2.Which of the following features of a large manufacturing company’s organization structure would be a control weakness?

AThe information systems department is headed by a vice president who reports directly to the president.

BThe chief financial officer is a vicepresident who reports to the chief executive office.

CThe audit committee of the board consists of the chief executive officer, the chief financial officer, and a major shareholder.

DThe controller and treasurer report to the chief financial officer.

AnoThis reporting relationship is a strength. It prevents the information systems operation from being dominated by a user.

BnoThis is a normal and appropriate reporting relationship.

CnoThe audit committee has a control function because of its oversight of internal as well as external auditing. It should be made up of directors who are independent of management. The authority and independence of the audit committee strengthen the position of internal auditing. The board should concur in the appointment or removal of the director of internal auditing, who should have direct, regular communication with the board( Standard 110).

DnoThis is a normal and appropriate reporting relationship.