Risk Management

You are a CGA and make water been recently hired to devise up an internal audit department at an agriculture club, Greenlee Inc. The attach to has developed a reputation for full(prenominal) prize products. This has contributed to an annex in sales from $3 one million million four eld ago to just over $10 million in the current year. Due to this speedy growth, the family has expanded its operations oftentimes quicker than originally anticipate by management. The president, Janice, feels that adequate controls have not been put in place to match the growth the beau monde has experienced. As your scratch mandate, Janice wants you to audit the systems and practices associated with the production mental process. The presidents main(prenominal) concern is regarding the production of Greenlees scientifically engineered seeds. She is concerned that oversight the majority of orders being filled on time in that respect are live overruns and potential issues with r espect to the quality of the seeds produced. Your preliminary examination work has determined that the production of for each one batch of seeds takes up to five days. All production cost are recorded every week in a computerized record system under the office of Jin, the production manager.

Jin sensible you that since Greenlee employs a variance compendium process for evaluating production efficiency, the info in his system is completely free-lance of the main explanation system. The process of reviewing product costs includes an analysis of essential versus budgeted cost as established by Jin. Variance analysis is performed and report to Jin on a quarterly basis. In additio n, Janice has indicated that during this le! vel of rapid growth, the company has not updated its quality control methods nor change order of magnitude the frequency of tests to adapt to higher volume and increasingly complex production runs. Janice is concerned that these issues could have an effect on Greenlees favourableness as well as on the companys reputation. Prior to conducting the audit, Janice would like you...If you want to get a good essay, order it on our website: OrderEssay.net

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