Premium Essay

Communication Auditing

In: Business and Management

Submitted By blackbird210
Words 3350
Pages 14
PART I: INTRODUCTION
The past few years have witnessed a significant increase in the role of communication in the success of an organisation, arousing colossal concerns of experts and organisation managers worldwide. Indeed, whether a company is large or small it is a truism that, financing, talent, experience and materials are not enough to succeed unless proper internal communication system are in place that enables smooth operations and enhances business activities (Tourish & Hargie 2009). Due to this significant nature of organisational communication, organisations such as Cordina Farms should focus special attention on how their employees and managers communicate within the company.
1.1. A Brief Description of Cordina Farms
Cordina Chicken Farms is an Australia owned family business with over 60 years of experience in Australian Poultry industry. The company was established by Rosario Cordina and his son Joseph in 1948 in Girraween, NSW, where it still operates today. From the modern manufacturing and distribution plant located at Girraween (NSW), Cordina Farms process, prepare and distribute a wide range of fresh chicken products to Sydney, Newcastle, Wollongong and ACT areas as well as several major intrastate centres in Queensland. The company has recently added to their distribution areas Victoria and South Australia.
From an operation that was founded and run by few family members, Cordina Farms now has grown to a payroll of over 600 full time employees in six sections: Human Resources; Quality Assurance; Sales & Marketing; Finance; Hatchery; Production/Despatch and Maintenance. Maintaining effective communication among 600 people performing different but interlinked functions is not a trivial matter.
To better understand the company’s internal communication, our group conducted a communication audit that assess the present state of the…...

Similar Documents

Premium Essay

Auditing

...March 2012 This Auditing and Assurance Bulletin has been prepared by Auditing and Assurance staff. It has not been issued under the authority of the Auditing and Assurance Standards Board (AASB). This Auditing and Assurance Bulletin is intended to help raise practitioners’ awareness in a timely manner of significant new or emerging issues or other noteworthy circumstances related to engagements addressed by the AASB pronouncements. It is also meant to direct practitioners to relevant requirements, application and other explanatory material in the CICA Handbook – Assurance. auditing and assurance FOR PUBLIC ACCOUNTANTS PERFORMING AUDIT AND REVIEW ENGAGEMENTS BULLETIN Staff contact Chi Ho Ng, CA, CPA(IL), MBA Principal Auditing and Assurance Standards Department 277 Wellington Street West Toronto, ON M5V 3H2 Tel: (416) 204-3443 E-mail: chiho.ng@cica.ca Fax : (416) 204-3408 Auditing Considerations in an Uncertain Economic Environment Uncertainties in the current economic environment There is a possibility that the Canadian economy may weaken in the near term. This has been noted in various sources, including the economic forecast for Canada issued by the Organization for Economic Co-operation and Development. Heightened risks from renewed financial-market turmoil linked to the European sovereign debt crisis and high levels of household indebtedness are eroding consumer confidence. In January 2009, staff of the Auditing and Assurance Standards Board (AASB)......

Words: 7297 - Pages: 30

Premium Essay

Auditing

...Audit and Assurance Services Chapter 1 1 Learning Objectives 1. What is auditing?  Distinguish between auditing and accounting.  Importance of auditing in reducing information risk. 2. Distinguish audit services from other assurance and non-assurance services provided by CPAs. 3. Three main types of audits. 4. How to become a CPA?  Identify the primary types of auditors. 2  What is auditing? Evaluating 3 Nature of Auditing Auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria. Auditing should be done by a competent, independent person. 4 Audit Reporting -- (Expressing Opinions) The final stage in the auditing process is preparing the Audit Report, which is the communication of the auditor’s findings to users. 5 Information and Established Criteria To do an audit, there must be information in a verifiable form and some standards (criteria) by which the auditor can evaluate the information. 6 Accumulating Evidence and Evaluating Evidence Evidence is any information used by the auditor to determine whether the information being audited is stated in accordance with the established criteria. Transaction data Client inquiry Written and electronic Communications with outsiders Observations 7 Competent, Independent Person The auditor must be......

