1.

About the company An Introduction of Caterpillar Inc

Caterpillar Inc also known as CAT is almost always in the list of fortune 500 because CAT is the
worlds largest company of heavy equipment manufacturing. CAT has the expertise in design,
development and manufacturing of the construction and mining machinery equipments. CAT also
manufactures industrial gas turbine, the diesel engines and the natural gas engines. They are also
diversified in the area of logistics, power generation and financing. From last 90 years the name CAT
is known for its high level quality production and services.
Caterpillar has its headquarter in Peoria, United States and has its export all over the world. They
have the largest network of suppliers and dealers in the world. CAT has spread its business in more
than 180 countries. The major competitors of CAT are John deer, Komatsu ltd etc. CAT is operating in
the oligopolistic market structure where CAT has to mainly face few major peers of the industry.

2. Part (A) : External Audit:

External auditing is the process of auditing to understand the external environmental which refers to
the invisible forces from outside Caterpillar. These forces certainly influence and affect the
performance of the Caterpillar in short run as well as long run.
These forces of the external environment can be understood from the following figure.

General Environment (Demographic, Economical, Sociocultural, Global, Technological,

Political & Legal):