According to the final report, the following are the most recommended areas of the audit and should really be considered first. Wrong entries, it was observed that due to the wrong entries of the employees that travelled, a lot of money was lost in the process and therefore if this gets experienced again then the company would be in a high risk of losing a lot of money. The accountant should be encouraged to use original documents when making the payments because it is at that point that truck was lost and a lot of money disappeared.
In the event of outsourcing, the company should always ensure that they a contract of work between them and the involved company, so that the company can monitor and audit the project whenever they want. Lack of this would make the companies resources be embezzled in the process and also a lot of money might end up getting lost in the process. In the jail project there was no contract and therefore the audit process was not done meaning that the company could not have an idea how the funds were being used.
The issue of employee’s insecurities should be looked into immediately. The company might end up to be sued later maybe the employees who get into accidents, and this might lead to a lot of money been used for compensation. Also this hinders the employees from good performance of the work. The employees need a good and risk free area of work so that they may perform fully and be effective in production; this means better sales and more profits to the company.
The purchase department created a great loss to the company. Their late submission of the required materials made the company experience a lot of expense in purchasing other products. They should make sure that they have done their submissions in time to a lot of expenses. These late submissions caused the sales of the company to also drop significantly making the company to experience a very high loss and also purchase the items at very high prices.
The human resources should ensure that they have proper job advertising. The whole public will be aware of their vacancies. If many of them apply then the company would be able to get the best applicants, this is a good thing to the company. it leads to a greater professionalism and also the company would be able to perform better, but if they concentrate on the same ethnic group then even the less qualified might get the jobs they are not well at performing.
Table of Contents
- Executive Summary
- Background
- Audit Scope and Purpose
- Findings
- Recommendation
- Conclusion
- References
Objectives and Key Themes
The objective of this internal audit report is to identify areas of risk and inefficiency within Blue Bristol Water Company and provide recommendations for improvement. The audit focuses on financial controls, employee safety, and operational efficiency.
- Financial Control and Loss Prevention
- Employee Safety and Risk Management
- Operational Efficiency and Process Improvement
- Procurement and Purchasing Processes
- Human Resources Management and Practices
Chapter Summaries
Executive Summary: This section highlights the most critical findings of the internal audit, focusing on significant financial losses due to incorrect accounting entries related to employee travel expenses and the lack of contracts for outsourced projects. It also emphasizes the need for improved employee safety measures and more efficient procurement practices to avoid significant financial losses and potential legal liabilities. The summary underscores the need for immediate attention to these issues to mitigate risks and improve the company's financial health.
Background: This chapter provides an overview of Blue Bristol Water Company, including employee demographics, payroll information, annual purchases and revenues, project expenses, and recent financial performance. It also details significant operational changes made in recent years, such as the implementation of a new general ledger system, the introduction of P-cards to replace petty cash, and the outsourcing of accounts receivables. The information sets the context for the audit findings by describing the company’s size, structure, and recent history of changes.
Audit Scope and Purpose: This section outlines the scope and objectives of the internal audit. The audit aimed to improve the company's control, governance, and risk management processes, focusing on identifying areas of inefficiency and risk within the accounts, finance, and IT departments. The audit was initiated by the board to address concerns about employee negligence and accounting errors and aimed to promote better operational efficiency and employee well-being.
Findings: This chapter details the specific findings of the internal audit, focusing on significant financial losses resulting from duplicate payments due to incorrect accounting entries. It also highlights serious safety concerns, including instances of employees working without protective gear, resulting in injuries and potential legal liabilities for the company. The chapter meticulously documents financial losses from accounting errors and instances of employee injury due to inadequate safety measures.
Keywords
Internal audit, financial controls, employee safety, operational efficiency, procurement, human resources, risk management, loss prevention, accounting errors, workplace accidents, safety standards, financial reporting, outsourcing, contract management.
Blue Bristol Water Company Internal Audit Report: Frequently Asked Questions
What is the purpose of this internal audit report?
The purpose of this internal audit report is to identify areas of risk and inefficiency within Blue Bristol Water Company and provide recommendations for improvement. The audit focuses on financial controls, employee safety, and operational efficiency.
What are the key themes explored in the report?
Key themes include financial control and loss prevention, employee safety and risk management, operational efficiency and process improvement, procurement and purchasing processes, and human resources management and practices.
What are the main findings of the executive summary?
The executive summary highlights significant financial losses due to incorrect accounting entries (employee travel expenses) and the lack of contracts for outsourced projects. It also emphasizes the need for improved employee safety measures and more efficient procurement practices to mitigate risks and improve the company's financial health.
What information is provided in the background chapter?
The background chapter provides an overview of Blue Bristol Water Company, including employee demographics, payroll information, annual purchases and revenues, project expenses, and recent financial performance. It also details significant operational changes, such as the implementation of a new general ledger system and the introduction of P-cards.
What is the scope and purpose of the audit as outlined in the report?
The audit aimed to improve the company's control, governance, and risk management processes, focusing on identifying areas of inefficiency and risk within the accounts, finance, and IT departments. It was initiated to address concerns about employee negligence and accounting errors and aimed to promote better operational efficiency and employee well-being.
What specific findings are detailed in the "Findings" chapter?
This chapter details specific findings, focusing on significant financial losses resulting from duplicate payments due to incorrect accounting entries. It also highlights serious safety concerns, including instances of employees working without protective gear, resulting in injuries and potential legal liabilities.
What recommendations are included in the report? (Note: The provided HTML snippet does not include the Recommendations section.)
The provided HTML does not include the recommendations section of the report. This section would typically detail specific actions the company should take to address the identified risks and inefficiencies.
What keywords are associated with this internal audit report?
Keywords include: Internal audit, financial controls, employee safety, operational efficiency, procurement, human resources, risk management, loss prevention, accounting errors, workplace accidents, safety standards, financial reporting, outsourcing, contract management.
What is the overall structure of the report?
The report includes an executive summary, background information, a description of the audit scope and purpose, detailed findings, recommendations (not included in the provided snippet), a conclusion, and references.
- Quote paper
- Elena Williams (Author), 2017, Internal Audit Report. An Example, Munich, GRIN Verlag, https://www.grin.com/document/359118