Words: 2208 - Pages: 9

Premium Essay

It on Auditing

...REFLECTION PAPER ON “THE IMPACT OF EMERGING INFORMATION TECHNOLOGY ON AUDITING” In our modern world today, everything is possible... Everything is faster. But based on this fact, do we really know the influence of evolving “Information Technology” on our society specifically in the dynamics of businesses nowadays? To respond with this, IT has affected many sectors or aspects especially auditing. Audit is an evaluation of a person, organization, system, process, enterprise, project or product to enable the auditor to express an opinion whether the financial statements are prepared, in all material respects, is in accordance with the applicable financial reporting framework. The use of computers in the process of auditing is what we called “Accounting Information System” which is wildly by the auditors today. In a business context, information technology (IT) is defined as "the study, design, development, application, implementation, support or management of computer-based information systems". The prompt growth in information technology (IT) competencies and the longing of businesses of all sizes to obtain competitive advantage have led to a dramatic increase in the use of IT systems to make, process, store and communicate information. Today, employees at all levels use IT systems in their daily activities. Electronic records have replaced traditional paper documents. In fact, there are few companies that don’t rely on IT to at least some extent to achieve their financial...

Words: 614 - Pages: 3

Premium Essay

Auditing

...IT Audit Seminar organized by National Audit Office, China 1 to 4 September 2004 Paper on “Formulation of IT Auditing Standards” By -- Ms.Puja S Mandol and Ms. Monika Verma Supreme Audit Institution of India Introduction The use of computers and computer based information systems have pervaded deep and wide in every modern day organization. An organization must exercise control over these computer based information systems because the cost of errors and irregularities that may arise in these systems can be high and can even challenge the very existence of the organization. An organizations ability to survive can be severely undermined through corruption or destruction of its database; decision making errors caused by poor-quality information systems; losses incurred through computer abuses; loss of computer assets and their control on how the computers are used within the organization. Therefore managements across the world have deployed specialized auditors to audit their information systems to find out gaps between declared policies and actual use and shortcomings in the information system design and usage. Information Systems Audit is the process of collecting and evaluating evidence to determine whether a computer system has been designed to maintain data integrity, safeguard assets, allows organizational goals to be achieved effectively and uses the resources efficiently. The IS Auditor should see that not only adequate internal controls......

Words: 6839 - Pages: 28

Premium Essay

Auditing

...investors who take our ownership responsibilities seriously, investing significant resources and time in securing, monitoring and voting our assets. Financial reports provide vital information for us to be able to monitor executives’ use of our capital, and the audit of annual statements offers an essential assurance that information in company accounts is ‘true and fair’ (as required by the 4th and 7th Accounting Directives of the EC). The quality of the audit is, therefore, of utmost importance. We believe there are a number of worrying features of the audit market. At a very fundamental level, we are concerned about auditor independence and professional scepticism. Potential conflicts of interest have always been present in the system of auditing, so the challenge is how these are managed. We believe the current system is not delivering, as evidenced by: The failure of auditors to provide adequate warnings prior to the collapse of a number of banks and insurers in the financial crisis. In the EU alone, between September 2008 and the end of 2010, 182 banks received liquidity aid and/or debt guarantees, and 114 banks received either capital injections or asset relief aid1. None of these banks received a qualified audit report prior to the crisis. Too few large auditors providing audit services to the largest listed companies. The average market share of the Big Four audit firms in EU member states is over 90%, and in certain sectors this rises to virtually 100%2. The lack of......

