Risk Management

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



Jin informed you that since Greenlee employs a variance compendium process for
evaluating production efficiency, the information in his system is completely free-lance of the main
accounting system. The process of reviewing product costs includes an analysis of essential versus budgeted
cost as established by Jin. Variance analysis is performed and reported 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: Orderessay



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