You are in the process of creating a new internal audit department for a large manufacturing organisation, Y Ltd, based in Greater Manchester. The company currently employs 1,200 people, 60% of whom are based on the factory floor and who work on a zero hours contract basis. They are about to invest a large sum of money into new finance, payroll and information systems.

A lot of the management team are still unconvinced by the need for an internal audit team. They see it as a waste of valuable resource that could be used to help grow the business. The Chief Financial Officer has asked you to put together a report to help them to understand the value of an internal audit team.

Requirement:

Write a report of a maximum of 1,500 words addressed to the Chief Financial Officer of the organisation. In your report you should:

1. Discuss the function and value of an internal audit team to an organisation. You should research and use examples of internal audit functions in other companies to support your points; and

(50 Marks)

2. Discuss the controls that you would expect to find in place for the payroll cycle of Y Ltd.

(50 Marks)