Group Research Assignment
Company FKC is a large manufacturing organization that has led the market for five years,
with an employee base of 300,000 employees country-wide. The executive management
team of FKC has decided to list the company on the Johannesburg Stock Exchange (JSE)
as a result of its success.
The management team of FKC has always been focused on making money and has never
really implemented any formal structures in the organization. They realize that in order to list
their organization on the JSE, they will have to implement formal structures to ensure they
comply with all the required laws.
Management of FKC understands that internal auditors can assist them in achieving their
objectives and specifically seeks advice on the following matters:
a) They would like to know whether to implement an in-house internal audit function or
whether to fully outsource their internal audit function.
b) They also need to know whether or not the internal audit function has a role to play in
assisting them with their risk management responsibilities.
c) They have heard of the term “enterprise risk management” but do not understand what it
involves. The organization faces a number of business and information technology risks
and they are unsure of how to manage them completely.
d) They also need to know who is responsible for the management of risk in their
organization and whether there are any risk management processes that can be followed
in identifying risks for the organization.
e) They have heard of the term “control self-assessment” but do not understand how it can
benefit their organization’s risk management strategy.
f)
They have also heard of corporate governance and the KING III report. They are not
sure what good corporate governance entails and also need to know if they will have to
adhere to the guidelines as set out by the KING III report once they are listed on the
JSE.
You and your specialized team of certified internal auditors have been tasked to provide
FKC management with advice on each of the above issues.
YOU ARE REQUIRED TO:
1. Conduct a research assignment in relation to the above areas identified by the
management team of FKC.
Your research assignment should meet all the professional criteria of an academic
research paper. Note: References to Wikipedia are not accredited literature. You
should, at a minimum, cover the following in your research document:
Explain your advice given for each of the areas identified with reference to accredited
academic literature.
(150 points)
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Total: 150 points
Your research assignment should be at least 25 pages and no more than 30 pages,
including your list of references. Remember to submit your typed assignments in a
professional manner, including:
-
A cover page (include the course code, your group number and the names and
student numbers of the respective group)
Book format (ring-bound or stapled)
A table of contents
Use of headings
No spelling mistakes
Font size and format should be Arial, 11 point
In-text references (citations) using Harvard method
A list of references using Harvard method
The group leaders will be provided with a scoring sheet, which can be used as a benchmark
for completing the assignment.
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