Memo to Management
You will submit a draft of your memos to upper management. First, you will prepare a memo to be reviewed by the chief financial officer (CFO) of your chosen company WALMART that summarizes the audit process. Then, you will assume the role of CFO of the company and prepare a memo to the Board of Directors as to what potential issues the external audit team might find and what the company’s response should be.
Prompt: Prepare memos with your recommendations to upper management using the findings from your audit report.
Specifically, the following critical elements must be addressed:
A. Prepare a memo to be reviewed by the chief financial officer (CFO) that summarizes the audit process.
1. Explain any sampling or other audit work that could be done, and if you would recommend the company pursue this additional work. Justify your response.
2. Make recommendations to the CFO on how to mitigate potential risk factors for major business transactions identified in the audit report.
B. Assume you are now the CFO. Prepare a memo to the Board of Directors as to what potential issues the external audit team might find and what the company’s response should be.
1. Evaluate the findings from the audit report. Be sure to view these findings from the CFO’s point of view.
2. Develop a strategy to mitigate risks identified in the audit report.
3. Describe how the company might implement the strategy based on the findings from the audit report.
Solution Preview
Memo to Management
From: AAF Auditors
Date: 27th March 2018
Subject: The Organization’s Audit
To: The Chief finance Officer Wal-Mart Company
The audit process allows an organization to develop a better understanding of their financial records. Wal-Mart is a currently the largest retail store in the world with an employee capacity of about two million individuals. The company has more than 9,000 stores with a strong presence in nearly fifteen countries internationally.
(590 words)