Audit

A. Prepare a memo to be reviewed by the chief financial officer (CFO) that summarizes the audit process.
1. Explain any sampling or other audit work that could be done, and if you would recommend the company (TARGET) pursue this additional work. Justify
your response.
2. Make recommendations to the CFO of TARGET on how to mitigate potential risk factors for major business transactions identified in the audit report.
B. Assume you are now the CFO of TARGET. Prepare a memo to the Board of Directors as to what potential issues the external audit team might find and what the companys response should be.
1. Evaluate the findings from the audit report. Be sure to view these findings from the CFOs point of view.
2. Develop a strategy to mitigate risks identified in the audit report.
3. Describe how TARGET might implement the strategy based on the findings from the audit report.

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