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On the Audit of Technology Unlimited, a Leading Manufacturer of Computer

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Essay

On the audit of Technology Unlimited, a leading manufacturer of computer chips, the external audit staff discovers that the internal audit staff has performed extensive evaluation and testing on the control environment. What should the external auditors do to determine the extent to which they may use the work of the internal audit staff? Can the external audit staff rely on the internal audit staff for evaluating and testing the control environment?


Definitions:

Yield Management

A variable pricing strategy based on understanding, anticipating, and influencing consumer behavior to maximize revenue or profits.

Aggregate Plan

A process by which a company determines levels of capacity, production, subcontracting, inventory, stockouts, and pricing over a specified time period.

Graphical Method

A technique used in various disciplines to solve problems by visualizing data or equations through graphs.

Aggregate Planning

The process of developing, analyzing, and maintaining a preliminary, approximate schedule of the overall operations of an organization.

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