Risk Management

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

Jin intercommunicate you that since Greenlee employs a variance compendium process for evaluating production efficiency, the randomness in his system is completely free-lance of the main method of accounting system. The process of reviewing product costs includes an analysis of essential versus budgeted cost as establish ed by Jin. Variance analysis is performed an! d account to Jin on a quarterly basis. In addition, Janice has indicated that during this level of rapid growth, the company has not updated its quality control methods nor change magnitude the frequency of tests to adapt to higher volume and increasingly decomposable 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: OrderCustomPaper.com

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