Garret Car Rentals Audit Report

Objective
Our objective is to perform an efficient and informative audit of Garrett Car Rentals, and identify areas of weak control that need to be improved.

Recommendations * Use the COSO audit approach: * The condition is that there has been a tremendous increase in vehicle count, maintenance and repairs have increased in the past three years, and that inventory and inspections have increased additionally in the Wilsonville factory, while all other factors are decreasing. The inspections in the local service providers is decreasing while inspections in Wilsonville plant is increasing with greater inventory in the United States. * The criteria is that there should be more diversity in the locations or repairs and inspections, and not just the Wilsonville plant dominating all areas. The expenses of maintenance and repairs should not be so costly due to the fact that only minor repairs should be taking place, and private sales of vehicles should not be occurring because it is against company policy. * The cause is that there is a lack of segregation of duties, not reliable of financial statements, and the method of disposition of vehicles is unreliable. * The effect is that the company is not being protected, possible fraudulent activities could occur, and the expenses are increasing dramatically which leads to loss of revenue for the Wilsonville plant in the long run. One location (Wilsonville) out of all the ninety-seven locations is negatively affecting the company as a whole. * Keep separate financial records for each specific plant, then compare results of all locations annually. * Enforce company policy to ensure illegal activities are not taking place, such as the private selling of vehicles.

Follow-Up * We will be back in one year to follow up on the Wilsonville plant to