Canadian Wood Toys INC. Essay Example for Free

Canadian Wood Toys INC. EssayI allow for begin by higher(prenominal)lighting the importance of the analyse in assessing the pretend and identifying the criterions in reducing and mitigating the take a chance that our company is facing. The impact of the risks on global line of products it is dramatic in our days, changing the entire look of the industries and financial services. Some risks could be anticipated and specify but whatever could non. Companies now ar using more and more key maltreats and principles to weaken manage the risks by *** identifying the risks relevant to the organization*** assess the signifi faecal matterce and implications of those risks to the business *** identify and establish a process for col get the pictureation on risk mitigation with other organizations and partners *** integrate Enterprise Risk focusing into the organization *** focus preferences on key risks in order to achieve the organizations objectives (Source PricewaterhouseCo opers potent ERM)Under IAA Standard 2120 Risk commissionThe internal canvas activity must label the effectiveness and contribute to the improvement of risk attention processes. Practice advisory 2120.C1 states During consulting engagements, internal canvasors must wield risk consistent with the engagements objectives and be alert to the existence of other significant risks. In manufacturing companies, production is usually the most important aspect of the entire process mostly due to the high cost incurred, the staffing and the complexity of the departments pertain Production is of vital concern to management be caseful of the important risks associated with the process. I take up 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 co mpanyKEY RISKSMITIGATON (examples)The risk of manufacturing defective or substandard productsDetermine the cause of the quality defect (human error or machine) Trend analysis reports to address the recurrence of the defectsThe risk of lose deadlines for toys deliveries at Christmas time Review the production scheduling to agree with the specific job orders to avoid every dwellingproduction of toys that are not munimentd for deliveryThe risk of labor insecurity potential strikesReview labor contracts and minimum mesh government regulations negotiations with union and labor boardsThe risk of unknown competition on global marketsUse various econometric and statistical analysis to monitor the movement of market interestThe risk of foreign exchangeUse a foreign exchange contractAccept payment in one currency only (US)Hedging of foreign exchangeRisk of unanticipated or fast changes in regulations, codes or standards in regards to the exploitation of the wood and equipment and machi neries used The company has to be actively involved in the development of regulations, codes and standards to further improve the safety of the equipment The risk of damage to ecology, scenery due to over exploitation of forestry Use environmental mitigation course of instructions able to protect and restore the forest Government implode 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 cutting and harvest the trees Renewal in advance of the licenses, request from government of auditing the harvesting areasThe risk of logging 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 lead to credit losses Establish rules for tendering, levels of commendatio n authority and rules for credit controlThe risk of reporting erroneous financial information for internal and away 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 Internal auditors, we should provide advice, and challenge or support managements decisions on risk, as opposed to making risk management decisions. Below are some of the responsibilities that get out not fall under the audit team Setting 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. psyche 4MEMOTo Director of Internal audit DepartmentFrom . Assistant Director Internal auditDate October 06, 2014CCAs requested, I have prepared a plan for auditing the division of schoolchild 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 consultative 2200-1 that states the requirements for the engagements planning and outlines the steps. Internal auditors must develop and plan for to each one engagement, including the engagements objectives, range of mountains, timing and resource allocations. The Internal auditor plans and conducts the engagement, with supervisory review and approval1. The first step is To obtain specific familiarity of the unit to be audited.In this full stop of the process we will gather and review the specific certification that will help us getting more familiar with the division of food service residential and campus. Some of the documents we will be reviewing The annual budget we have information about how much 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 mooring 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 surrounded by suppliers and management if in that location is enough 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 thither 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 running(a) 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 grand 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 supererogatory information by interviewing individuals involved in all aspects of the student services division. We will be petition questions in order to determine if there are possible weaknesses that can have a study 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 teachers about the hours of operation of the locations of the food service they should be open late and they are actually mop up 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 smash 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 fitting staff.P rice ManagementThere should be a price verification 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 nutritionary 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 postdates 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 budget necessary to accomplish the audit scope an d 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 indeed 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 throw 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 resolve 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 parting and support to the audit process.