Consumer Monitoring: Conducting an Internal Audit - Assignment Example

Internal Audit Report Budget Transport £1000 Meals £1000 Accommodation £800 Materials £500 Miscellaneous £500 Total £3800 Time sheets Department: store/inventory job title 1 Week commencing April 7th MON TUE WED THUR FRI TOTAL Breakdown of equipments Utensils availability Availability of mini trucks Cleaning agents Inappropriate information e.g. wrong packaging Grocery availability Time spent in waiting for quality assurance Elimination of waste and rejected products Department: quality assurance job 2 commencing April 7th MON TUE WED THUR FRI TOTAL Size/volume of food Shape of snacks Color of beverages and snacks Texture and flavor Job title 3 Department: human resource management week commencing 7th April Salary range Education level experience Working conditions Overtime payments Motivation programs Middle management Lower level management Operational managers Job 4 department customer care week commencing 7th April Feedback Loyalty cards Customized service Courtesy/consistency completeness timely MON TUE WED THUR FRID Description of the client In 1996, the initial Tea Station was set up in San Gabriel, California. Since of 2013, there are a sum of twelve Tea Station settings in California and Nevada, building Tea Station the biggest overseas franchise series for the close related company, Ten Ren Tea Corporation. Old commerce, new management, has forever been the chief driving force at the back Tea Station’s unique success. Tea Station has for all time strived for brilliance in the development and selling of different tea correlated food and drinks. Taking the ancient Chinese tea background to the globe by offering a widespread selection of chilly and hot tea allied beverages as fit as tea flavored munchies and meals. The furnishings of all Tea Station supplies have also turned out to be an icon among its customers. Tea Station presents modern and relaxing surroundings with the feel of Chinese flair, generating memorable drinking and banquet experience of all clientele. Management is headed by Jimmy Huang. Jimmy’s interest in tea, lead to establishment at an infantile age by his uncle, who is a chief executive officer at Ren Tea Company Interview questions In what conduct do you appraise your own activities in your current position? What in your precedent shows a physically powerful drive for accomplishing results? Explain a time when you conversed somewhat unpleasant or difficult to an important person. How did you stress yourself? How do you set off about making decisions? Describe a team practice that was inspiring for you and why. Describe a group you worked on that was chiefly effectual and why. Describe a state of affairs in which you had to resolve a complex problem with somebody who had a different come up to Describe your practice in editing articles, documents, or any other form of written communication What characteristic make others particularly simple people with whom to work? Tell me the principal difference you have had with a colleague, boss. What was the result? What is the affiliation as today? Explain an occasion when you had to make an unpopular verdict. What happened? Tell me about the state of affairs in which you felt it essential to modify or change your Tactics in order to act in response to another person’s needs? What are some of the aspects that you are looking for in a corporation? Why do you desire to come to work for our business? Audit program Audit program is a lay down of policies and actions that say aloud how an evaluation of a company is done. This usually involves precise instructions as to how much, what and proof must be collected and assessed, as well as who should collect and examine the data and at what time this should be done. These kinds of programs are second-hand to check up on stuff like a business operation, finances, saving, and efficiency, and are usually tailored to the precise business or purpose. Purpose for audit Establish compliance with corporation policy and dealings. To ensure adequacy of internal control systems Promote efficiency and effectiveness in all operational activities Ensure contract compliance Enable a firm to rally government audit regulations and standards The audit objectives Ensure proper purchase and inventories systems, Promote high quality of the products, Ensure high customer services and satisfaction Determine whether appropriate payroll system for employees is in place. Risks facing tea station Identifying risks in payroll database with complete job descriptions and salary ranges Risks facing tea station includes the following: challenge of ensuring consistency in food quality, texture, taste and colour in all its franchise Fluctuating inventory levels due to inconsistent supply of stock Audit steps i. Risk assessment, Risk assessment deal with strength of mind of to understand quantitative or qualitative worth of risk related to a tangible situation and a predictable threat or hazard. ii. Audit planning, During audit planning we carried out the following steps: Developing, engagement with our client through discussions, this enabled us to agree on the timing of the audit, meet the employees of the client. Reviewing the client documentation, Review of documentation in such areas as purchase and inventory systems helped us to develop a good work program for the audit task (King 23). We later inquired about the recent changes or development within the firm. This helped us to understand how results were to be interpreted when compared with the earlier or previous years. We carried out staffing to determine the timing and need for meeting with personnel from different departments such as purchase department, inventory control managers and consumer monitoring/promotion department. Lastly, we had to schedule with the client so as to make appropriate arrangements for the examination of all firm activities and processes at a given dates and time while ensuring that necessary documentation is there. iii. Audit preparation During audit preparation we conducted the following activities: meeting the board of governors or board directors, we created audit framework document, we then carefully developed audit procedures, timing of the audit, and fee arrangement and later on develop audit plan and lastly conducted an outset meeting. Work program to achieve your audit objectives Risk assessment process Results from the interview revealed the following discussed under enterprise risk management using the COSO model together with control activities employed. The components are: Internal environment Tea station has a good ways and actions to ensure that interrelated risks management. This achieved by ensuring that business units at different levels are integrated to ensure that synergy is achieved. Tea station also engages in concentric diversification. This reduces risks and increases market access. Authorization and control is highly employed (Braiotta 34-45). Objective setting event At this strategy management at tea station have shown a strong ability to tolerate risk (Pickett 47-62). This demonstrated by their ability to create various outlets countrywide promote by high levels of risk appetite. This is through constant reconciliation of information. Event identification Through event identification, management at Tea Station have been able to determine events which have the ability to create positive impacts have over past years they have been a success full in setting up effective strategies to ensure appropriate purchases and stock level. This in established through separation in duties in the firm Risk assessment Risk response control activities Tea station, through its constant cost and benefit analysis, has been able to come up with selective response pinned on evaluation of a collection of responses and risks. This has led to high employees’ retention and improved customer satisfaction in the firm. This has been stimulated by continuous stress on importance of accuracy in data entry. Control activities There are various control activities in place at tea station this includes the use of information technology control such as biometrics and password to restrict entry and execution of a given activities. This is facilitated physical control mechanism (Chorafas 134). Information communication Through information and communication technology tea station have been able to promote and ensure reliable discovery of new ideas, appropriate communication, in the required format and time frame. This has enabled employees to carry out their activities appropriately. Well-designed communication at tea station has led to broader view of communication, downward flowing up and across all departments. This has created efficiency in the organization. Monitoring Managing in tea station employ on-going monitoring and evaluation this has led to continuous improvement in the services offered by the firm as well as improved customers’ satisfaction hence promoting responsibility in different departments responsible (Kimbell 154). Team reflection, after going through purchase and inventories, quality of the products and customer services and satisfaction systems, we are able to state that tea station has strong internal control systems in physical security, proper approval, authorization and verification of duties, separation of duties and reconciliation of different departs operation in the firm but has weak accountability mechanism and rotation of duties. Works Cited Braiotta, Louis. The audit committee handbook. New Yor: k: Wiley, , 2010. Chorafas, Dimitris. Implementing and auditing the internal control system. Hampshire: Palgrave,, 2011. Kimbell, Lucy. Audit. london: book works, 2009. King, Alfred. Internal control of fixed assets a controller and auditors guide. N.J. Wiley: Hoboken, 2011. Pickett, Spence. r. Internal control a managers journey. New York:: John Wiley, 2011. Read More