Words: 2266 - Pages: 10

Premium Essay

Auditing

...PROCEDURES 8 COMMONWEALTH BANK OF AUSTRALIA’S INTERNAL CONTROL STRUCTURE 9 1. THE CONTROL ENVIRONMENT 10 2. RISK ASSESSMENT 10 3. CONTROL ACTIVITIES 10 4. INFORMATION AND COMMUNICATION SYSTEM 10 PRELIMINARY AUDIT STRATEGIES FOR SIGNIFICANT ASSERTIONS 11 1. EXISTENCE AND OCCURRENCE 11 2. COMPLETENESS 12 3. CUT OFF 12 4. RIGHTS AND OBLIGATION 12 5. VALUATION AND ALLOCATION 12 REFERENCES 14 Executive Summary The aim of this report is to develop an audit plan using the 2008 annual reports of the Commonwealth Bank of Australia. This report will provide an understanding of the underlying concepts of an overall audit strategy, which will be used for the verification of Commonwealth Bank operations. This strategy will bring forward the direction and scope of the Commonwealth Bank of Australia’s audit plan. This report will address five major points these are as follows: • Understanding the entity and its environment • Making preliminary judgements about materiality levels • Considering the audit risk • Understanding Commonwealth Bank of Australia’s internal control structure • Developing preliminary audit strategies for significant assertions The main source used in planning the audit is the Commonwealth Bank of Australia’s annual financial report together with the relevant auditing standards: 1. ASA300 - Planning an Audit of a Financial Report 2. ASA315 - Understanding the entity and its environment and assessing the risk of material misstatement and...

Words: 527 - Pages: 3

Premium Essay

Auditing

...Kristin Bamberger Business Risk and Auditing Regis University Auditing Principles June 28, 2014 Business Risk and Auditing In the eyes of the average person auditing is a very black and white business as is all aspects of accounting. However, neither of these are as cut-and-dry as people would like to think. Auditors, as many people assume, are not always looking for fraud. Their main purpose in auditing is to ensure the financial statements comply with Generally Accepted Accounting Principles (GAAP). Auditing is as much for external users as it is for internal users. It is important for internal users because they can ensure they are complying with many of the GAAP laws. For external users auditing allows them to make educated decisions on which companies to invest in and they can see both business risk and audit risk. For any given auditing firm they will evaluate a potential client before actually committing to doing an audit. Auditors are looking at business risk and are always aware of audit risk. These two terms are glaringly different and yet go hand-in-hand for auditors. Many people think that business and audit risk are all about fraud, however, audit risk is more about legally protecting the auditing firm and the CPA’s while business risk is about protecting people that may invest or lend money to a business. Fraud is not actually a large part of auditing because auditing is looking at internal controls, and if a company has strong internal controls......

Words: 1837 - Pages: 8

Premium Essay

Auditing

...Lecture 1 Chapter 1- Demand for audit and assurance services. Assurance services * Independent professional services that improve the quality of information for decision makers. 1. Attestation services * A type of assurance services in which the public accounting firm issues a written communication that express a conclusion about the liability of a written assertion of another party. * Three categories of Attestation services: a. Audit historical financial statements A form of attestation services in which the auditor issues a written report expressing an opinion about whether the financial statement are in material conformity which accounting standard. b. Review of financial statement: A type of attestation service performed by public accountants. Many entities want to provide assurance on their financial statement, without incurring the cost of an audit. c. Other attestation services Such as a natural extension of audit of historical financial statement, as users seek independent assurance about other types of information. For example: banks often require debtors to engage public accountants to provide assurance about the debtor’s compliance with certain financial covenant provision stated in the loan agreement. 2. Other assurance services, They are similar to attestation services in that public accountant must be independent and must provide assurance about information used by decision maker, but differ in that the public...

Words: 6029 - Pages: 25

Premium Essay

Auditing

...of detecting errors and fraud that are material to the financial statements. 64. Which of the following best represents fraudulent financial reporting? K. The transfer agent issues 40,000 shares of the company's stock to a friend without authorization by the board of directors. B. The controller of the company decreases warranty expense by $3 million because the company will otherwise miss analysts' expectations this quarter. C. The in-house attorney receives payments from the French government for negotiating the development of a new plant in Paris. D. The accounts receivable clerk covers up the theft of cash receipts by writing off older receivables without authorization. 65. According to professional auditing standards, which of the following best represents a type of fraudulent financial reporting? L. Management accrues a liability and discloses the possible outcome of a lawsuit prior to settling the matter. M. Management reclassifies a negative cash balance by increasing cash and also increasing a current liability. N. Management discloses its failure to meet loan covenants but states that a waiver has been received. D. Management intentionally excludes a subsidiary from its consolidated results that it controls significantly. 66. What type of fraud occurs when the deposits of current investors are used to pay returns on the deposits of previous investors with no real investment happening? O.......

