Canadian Wood Toys INC. Essay

I lead begin by highlighting the splendor of the visit in assessing the risk and marking the measurings in reducing and mitigating the risk that our comp all is facing. The impact of the risks on global production line it is dramatic in our daytimes, changing the entire look of the industries and financial dish ups. several(prenominal) risks could be anticipated and range but around could not. Companies now argon using more and more key steps and principles to better pick verboten the risks by *** localiseing the risks relevant to the organization*** assess the significance and implications of those risks to the business *** identify and establish a function for collaboration on risk moderateness with other organizations and deviateners *** integrate Enterprise Risk Management into the organization *** centralize resources on key risks in order to come across the organizations objectives (Source PricewaterhouseCoopers effective ERM)Under IAA Standard 2120 Risk M anagementThe upcountry examine activity must evaluate the effectiveness and contribute to the rise of risk neckment processes. entrust advisory 2120.C1 states During consulting engagements, internal auditors must source risk consistent with the engagements objectives and be alert to the being of other operative risks. In manufacturing companies, production is usually the most primary(prenominal) aspect of the entire process mostly due to the high hail incurred, the staffing and the complexity of the departments knotted Production is of vital concern to precaution because of the grand risks associated with the process. I cook set some of the most important risks and how to manage the risks to minimize the impact. Along with theproduction process, other areas can be identified as posing risks distribution, finance, human resources I have identified below some of the risks with the highest impact in our companyKEY RISKSMITIGATON (examples)The risk of manufacturing un collectible or substandard productsDetermine the cause of the quality defect (human geological fault or machine) Trend abbreviation reports to address the recurrence of the defectsThe risk of wanting deadlines for toys deliveries at Christmas fourth dimension Review the production scheduling to agree with the item job orders to avoid overproduction of toys that are not scheduled for spoken languageThe risk of labor insecurity potential strikesReview labor contracts and borderline wage government regulations negotiations with union and labor boardsThe risk of unknown ambition on international marketsUse various econometric and statistical analysis to monitor the movement of market interestThe risk of foreign deepenUse a foreign metamorphose contractAccept hire in one currency only (US)Hedging of foreign exchangeRisk of unanticipated or sudden changes in regulations, codes or standards in regards to the exploitation of the wood and equipment and machineries used The company has to be actively involved in the development of regulations, codes and standards to provided improve the safety of the equipment The risk of misemploy to ecology, scenery due to over exploitation of forestry Use environmental palliation programs able to protect and restore the forest Government fire trade protection programsThe risk of accidents in the process of transportation of the logsRegular monitoring of the vehiclesChecking drivers hours of puddle implementing special schedule of hoursRisk of loss of licensing for cutting and harvesting the trees permutation in advance of the licenses, request from government of auditing the harvesting areasThe risk of record and lumbering fire damage and vehicle damage Forestry and timber insurance that focuses on logging and lumbering, sawmills, automobiles and equipment The risk related to the liquidity and payment schedules which could take in to credit losses Establish rules for tendering, levels of approval authority and ru les for credit leadThe risk of reporting erroneous financial information for internal and come forthside decision Use external appraisers to evaluate fair value of assets and properties old managers should assess their financial reports to determine when they require estimates based on significant judgment And ensure that independent expertise is applied in deriving the reportsThe risk mitigation step involves development of mitigation excogitations designed to manage, eliminate, or reduce risk to an acceptable level. Once a pattern is implemented, it is continually monitored to assess its efficacy with the intent of revising the course-of-action if penuryed. I would like to ingeminate as stated in the IAA Standards that the organization should fully control that management remains responsible for risk management. As inherent auditors, we should endure advice, and challenge or support managements decisions on risk, as opposed to making risk management decisions. Below ar e some of the responsibilities that entrust not fall under the audit team climb the risk appetite. Imposing risk management processes. Management assurance on risks. Taking decisions on risk responses. Implementing risk responses on managements behalf. Accountability for risk management.Question 4MEMOTo Director of Internal audit DepartmentFrom . Assistant Director Internal audit while October 06, 2014CCAs requested, I have prepared a plan for auditing the division of Student Services as part of the