Memo to Management

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You will submit a draft of your memos to upper management. First, you will prepare a memo to be reviewed by the chief financial officer (CFO) of your chosen company WALMART that summarizes the audit process. Then, you will assume the role of CFO of the company and prepare a memo to the Board of Directors as to what potential issues the external audit team might find and what the company’s response should be.

Prompt: Prepare memos with your recommendations to upper management using the findings from your audit report.

Specifically, the following critical elements must be addressed:

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 pursue this additional work. Justify your response.

2. Make recommendations to the CFO on how to mitigate potential risk factors for major business transactions identified in the audit report.

B. Assume you are now the CFO. Prepare a memo to the Board of Directors as to what potential issues the external audit team might find and what the company’s response should be.

1. Evaluate the findings from the audit report. Be sure to view these findings from the CFO’s point of view.

2. Develop a strategy to mitigate risks identified in the audit report.

3. Describe how the company might implement the strategy based on the findings from the audit report.

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