QLP plc is a UK based delivery company. The company has 26 depots located throughout the UK with a head office in Birmingham.
At a recent board meeting the company discussed a proposal to replace part of its fleet of delivery vans. The replacement will entail the acquisition 14 vehicles and the disposal of 16 others of varying age and condition.
Although such vehicle replacements have occurred in the past – the most recent being 18 months ago – problems have always arisen, in particular regarding the disposal of old vehicles.
Required
As the recently appointed chief internal auditor of QLP plc, the managing director of the company has asked you to prepare a report for the management board of the company describing the main stages and evaluating the key internal controls you would expect to find in the acquisition and disposal process.