Koor's Internal Audit Department To Be Eliminated.(Koor Industries Ltd.)

Israel Business Today, June, 1998

As soon as Koor's new management is in place, one of its first acts will be a general company wide reorganization. The outline of this reorganization calls for Koor's internal audit department to be scrapped and its function transferred to an outside accounting firm. This will chop Koor's accounting department to about half its current size.

The norms at most large western corporations are to have outsider accounting firms making internal audits. In addition other cutbacks in manpower will be made by closing Koor's office in New York and by hiring less external consultants. Voluntary retirements at Koor will increase, as many senior executives are expected to follow Gaon when he finally leaves Koor.