Reference no: EM132829479

Question - These two questions are on my midterm and I do not understand them and would like some help. This is for an Internal Auditing class.

1) The manager of IT requested your assistance in several parts of the project to develop a computerized customer relationship management system. Evaluate each of the following requests made by the manager of IT within the context of The IIA's Professional Practices Framework in terms of its potential impact on internal auditors' objectivity.

a. The request that the internal audit function make suggestions during the development of the system.

b. The request that internal audit review how the project is being managed.

c. The request that the internal audit help in developing new procedures.

d. The request that the internal audit function perform a post-completion audit within a year after the system has gone into production.

Note your response to one part could have an impact on your response to another part (i.e., consider the interrelationships).

2) Management is considering outsourcing manufacturing of a portable MRI machine to a vendor in Mexico. This product has only been on the market for two years. In that time, it has been a commercial success in North America and Asia. The company has a patent on this product and is currently the only company selling a portable MRI machine. The U.S. plant where the product is being made is not being closed. The Mexican company being considered does manufacturing for other large U.S. medical device companies such as Medtronic and Boston Scientific.

What are the most significant risks?

What key controls need to be in place?

What role can internal auditing play in assisting management both prior to signing the outsourcing contract and after the process has been outsourced?