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Instructions
- Sales Department Staffing
The Senior Internal Auditor of Book Worm has begun the review of the sales function. It is evident that over the last two years, the number of sales administration staff has been reduced by half from 4 clerks to 2, because of management policies to maintain profit by employee targets. In the management review that was undertaken at the time, it was felt that the 2 sales administration staff would be adequate.
Both were experienced direct sales staff. Although the intention to reduce staff had not included any of the experienced personnel, they both left 6 months ago for personal reasons and were replaced by two junior clerks with no practical experience in selling.
Required:
- Discuss the attitudes of the Sales Manager to the risks involved in the decision to reduce support staff.
- Identify the various risks that the internal audit staff needs to take into account during the review of the sales function and their expected levels.
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