Service provided by the organization
Discuss about the Importance Of Audit In The Organization.
Information system is a system that is organized in perspective of the infrastructure that it uses. Information system basically deals with the retrieving, collecting. storage, modulation and circulation of the data that are stored in the information system. The process includes the filtering the collected data and communicate the information around the desired clients that are included in the process. To be precise the information system is the group of component is that communicate with each other in order to generate information. The main focus of the information system is to stay focused in the aspect of internal related issues than that of the external related issues of the organization. This report will discuss about the services of the organization. This report will further discuss about the uses of Information system in the organization. This report will also discuss about the general management control methodologies that are undertaken in order to control the risk that are present in the functioning of the project. This report will also state the different types of the application controls that are being used in the organization. This report will also provide the comparison between the General management and the application control management. This report will also provide the factors that are adequate in terms of the risk identification, assessment of the risks and the techniques that are inhibited in order to control the risk factors of the organization. This report will also discuss about the importance of Audit in the organization.
Freight Exchange is the name of the company with which the report will discuss about throughout the course.
Freight exchange is the courier company, which is considered to be one of the leading courier companies in Australia. The services that are provided by the company are as follows: –
- Regional Shipments
In this functional methodology Freight Exchange carries forward the task of shipments that are within the regional boundaries. The location and the destination are in the same region this aspect helps the company to provide efficient service to the clients of the company.
- Full truckloads
Truck loading has also been a major source of income for the Freight Exchange. As the transaction that happens in the methodology of the truck loading is very profitable due to the fact of loading the truck includes the process of delivering the products that are being loaded in the truck.
- Courier services
Use of Information system in the organization
Courier services has been the oldest service that was started by the company Freight Exchange and has been proven to be beneficial and profitable for the company which intended on the growth of the company to various hemisphere of the services and increase the job diversity off the business organization.
- Unusual shipments
Freight Exchange has also been performing tasks that are not within their scope of boundaries. The company charges extra for the excess distance the organization covers with respect to the given boundary of the product. This process of delivering the product charging high amount of serge earns a great amount of profit for the company.
Information system plays a vital role in the processing of the service that the company provides in the field of transaction and communication. The information system find its importance in the organization due to the aspects of the following: –
- Reducing the errors in the process of providing services
The company has been highly benefitted by the technology of information system as the information system provides the data that are required for the processing of the transaction that acts as a major service for the company (Bessis, 2015). The official software makes usage of the information system to store the data of the clients that are to be delivered with the deliverable that the destined locate in the correct time.
- Usage of GPS systems
With the help of the platform provided by the information system the business organization can the full use of the GPS system in order to gain access to the transport culture of the places where the delivery is to be made. This technology that uses the platform of information system provides efficiency to the organization as the operational manger of the company can check the traffic status of the road and deal with the transportation facilities during the delivering of the product.
- Promoting the business online
With the help of the information system, the business of the Freight Exchange sis set up in the internet (Wynne, 2016). The platform that is provided by the information system that enables the company to start the business online has ensured a lot f profit for the company as the popularity of the service provided by the company has increased since the increase in the usage of the social platform by the company.
GMC of Freight Exchange has been very much efficient as they are well concerned about the General Management of their company. GMC consist of the managing of the human resources as they are the major factors that acts as the positive end of the company that is running in a positive node. However, if GMC performance fails and the human resources fail to work positively then the risk that s allotted to the company is huge. GMC takes care of the risk caused due to the illness that affects the stability of the employee (Sweeting, 2017). GMC also deals with the risk can also be caused due to the lack of motivation if the employee leading to the fact that the employee leaves the company which affects the company adversely.
General Management Control
Application control deals with the aspects such as the checking the completeness of the project that has been under the process of freight Exchange (Bevrani & Hiyama, 2016). AC also takes under consideration of the fact that the validation of the project is maintained. The authorization of the project undertaken by the company is also checked in case of the Freight Exchange in the process of the AC.
The main difference between the General Management Control and the Application Management control is the fact that GMC consists of the factors that are concerned regarding the human management of the organization. Human the company deals with resource maintenance is one of the most important issued of the GMC (Chance & Brooks 2015). In case of the AC the company deals with the production of the company. The major concern of the AC department is to check the efficiency in the terminology of the application of the project that has been taken by Freight Exchange.
The risks that are present in the functioning of the project are as follows: –
- Operational Risk
The risk that are operational related are the most feared threat that affect the company in a bizarre way and the stature of eth company can change in case of the operational failure for the company. The risks are cussed due to the fact that the products might be delivered lately which will disappoint the client directly, quality check of the product is also another process that the threat appears in the process of manufacturing of the products (Mortimer & Mortimer, 2015). In case of depletion of the quality of the product the company loses the brand loyalty and the stature of the company decreases.
- Political Risk
The organization that does not have good relation with the government faces major issues during the course of their business (Lam, 2014). The risks the company faces is due to the fact that the company higher authorities are not always well aware with the change in the norms and the taxation of the government policies. In case of having a bad relation with the government institutions the company faces a lot of unwanted problems regarding the good will of the company that directly affects the growth of the company.
In case of audit planning of Freight Exchange following steps are followed: –
- Discussion with the clients
- Reviewing the previous project audit of Freight Exchange
- Discuss about the project development plan with the clients
- Sharing of financial statements of the company
- Discussing about the non audit personnel of the company
- Determining the staffing of the audit
- Taking assistance of the specialist to carry forwarded the relation between the internal auditors and the clients.
- Scheduling the dates with the clients
- The employee related risks are governed by the process of providing proper incentives to the employees of the company in order to keep the employees motivated and provide them proper insurance scheme for the employees so that the employees can have proper medical attention during the time of illness (Fayol, (2016).
- Operational manager must be employed by the organization in order to deal with the operational issues that might take place efficiently (Lachmann, 2014).
- Lawyers must be hired by the organization in order to stay updated with the norms and the taxation schemes of the government and keep the company free form issues any kind of legal charges regarding the norms of the governments.
Conclusion
From the above report it can be concluded that Freight Exchange has been immensely benefitted by the General management Control and Application control methodologies as the company is able to identify the threat factors and control the potential threats which has lead to the growth in status of the company.
References
Bessis, J. (2015). Risk management in banking. John Wiley & Sons.
Bevrani, H., & Hiyama, T. (2016). Intelligent automatic generation control. CRC press.
Chance, D. M., & Brooks, R. (2015). Introduction to derivatives and risk management. Cengage Learning.
Fayol, H. (2016). General and industrial management. Ravenio Books.
Grote, G. (2015). Promoting safety by increasing uncertainty–Implications for risk management. Safety science, 71, 71-79.
Harrison, F., & Lock, D. (2017). Advanced project management: a structured approach. Routledge.
Hopkin, P. (2017). Fundamentals of risk management: understanding, evaluating and implementing effective risk management. Kogan Page Publishers.
Lachmann, G. V. (Ed.). (2014). Boundary layer and flow control: its principles and application. Elsevier.
Lam, J. (2014). Enterprise risk management: from incentives to controls. John Wiley & Sons.
Mortimer, S. T., & Mortimer, D. (2015). Quality and risk management in the IVF laboratory. Cambridge University Press.
Otley, D. (2015). in Management Control. Critical Perspectives in Management Control, 27.
Sweeting, P. (2017). Financial enterprise risk management. Cambridge University Press.
Wolke, T. (2017). Risk Management. Walter de Gruyter GmbH & Co KG.
Wynne, B. (2016). Misunderstood misunderstanding: Social identities and public uptake of science. Public understanding of science.
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