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Westgate Company Limited (WCL) is a Canadian manufacturer of public transportation equipment. Sales for the year ended March 31, 2016, amounted to $930 million, on which the company realized a net profit after taxes of $150 million. The company has experienced considerable growth in the last three years, mainly through acquisitions and the development of new product lines.
WCL has decided on the following corporate objectives for 2017:
The president of WCL, Mitch Wright, believes that strategic planning is the key to survival. He believes that without proper strategic planning, the company will be rapidly outpaced by its competitors. Consequently, he requested that the internal audit department review WCL's strategic planning systems and practices, focusing on the process for the preparation of the five-year corporate plan, which was completed in October 2015.
Problem 1: What are the key areas to review in the strategic planning activity?
Problem 2: What are the high-level general criteria that the internal auditor can use for the audit?
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