Enclosure Products, a large, nationwide organization,manufactures and markets several lines of equipment used inpackaging. Product reliability and customer service are consideredcritical to the companyâs success. The Customer Service Departmentis charged with the following responsibilities:
-Providing prospective customers with product information.
-Monitoring the adequacy of spare parts availability.
-Providing information to customers about equipment operation andmaintenance.
-Preparing and providing customers training courses.
-Providing backup service and support in the event of criticalbreakdowns.
-Handling warranty claims.
-Maintaining general liaison with customers.
The company recently computerized its Customer Service Departmentto improve operational efficiency and customer satisfaction. Thischange represents a sizable investment by Enclosure Products. Thenew system includes management information to monitor performancein the areas listed above. The Audit Committee of EnclosureProductsâ board of directors has requested that the internal AuditDepartment perform an operational audit of the Customer ServiceDepartment. The Audit Committee has asked that the audit objectivesinclude evaluation of the following:
-Security of assets, including computer information.
-Compliance with applicable laws and company policies.
-Reliability of financial records.
-Effectiveness of performing assigned responsibilities.
-Determination of the value of the spare parts inventory.
Required
a. Explain why each of the five audit objectives suggested by theAudit Committee is, or is not, appropriate for an operational auditof Enclosure Productsâ Customers Service Department.
b. Outline the basic procedures for performing an operationalaudit.
ICMA (adapted)8
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