Legislation, Communication Plan, And Environmental Audit Planning

Question

Public governance performance and accountability act 2013 covers the activity of auditing dangerous goods storage, waste segregation and noise. The legislation ensures protection against exposure to hazardous and other types of dangerous goods. Proper disposal of waste material is also ensured and protection against noise pollution.

Authority and enterprise requirements pertinent to the operations of the workplace are identified and followed

Q2. Identify which area (area from the macro perspective: receiving bay, storage, despatch, dangerous goods) within the warehouse you are auditing and identify the relevant authorities involved in that aspect of the operations. Include in your answer; which enterprise requirements are important to the operation and what tools are you going to use to monitor the performance of that area.

In the area of handling dangerous goods, the relevant authority includes supply managers as well logistics and store managers. Some of the enterprise requirement important to the operation are; protection and safety, availability and accessibility and integration. Tools used will include getting constant feedback from employee through use of suggestion box to review often the operational processes in that area. (Samattapapong, 2017)

Practices and facilities required to be audited are identified and implications of non-conformance established

Q3: What facility (facility from the micro perspective: receiving process from one supplier, dangerous goods store – gas cylinder storage, despatch process to a particular customer or industry sector) are you going to audit and if you find any non-conformances within the process or the operation; what are the implications or results going to be for the operation?

I will audit dangerous goods store and any non –conformances identified, for example, body injuries and poor health caused by the dangerous goods, for example, lead and mercury .The non -conformance will be reported to the management and operational activities within that field will be suspended for some time .The non -conformance will be reported and immediate measures taken afterwards .corrective measures and should be follow systematically.

Technical and/or calibration requirements for audits are noted and, where necessary, appropriate support personnel are identified

Q4: Identify at least two Technical and calibration requirements that can be checked in an audit

Answer

Operational recalibration.

Operational precision checks.

Work schedules are investigated to identify appropriate schedule for audit

Q5: What considerations need to be taken into account when planning an audit?

Please tick the appropriate answers. You can tick more than one.

Add tick mark in the following cells

Do the audit when it is convenient for you

The audit needs to be done according to the licencing schedule

The audit needs to be done on schedule because audit results need to be done within a timeframe to allow other audit results to be completed for an overall revue

Audits should be scheduled for quieter times when and if this is possible

Audits needs to be scheduled when resources are available

Audits need to be scheduled when the appropriate human resources are available

Audits need to occur immediately if there has been an incident where processes are now out of control

    1 Audit timings are planned to ensure that relevant procedures are conducted within workplace agreed time intervals and timeframes

    Q6: What tools are available to the company in preparation of an audit, so that:

    The company can use its’ resources effectively and efficiently

    Plan time and resource allocation for the audit process

    Ensure that the necessary Human, mechanical, administration, measurement tools and processes can be available at the right time and place for the audit

    Conduct a Cause and Effect exercise

    Plan a Trial to enact a solution to a problem

    Risk Analysis or Risk mitigation process

Development tool such as Namecheap and email on acid helps the company to plan a trial to get problem solution.

Operational tools such as eshares, google apps are used to conduct a cause and effect exercise.

Customer support tools such as grasshopper, inspeclet and intercom are used toplan a trial to get solution to a problem.

Accounting and finance tools such expensify and fresh books are used for risk analysis and identification of mitigation measures as well as ensuring the necessary human mechanical administration measurement tools and processes can be available at right time and place for auditing.

2.3 Contact is made with appropriate personnel and appointments for the audit are made

See Examples of Documentation

Q7: What are the required elements for a successful communication plan? Your plan needs to communicate to the various stakeholders about your intentions to organise, conduct, and assess the results of an environmental audit.

Understanding the communication problem that your our organisation faces for example if there is a lot of flow of information and employees are unable to determine the urgent and important information or there is little flow of information to employees

Goals should be set for the internal communication system as this will determine if the communication will be effectiv

Consider the method of communication once the communication goals are established while keeping in mind the kind of stake holders you have in the organisation and best channel to approach them.

Create compelling content that you will present to investors which may involve pulling content internally from the company employees.

Mobile communication should then be utilized to help reach stakeholders.

2.2 Audit frequency is adjusted to ensure minimal disruption to the workplace

Q8: What things do you need to consider when planning an environmental audit so that it does not disrupt the workplace activity any more than it has to?

Audit preparation should be done in advance and all past programmes should be reviewed and corrective action taken before auditing. (Mat Zain, Zaman & Mohamed, 2015)

Company federation requirement should be reviewed as well as its state and location the  organisation should become familiar with inspection of documents as well as requirements of training

    1 Operational procedures and assessment methods for the environmental audit are confirmed with affected personnel

    Q9: When considering the methods to be used in an environmental audit, how do you communicate these to the relevant stakeholders and gain their support.

One must understand the controls in the business which includes assessing practices and formal procedures, monitoring and keeping of record, maintaining and inspecting programmes.

Weakness and strength of internal controls should be assessed.

Evidence should be gathered by audit team and it should attempt and verify that control and steps perform expected functions. (Reddy, 2012)

Observations and interviews are conducted with (any) required approved third party

Identify Area and Relevant Authorities

Q10: In regard to your chosen topic to audit, please list the third party personnel that you may need to either observe of interview.

Example: if monitoring noise emissions in a warehouse operation, you may need to interview the maintenance manager in charge of forklift servicing if noise emissions are outside the permissible range.

You need logistic manager to monitor dangerous goods segregation from the warehouse to the market.

Risk and mitigation manager is needed also to come up with mitigations that govern poisonous goods, for example, chemicals.

3.3 Documentation of observations and interview responses is completed

Q11: In regard to question 10, what evidence is required to provide evidence of third party interviews of discussions took place.

Evidence include written information such as reports and minute writing.