Central College Institution. I will detail 6 steps in the audit process but firstly I want to highlight the Standard 2200, Practice Advisory 2200-1 that states the requirements for the engagements planning and outlines the steps. Internal auditors must develop and plan for separately engagement, including the engagements objectives, field, timing and resource allocations. The Internal auditor plans and conducts the engagement, with supervisory review and approval1. The first step is To obtain specific cognition of the unit to be audited.In this stage of the process we will ruck up and review the specific documentation that will help us getting more familiar with the division of viands service residential and campus. many of the documents we will be reviewing The annual budget we have information virtually how much the overall budget is (8.9mil.) need to know how much is allocated to the fodder for thought service program and how is spent. Policies and proceduresPrevious internal audit papers and reports proclivity of the staff org chartsContracts with feed suppliersDocumented projects and how the implementation process took place Upon reviewing of the documents we will be able to assess the problems that incurred it will help us identify any managerial mistakes, any miscommunication between suppliers and management if in that respect is decent staffing2. The second step in the audit plan is to Establish the audit objectives and the scope of the audit .At this stage we need to review all the activities involving food service program step by step. This is to identify areas of weakness, why at that place are negative reviews why there is such a fiddling budget allocated to such important segment in the students activity in the campus. Also we will beable to identify whether the appropriate policies and procedures were followed. Is the part time staff working in the 6 food service facilities skilled for the specific job they do? why there is only part time staffing and no full time jobs if there are enough employees considering the large division of food service included 6 cafeterias and restaurants plus residential food service.3. The following step is The audit methodology.In this stage of the audit process we will be able to gather additional information by interviewing individuals involved in all aspects of the student services division. We will be asking questions in order to determine if there are possible weaknesses that ca n have a major impact of the effectiveness of the operating and managing the 6 restaurants and cafeterias as well as the residential food service. We will be interviewing the part time staff about the schedule they have, if there are any complaints, if there is enough coverage at specific time of the day i.e. morning and lunch for the cafeterias and the restaurants. We will be interviewing the students and t individuallyers about the hours of operation of the locations of the food service they should be open late and they are materially destruction early. We will be asking questions about the meal plans and find out if there is anything to improve on4. The adjoining step is Determine the audit criteria.This very important step in the audit program will help us identify some of the criteria we can use in order to better assess the practices in the food service division.BudgetingThe food service division must have a well constituted budget and a cost control in place and oversee n by qualified staff.Price ManagementThere should be a equipment casualty verification policy in place to manage better the expense of meals provided by the restaurants and the cafeteria in comparison to other food providers around the campus (beat the price)Staffingthere must be a criteria that analyze and conform with the labor standards achieve and surpass the minimum wage for the part time employeesFood look and divers(prenominal)itythere should be put in place a more divers meal plan based on the requirements and suggestions from the customers (students divers ethnicity) new standards for nutritional meals are put in place and need to be followedFood locations managementthe standards for cleanliness and sanitation that are put in place need to be followed surveys will be handed out or on line surveys to measure the customer satisfaction5. The following step is Preparing staffing plans and time budgetsAt this stage in the audit plan we are dealing with establishing the budge t necessity to accomplish the audit scope and the staff required to accomplish the plan in a seasonable manner. Since we are dealing with specifics in food industry we have identified areas where there is not enough expertise from our team therefore we require an additional external consultant (possible a nutritionist that possess the necessary knowledge). For the satisfaction survey we will be using the expertise of the actual marketing staff from the service department to create and implement the survey.6. The next step is Communication with managementSubsequently, the audit plan needs to be discussing with the management. We will set up time for a meeting with the management to discuss the details over the purpose of the audit. We need to discuss further about the time allocated to the audit plan and go over each proposal for the relevant criteria that was chosen. In the meeting we will highlight the importance of the management active contribution and support to the audit proc ess.