Reference no: EM133654076

Question: You are the chief audit executive (CAE) in Lasting Impact Ltd, a large cosmetic company with various operations dealing with the development and manufacturing of multiple cosmetic lines. Lasting Impact Ltd has a head office and four branches across the country. Recently, the company has been doing poorly and management has been looking at more ways to improve its operations and has begun the process of unbundling its business (the company will be looking at offering certain cosmetic products separately that had previously been packaged together). Currently, the IAA consists of the chief audit executive (CAE), two managers, four senior internal auditors and six internal auditors. The internal audit staff are sent on audits to the branches. The internal audit staff are overworked and understaffed. The audit committee is contemplating changing the structure of the IAA resulting from this latest process. The chairman of the board approached you to advise whether outsourcing the IAA would be suitable for Lasting Impact Ltd.