1) State the evidence that LDC is a fast-growing startup. Comment on the reasons why the critical support functions of accounting and internal audit are busy and under stress. Is this typical in a start-up?
2) The external auditor has noticed the accounting department is under stress and has raised the issue with the audit committee chair. Given his oversight responsibilities, should the audit committee chair be more proactive?
3) What additional questions should the audit committee chair ask of the external auditor? Of internal audit? Of the CFO about his finance team?