Canadian Wood Toys INC. Essay

I result begin by highlighting the importance of the scrutinize in assessing the assay and identifying the move in reducing and mitigating the assay that our confederation is facing. The impact of the risks on global business it is dramatic in our days, changing the entire look of the industries and financial benefits. Some risks could be anticipated and identified but some could not. Companies now are using more and more key steps and principles to better manage the risks by *** identifying the risks applicable to the organization*** assess the significance and implications of those risks to the business *** identify and establish a process for collaboration on risk palliation with other organizations and partners *** integrate Enterprise Risk Management into the organization *** focus resources on key risks in couch to achieve the organizations objectives (Source PricewaterhouseCoopers effective ERM)Under IAA quantity 2120 Risk ManagementThe inner audited account oc cupation must evaluate the effectiveness and contribute to the forward motion of risk management processes. course session advisory 2120.C1 states During consulting competitivenesss, internal auditors must address risk consistent with the engagements objectives and be alert to the existence of other significant risks. In manufacturing companies, production is usually the some important aspect of the entire process virtuallyly due to the high cost incurred, the staveing and the complexity of the surgical incisions heterogeneous Production is of vital concern to management because of the important risks associated with the process. I bring in identified 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 comp some(prenominal)KEY RISKSMITIGATON (examples) The risk of manufacturing defective or substandard productsDetermine the cause of the quality defect (human wrongful conduct or machine) Trend analysis reports to address the recurrence of the defectsThe risk of missing deadlines for toys deliveries at Christmas time freshen up the production scheduling to agree with the proper(postnominal) job orders to avoid everyplaceproduction of toys that are not plan for deliveryThe risk of labor insecurity potential strikesReview labor contracts and borderline wage authorities regulations negotiations with union and labor boardsThe risk of unknown competition on international markets hold various econometric and statistical analysis to monitor the movement of market interestThe risk of foreign exchangeUse a foreign exchange contractAccept payment in one currency exactly (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 comp both has to be livelyly involved in the development of regulations, codes and standards to move on mitigate the safety of the equipment The risk of damage to ecology, scenery due to over exploitation of forestry Use environmental mitigation designs able to protect and restore the forest Government fire protection programsThe risk of accidents in the process of transportation of the logsRegular monitoring of the vehiclesChecking drivers hours of work implementing special schedule of hoursRisk of loss of licensing for thinning and harvesting the trees Re parvenual in advance of the licenses, request from government of auditing the harvesting areasThe risk of logging and leaden fire damage and vehicle damage Forestry and timber Insurance that focuses on logging and lumbering, sawmills, automobiles and equipment The risk think to the liquidity and payment schedules which could lead to credit losses attest rules for tendering, levels of approval autho rity and rules for credit turn backThe risk of reporting erroneous financial information for internal and impertinent decision Use external appraisers to evaluate fair value of assets and properties Senior 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 plans designed to manage, eliminate, or reduce risk to an acceptable level. Once a plan is implemented, it is continually monitored to assess its efficacy with the intent of revising the course-of-action if needed. I would like to reiterate as stated in the IAA Standards that the organization should fully understand that management remains responsible for risk management. As sexual auditors, we should provide advice, and challenge or support managements decisions on risk, as opposed to making risk management decisions. Below are som e of the responsibilities that go forth not blood under the audit team up Setting the risk appetite. Imposing risk management processes. Management trust 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 auditDate October 06, 2014CCAs requested, I have prepared a plan for auditing the fraction 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 bring outlines the steps. Internal auditors must develop and plan for each engagement, including the engagements objectives, scope, measure and resource allocations. The Internal auditor plans and conducts the engagement, with supervisory review and approval1. The first step is To obtain limited knowledge of the unit to be audited.In this stage of the process we will adjoin and review the specific documentation that will help us getting more familiar with the division of fodder service residential and campus. Some of the documents we will be reviewing The annual budget we have information about how a great deal the overall budget is (8.9mil.) need to know how much is allocated to the food service program and how is spent. Policies and proceduresPrevious internal audit papers and reportsList of the staff org chartsContracts with food 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 there is copious 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 there are negative reviews why there is such a small 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? wherefore 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 pursuit 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 can have a major impact of the effectiven ess 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 teachers about the hours of operation of the locations of the food service they should be open late and they are rattling closing early. We will be asking questions about the meal plans and find out if there is anything to improve on4. The next 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 established budget and a cost control in place and overseen by qualified staff.Price ManagementThere should be a price v erification policy in place to manage better the price 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 Quality and diversitythere 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 sanitisation that are put in place need to be followed surveys will be handed out or on line surveys to measure the customer ecstasy5. The following step is Preparing staffing plans and time budgetsAt this stage in the audit plan we are dealings with establishing the budget necessary to accomplish the audit scope and the staff required to accomplish the plan in a timely 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 process.