Name: Syed daniyal Shah
Reg id: Sp17-bba-b-062
Question Number1 :( 5 Marks) “
The process of performing an external audit must involve as many
managers and employees as possible.”Discuss advantages and
disadvantages of involving managers and employees in the process of
performing external audit of an organization.
Yes it is true that the process of an external audit involves the managers and employees to
perform different types of activities for performing external audit. Now I would like to firstly
discuss some of the advantages and disadvantages of performing external audit for the
organization by the process of involving managers and employees. So the advantages are for the
external audits are that the external audit improves and brushes up the internal systems or interior
systems of the organizations. And most importantly the external audit enhances the usability and
reliability of the organization’s controls. The external auditors do not just execute to focus or
spot the light on the numbers but they will also gain an expert skill in understanding the overall
business systems and their controls regarding their environmental surroundings.
The external audit provides and supplies the trustworthiness and credibility to our managers and
employees in the process of performing the external audit.
The external audit grants the shareholders the real owners of the organization the confidence the
self-belief to perform the external audit well-knowingly in an excellent way. And now I would
like to talk about some of the disadvantages of the external audit that disrupt and erode the
process of performing external audit for the managers and employees. The disadvantages are that
the external process is sometimes very much costly because the external auditor’s team is not
working well on the basis of good check and balance. That is why that could be also one of the
largest reason that the organizations are failed to operate successfully on longer terms.
The major problem of the external audit service is that they do not provides or offer’s the good
organized systematic way of internal recruiting that is grounded or viewed for the future of
senior managers. There are many chances of fraud that external auditors for their own will and
sake they usually create a mishap in checking in order to get their certain types of interests
involved in the process of performing the external audit.
Question Number2 :( 5 Marks) Technological advancements can
dramatically affect organizations’ product, services, markets,
suppliers, distributors, competitors, customers, manufacturing
