Question Description
1-The improper payments made by APC occurred during the time frame that Andrea Jung served as Avon's CEO. Was she "responsible" for those payments even if she was unaware of them? Why or why not?
2-Identify the role and responsibilities that an internal audit staff typically assumes in a company's internal control system.
3-The IMA Statement of Ethical Professional Practice identifies four ethical standards, three of which are competence, confidentiality, and integrity (see "Ethics Center" on IMA website). Relying on those three ethical standards, evaluate the conduct of Avon's internal audit staff during the company's initial investigation of the questionable payments made by APC.
4-Do you agree with Avon's corporate legal staff that the potential FCPA violations were a legal issue and not an internal audit issue? Explain.
5-The COSO internal control framework identifies five components of an entity's internal control. Which, if any, of those five components of Avon's internal control were flawed? Explain. If there were multiple flaws in Avon's internal control, identify which one you believe was most serious and defend your choice.
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