You Are the Auditor of a Large Retailer

question 4

Essay

You are the auditor of a large retailer. Describe how the use of the internal audit department might affect your engagement planning.

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Definitions:

Franchise

When one business owner sells to another the right to operate the same business in another location, using its name and operating methods.

Business Owner

A business owner is an individual who owns and oversees the operation of a company, making key decisions and assuming the risks associated with the business.

Original Owner

The individual or entity that first held ownership or possession of an asset, property, or business before any transfers or sales.

Venture

A new business endeavor undertaken with risk in hopes of achieving financial gain or other benefits.