Words: 6460 - Pages: 26

Premium Essay

Auditing

...ISA ISA 500 March 2009 International Standard on Auditing Audit Evidence 500 INTERNATIONAL STANDARD ON AUDITING 500 Audit Evidence Explanatory Foreword The Council of the Malaysian Institute of Accountants has approved this standard in March 2009 for publication. This standard should be read in conjunction with the Preface to Malaysian Approved Standards on Auditing; Preface to International Standards on Quality Control, Auditing, Review, Other Assurance and Related Services; Glossary of Terms and International Framework for Assurance Engagements. The status of International Standards on Auditing is set out in the Preface to Malaysian Approved Standards on Quality Control, Auditing, Review, Other Assurance and Related Services. Applicability International Standards on Auditing (ISAs) are to be applied in the audit of financial statements under all reporting frameworks. Reporting frameworks are determined by legislation, regulations and promulgations of the Malaysian Institute of Accountants and where appropriate mutually agreed upon terms of reporting. ISAs are to be applied in the audit of historical financial information. Effective Date in Malaysia Effective for audits of financial statements for periods beginning on or after January 1, 2010. Reproduction of Full Text of Final IFAC Publication “Copyright © April 2010 by the International Federation of Accountants (IFAC). All rights reserved. Used with permission of IFAC. Contact......

Words: 6256 - Pages: 26

Premium Essay

Auditing

...industry to assess: A) client business risk. B) control risk. C) inherent risk. D) audit risk. Answer: A 5 يستخدم المراجع المعرفة المكتسبة من خلال فهم الأعمال التجارية للعميل والصناعة لتقييم: A) العميل المخاطر التجارية. ب) مراقبة المخاطر. ج) الملازمة للخطر. د) مراجعة المخاطر. الإجابة: A 6) There are three main reasons why an auditor should properly plan audit engagements. Discuss each of these reasons. Answer: Three reasons why an auditor should properly plan audit engagements are: • To enable the auditor to obtain sufficient competent evidence for the circumstances. This is essential for minimizing legal liability and maintaining a good profession reputation. • To help keep audit costs reasonable. Given the competitive auditing environment, keeping costs reasonable helps the firm obtain and retain clients. • To avoid misunderstandings with the client. This is important for good client relations. 6) وهناك ثلاثة أسباب رئيسية لماذا مراجعا للحسابات بشكل صحيح يجب أن خطة مراجعة التعاقدات. بحث كل من هذه الأسباب. جواب: ثلاثة أسباب لماذا مراجعا للحسابات بشكل صحيح يجب أن خطة مراجعة التعاقدات: • لتمكين المراجع الحصول على أدلة كافية المختصة للظروف. وهذا أمر أساسي للحد من المسؤولية القانونية والحفاظ على سمعة مهنة جيدة. • للمساعدة على إبقاء تكاليف مراجعة الحسابات معقولة. نظراً لأن البيئة التنافسية التدوين، وإبقاء التكاليف معقولة يساعد الشركة الحصول على والاحتفاظ بالعملاء. • لتجنب سوء التفاهم مع العميل. وهذا مهم لعلاقات العملاء جيدة. 7) When an auditor......

Words: 8950 - Pages: 36

Premium Essay

Auditing

...competent professional service based on up-to-date developments in auditing practice and relevant legislation. f) Technical Standards: Audit should be performed by following certain standards, international or national. International Standards on Auditing (ISAs) The auditor should follow basic principles and essential procedures together with related guidance as contained in ISAs. International Standards on Auditing (ISAs) are issued by the International Auditing Practices Committee (IAPC). The IAPC is a standing committee of the Council of the International Federation of Accountants (IFAC), which was formed in 1977 and is based in New York. IFAC has more than 175 member bodies, representing approximately 2.8 million accountants in 130 countries and jurisdictions. The IAPC issued standards and statements on auditing and related services in order to improve the degree of uniformity of auditing practice and related services throughout the world. The IAPC works closely with its members and national standard setters in order to gain acceptance of international Standards of Auditing (ISAs). Member bodies have increasingly sought to align the national position with the international positions IFAC and the IASC have gained influence and recognition. Standard setters increasingly refer to the international position in their consultative documents as authoritative support for a particular view. International auditing and accounting standards do not at present override......

