

c.

What kind of communications should the internal audit

function provide to management regarding the consulting

engagement described in b. above? Be specic as to the type,

content, and timing of each planned communication.