You have recently joined XYZ Company as an intern in the internal audit department. Your supervisor, the Chief Internal Auditor, has assigned you a specific project related to the company's internal controls and risk management processes. The project involves evaluating the effectiveness of the internal controls in one of the company's manufacturing plants located overseas.

Case Study Questions:

What is the role of internal auditing in an organization, and why is it important for companies like XYZ Company to have an internal audit function?

Identify and explain the key objectives of an internal audit engagement.

What are internal controls, and why are they crucial for organizations? Provide examples of internal controls that could be applicable to XYZ Company's manufacturing plant.

As part of your assignment, you need to assess the overall control environment in the selected manufacturing plant. What factors would you consider while evaluating the controlenvironment?

In your assessment of the control environment, you come across several control weaknesses. Discuss the potential impact of these weaknesses on the organization and suggest possible recommendations to address them.

XYZ Company has implemented an enterprise risk management $($ERM$)$ framework to manage its risks effectively. Describe the components of an ERM framework and explain how it can help the organization.

During your review of the manufacturing plant's processes, you identify a significant risk related to inventory management. Discuss the potential risks associated with poor inventory management and suggest control measures to mitigate those risks.

Explain the concept of segregation of duties and its importance in internal controls. Identify key functions within the manufacturing plant that should be segregated to ensure proper controls are in place.

As part of your project, you need to conduct interviews with key personnel in the manufacturing plant. Outline the types of questions you would ask to gather information about the control environment, risk management processes, and adherence to company policies.

After completing your assessment, you are required to prepare a comprehensive report summarizing your findings and recommendations. Discuss the essential elements that should be included in an internal audit report, and explain how your report can help management and stakeholders.