Words: 2240 - Pages: 9

Premium Essay

Auditing

...AUDITING A RISK-BASED APPROACH TO CONDUCTING A QUALITY AUDIT 9th Edition Karla M. Johnstone | Audrey A. Gramling | Larry E. Rittenberg CHAPTER 5 PROFESSIONAL AUDITING STANDARDS AND THE AUDIT OPINION FORMULATION PROCESS Copyright © 2014 South-Western/Cengage Learning LEARNING OBJECTIVES 1. 2. 3. 4. Identify and compare the various auditing standards that provide guidance on the audit opinion formulation process List and discuss the foundational principles underlying the auditing standards List the phases and related activities in the audit opinion formulation process Explain the concept of accounting cycles and discuss their importance to the audit opinion formulation process Copyright © 2014 South-Western/Cengage Learning 5-2 LEARNING OBJECTIVES 5. 6. 7. 8. Describe the assertions that are inherent to financial statements and explain their importance to the audit opinion formulation process Define audit evidence and describe the purpose and types of audit procedures used to obtain audit evidence Discuss the importance of audit documentation and provide examples Discuss audit activities in Phase I of the audit opinion formulation process Copyright © 2014 South-Western/Cengage Learning 5-3 LEARNING OBJECTIVES 9. 10. 11. 12. Discuss audit activities in Phase II of the audit opinion formulation process Discuss audit activities in Phase III of the audit opinion formulation process Discuss......

Words: 4700 - Pages: 19

Premium Essay

Auditing

...Assignment 2 AU2 Advanced External Auditing Question 2 a) Three specific business strategies that explain eBay’s decision to offer good for sale at fixed prices: 1. Expand into New Markets: With the shrinking market of auction bidders on eBay and a growing market of fixed price buyers, customers may not prefer to go in the direction of purchasing goods in an online auction. Since, in an online auction the customer has to wait till the end of the auction to see which buyer with the highest bid wins that item. Whereas, in a fixed price type of format, there are no bids placed and the price remains constant. Customers may prefer the idea of price stability over waiting to see if they get the item as they may be time-sensitive and want the item right way. Therefore, eBay may want to focus and expand its market to customers who do not prefer online auctions. 2. Fixed price “Buy-It-Now” format is beginning to dominate eBay and is a key to future growth. Fixed price items make up of 42% of the gross merchandise sold on eBay. Over the past six years, this fixed price format has been growing at a faster rate than auctions. (Trouble at eBay) 3. Meet consumer expectations in the marketplace by matching its competitors who also offer products at fixed prices online through their websites. Customers who are not interested in purchasing goods in online auctions will then purchase goods from eBay at fixed prices. Since eBay acts as the ‘middle man’ the......

Words: 4140 - Pages: 17

Premium Essay

Auditing

... AUDITING THEORY TESTBANKS / REVIEWERS 1. When an auditor believes that an understanding with the client has not been established, he or she should ordinarily a. Perform the audit with increase professional skepticism. b. Decline to accept or perform the audit. c. Assess control risk at the maximum level and perform a primarily substantive audit. d. Modify the scope of the audit to reflect an increased risk of material misstatement due to fraud. 2. An auditor should design the written audit program so that a. All material transactions will be selected for substantive testing. b. Substantive tests prior to the balance sheet date will be minimized. c. The audit procedures selected will achieve specific audit objectives. d. Each account balance will be tested under either tests of controls or tests of transactions. 3. Which of the following fraudulent activities most likely could be perpetrated due to the lack of effective internal controls in the revenue cycle? a. Fictitious transactions may be recorded that cause an understatement of revenues and overstatement of receivables. b. Claim received from customers for goods returned may be intentionally recorded in other customer’s accounts. c. Authorization of credit memos by personnel who receive cash may permit the misappropriation of cash. d. The failure to prepare shipping documents may cause an overstatement of inventory balances. 4. Accepting an engagement to examine an entity’s......

Words: 24671 - Pages: 99