The interview may be recorded and stored in audio files.

Records of interview should be prepared and the interview individuals should sign and written statements should be obtained.

Notes take by invigilator or auditor during the interview should be kept.

Outcomes of the audit process are compared to workplace procedures

Q12: As part of the audit process, the auditors need to compare the results of the audit to the actual workplace practice and see if there are any discrepancies. How would you suggest that you conduct this process and why is it necessary in the first place?

I would suggest that comparing audit process to workplace procedure is performed at organisation departmental level so as to measure extend to which the departments will be willing to correct their operation system ,what process are put down to ensure do their assigned responsibilities deadlines and their limitations.

Q13: What process would you put in place so that the results of the audit is able to be discussed with relevant personnel and stakeholders?

There should be proper communication between stakeholders and auditors as well as those have responsibility of corporate governance.

User confidence should be enhanced in financial position statements as well as auditors reports.

Management should increase attention and financial statement preparation should be disclosed showing relevant reports.

Financial reporting should be improved in the interest of the public.

Facility to Audit and Non-Conformances

Process should be improved, enhancement of informational value and quality of audit.

4.4 Reports are forwarded to appropriate personnel for action

Q14: In the scenario where it was found that the Dangerous Goods Segregation Regulations are not being met and that various instances of large quantities of goods classification 4.3, 5.1 and 5.2 are being stored in close proximity to each other; and recently, this has caused an explosion resulting in a concrete wall collapse: who are the specific personnel inside and outside your business that need to be informed?

Include in your answer; a basic description of these goods and why they are not to be stored in close proximity. Example: What is a 4.3 classified good? What is a 5.1 classified good? What is a 5.2 classified good?

Loading and warehouse personnel inside the organisation as well as logistic personnel outside the business need to be informed when dangerous goods segregation are not met. Some of dangerous goods include harmful chemicals and metals ,for ,example, lead, mercury and sulphur ,dangerous gases and inflammable gases as well as harmful liquids .when stored in close proximity to people they may cause poor health conditions such as affecting respiratory system. (Rodrigues Sobrinho & Bortolon, 2016)

Section W-Q15: Reports of non-compliance are documented including options for environment What is the process for documenting all the results of the audit and how are they to filed at the conclusion of the audit?

Documentation of auditing processes include document inspection and confirmation including details test, test of control and operation effectiveness which include inspection of inspected items. Inspected items identified may be satisfied with the source of selected items and selection criteria .The record of who performed the audit work and completion date including those who reviewed should be written. The auditor also has clear responsibilities f assembling the final audit file in time.

Q16: What needs to occur with the non-compliance documents at conclusion of the audit?

Auditors should have information of the situation at hand ,that is, identifying and giving good respond on non- compliance for example, fraud case. The auditor should communicate effectively with those responsible with the governance. If it concerns group audit, the auditor should assume his responsibility and report the non -compliance instance to group unless it is prohibited by the law or legislation from doing this.

Technical and Calibration Requirements

The auditor should determine whether further action is needed after assessing how appropriate and effective the response of management was

The auditor should determine whether to present the matter to the responsible authority or not and this is depends on the problem at hand the harm it might cause to investors and creditors .Disclosing of information might also be against the laws and regulation.

It is important that the auditor documents information and compliance processes with NOCLAR guidance including and not limited to management response, judgement arrived at and taken decisions.

Q17: As part of a businesses’ sustainability program, the auditing process plays a major role in implementing and reviewing policy settings. Briefly explain the how auditing business practices supports the sustainability of a business.

Proper auditing system helps the company to attain corporate goals since it is used to monitor and identify illegal transactions, used for measuring business and employee performance and maintaining of business documents such as transaction receipts.

Auditing helps the company to prepare financial reports to be used internally in business itself or externally by government, stakeholders and tax bodies. It is used internally by the business managers to determine the allocation of resources by the management and this support, sustainability of the business.

Good auditing system reduces risks in business including and not limited to informational risk misappropriation of funds, mismanagement of business assets as well as risk of employee turnover.

Q18. What is the effect of poor business practices on the long term sustainability?

The following are the effects of poor business practices on long term sustainability

Failing to monitor company expenses may lead to high taxation since that means that any business expense can be deducted at tax time.

Failing to save transaction receipts and business documents may lead to failure of business since one may not be able to prove how the money was spend and if it was spend on business purpose.

Most small business people tend to mix personal funds and business funds and this makes it difficult to monitor business revenue.

Some business operators are tend to be busy running day to day operations and fail to file taxes on time, can lead to big fines and hindering growth of business.

Failing to pay employees on time and consistently may lead to employee turnover and this hinders growth of business and sustainability.

Failing to monitor labour in a business through auditing often to see if more hours are being spend might lead to stagnant growth of business. For example employee being unproductive might be a signal of them being overworked.

References

Mat Zain, M., Zaman, M., & Mohamed, Z. (2015). The Effect of Internal Audit Function Quality and Internal Audit Contribution to External Audit on Audit Fees. International Journal Of Auditing, 19(3), 134-147. doi: 10.1111/ijau.12043

Reddy, D. (2012). Tourism and Environmental Audit. Paripex – Indian Journal Of Research, 3(2), 128-129. doi: 10.15373/22501991/feb2014/40

Rodrigues Sobrinho, W., & Bortolon, P. (2016). NON-AUDIT SERVICES AND AUDITOR INDEPENDENCE IN AN ENVIRONMENT OF LOW INVESTOR PROTECTION. Revista Universo Contábil, 107-128. doi: 10.4270/ruc.2016430

Samattapapong, N. (2017). An efficiency improvement in warehouse operation using simulation analysis. IOP Conference Series: Materials Science And Engineering, 273, 012013. doi: 10.1088/1757-899x/273/1/012013