| Team C |
To: WorldCom Executives
From: Shernelle Rooplal, Wilder Pascual-Torress, Benson Paul, Monika Wojnakowska, Rosa Varrillas
Date: June 13, 2011
Re: Audit Decision
Dear Worldcom Executives,
We as your audit team have decided to conduct a survey in several areas in particular within your company.
1. Corporate culture:
a. We would like to gather more information in regards to communication between departments.
b. We would like to see documentation on training and the decision making process within the company.
2. Expense to Revenue (E/R) Ratio:
c. We would like to look at capital expenditures, statement of cash flow and profits.
3. Board of Directors:
d. What are the functions of the board?
e. The decision making process and approval process.
During the survey we will be requesting to look at paperwork and documents as well as interviewing employees involved in the day to day operations of the departments.
Field work phase
We used following techniques in our field work:
-Interview with Bert Roberts who was the chairman of the board and John Sidgmore, vice chairman of the board (see exhibit A)
-Interview with Max Bobbit, the chairman of the Audit Committee
-Review of minutes of Board meetings
-Evaluation of the functions of the Board based on the review of the organizational chart
-Review of company’s procedures manual on compliance
-Accounting department organization structure and related functional job descriptions including responsibility and authority relationships
Review Work Steps | Budgeted Hours | Personnel Assigned |
1. Goals and Objectives a. Review plans and goals for the year b. Review internal materials related to employee growth | 6 | Shernelle |
2. Organization Chart and Procedures Manual c. Obtain a copy of organization chart and analyze d. Obtain a copy of Standard Operating Procedures and review | 6 | Wilder |