Yummy Co is specialist in producing yogurt drink. It operates in many countries around the world and has expanded steadily from its base in Australia. The company already operated in the market for 15 years. The company experience declining in company performance after Covid-19 attack. The main reason for the company is not able to meet the Board expectation is because their weak internal control system. Mr. Richard, the company CEO blame the internal audit department which cause the company failure. Recently, the company also receive the lawsuit when they fail to comply with the environmental act during their manufacturing process.

The CEO think that internal audit department is not fully utilize since at present their only role is to perform regular inventory counts at the stores. He claims that it is wasteful to pay internal auditor if they do not able to do the job of operational audit and compliance audit appropriately. Due to the lawsuit, the company need to pay very high penalties amount and affect their cash flow performance.

Task assigned:

You are requiring to work in a group of 3-4 students and critically evaluate and discuss additional assignments that the internal audit department of Yummy Co could be asked to perform by those charged with governance. Support your discussion with prove from past studies.