Auditing Concepts and Changing Environment †Myassignmenthelp.com

Question: Discuss about the Auditing Concepts and Changing Environment System. Answer: Introduction: This is a literature review on the Ansel company of Australia. The company is involved in the manufacture of rubber products such as tyres and footwear, Ansel is a large company in Australia that has a large percentage in the Australian stock exchange. The literature details on the operations of the company and the software used within the company. There is also a review on the companys accounting software installation and how the software will get to work. The problems in the current system and how the software will change the problems in the system, as well as bring about efficiency in the company. With Ansel being a big company in the Australia market, there is also the concern about its market share and the characteristics if the market is serves. Ansel has a large customer base due to its quality products and the ability to engage in large scale marketing campaigns that get them a large number of customers. They are able to beta competition from other existing competitors in the market as well as emerging competitors. This is efficiently done through instilling a culture of loyalty among the customers who chose Ansel products above the competitors product. Ansel has a large revenue and thus is able to finance its expense with ease. This refers to how the organisational components and activities are conducted(chalmers brother, 2015). This is how the management is organised and how the information and resources flow within the organisation. Ansel is organised systematically with a management that is hierarchically arranged from the top management to the low level management. The top level management are involved in making long term strategic plans of the company and coming up with long term solutions to the company(champlain, n.d.). They are also involved in coming up with financial projections of the company. The next level of management is the middle level management who are responsible to ensure that the plans set by the top management are implemented. They are also important in that they act as a link between the low level management and the top management and are allowed to make semi structured decisions for the company(je, 1999). Low level management are at the bottom of the managerial hierarchy. These mana gers have the responsibility of coordinating and supervising the daily routine jobs in the company. They are allowed to make structured decisions and are the link of the workers to the middle level management. The low level managers are faced with the issue of supervising workers with the span of control being large for every manager thus poses a supervisory challenge on them. There are the company employees who are responsible for the operations of the company. They are organised in formal and informal groups. The formal groups are mostly used for the worker and manager interactions while the informal relations are for the inter worker relationships.(larry E rittenberg, n.d.) Operational problems There is operational inefficiency caused by too much freedom given to the workers and their informal groups. The workers are allowed to work without much supervision and thus end up being reluctant on their work and not observing the quality standards set by the company(kotler, 1988). This results to faulty products and also delays in the production process and the company production not observing quality standards. The informal groups have the tendency of giving the workers a false sense of security thus resulting to them not following the policies of work and the poor performing workers are not easily identified because they are not flagged by their colleagues for the fear of being labelled as the whistle-blower within the group. There are errors in production processes due to much reliance on a manual system that rather than an automatic system which is able to identify and correct errors made during the processes of the company.(kothari, 2004) The best method of acquiring the system is through having it made for the company specifications that is a custom made system. This process involves either the use of the company information technology experts to create a system or hiring external information technology experts to come up with a system for the company(james michael stewart, 2015). The software is usually made with the collaboration of the software team and the main individuals who will using the system once made. They affected employees have to be part of it so that they can give their inputs on how they would like the system to be and also assist in putting the system into use. The custom made software results to a system that is able to take care of the requirements of the company accounting software as it is made specially for the company activities(champlain, n.d.). Product availing refers to the company having the products in their stores, either retail or wholesale stores(kotler, 1988). The manufacturing department ensures that they produce the products demanded by the customers in large quantities to meet demand. The products are distributed to the retail and wholesale stores near the buyers for them to easily access them. This point also involves intensive marketing of the product to the customers so that they are aware of where to find the product. Product availing is important as it ensures that the customers find the product at their convenience and thus so not buy products from other suppliers.(kotler, 1988) Customer contact refers to the point where the customer and the company interact. This is where the customer enquires about the availability of a product, with quality and quantity specifications(ferrell, 2017). The company confirms the availability of the product at which point the customer can pay for the amounts they desire to buy. The payment is done on cash or credit basis with discounts given to customers who buy beyond certain product quantities.in case of foreign buyers then they are asked to pay for the goods using the Australian currencies.(mizrahi, 2010) Close of sale is the final stage of the process. This point involves the delivery of the product to the customer. The customer company at this point wishes to impress the customer with satisfactory services such as free delivery(slaton, 2007). The after sales services are important in ensuring that the customer buys the products again. The sale is closed when the buyer receives all the products and inspects whether they are of the right specifications. Payments at this point are also finalised for cash payments(ferrell, 2017). Control problems and frauds in the system The control problems in the system is lack of proper supervision. There is lack of proper supervision in the sales and purchasing department which leads to the workers in the department not observing the ethical business processes(larry E rittenberg, n.d.). Lack of supervision results to the workers involving in theft of stock and lack of keeping proper records for the items that are sold and inventory brought to the store. Lack of delegation of duties properly results to the workers not knowing their duties clearly. This lack of clarity in duties brings about confusion among the workers resulting to them competing for the simple jobs and leaving other jobs unattended(mizrahi, 2010). The fraud in this system are the purchase and the sales fraud. Purchase fraud is done when the new inventory brought to the company is stolen by the department employees and then alter the purchase records to reflect that the stolen items are still a part of stock(champlain, n.d.). Sales fraud is where the products are sold to the customers and are not recorded in the sales journal. This is done intentionally so that the concerned employee can steal from the company through the sales not entered into the sales journal(mordecai lee, 2012). The product will be developed by the company IT experts with collaboration with external IT experts. The purpose of the collaboration is to get advice on how to come up with a better system that is in line with the changes in technology. The internal team has all the knowledge about the system and thus it is their responsibility to come with the software by following the template provided by the user departments. The employees affected by the system are also involved in making the system so that they are part of it and can give suggestions on how to make the system user friendly. The employees are important in the testing of the system efficiency and to ensure that it is free from defects that were not corrected when the system was being made.(champlain, n.d.) The adoption of the system will be done through training of the employees. This involves taking the employees to seminars where they are trained on how to use the system. The training also involves talks on why the software is important to the employees so that they are able to accept the system fully.the training can also be in the form of bringing the IT experts to work in the organisation so that they train the other workers and enable them see the benefits of the system first hand. This enables the easy acceptance of the system.(james michael stewart, 2015) The current market size The market served by Ansel company is large. The rubber products are widely used in the world such as tyres for the vehicles and shoe wear. They serve a large market because they have extended their markets to outside Australia. This provides a large customer base for them which in return earns them high sales revenue. The Australian high population offers a large home market for their products. Being the top producers of quality rubber products they have the customer loyalty and thus are able to serve the large available customers. Ansel has contracts with car manufacturing companies to supply them with tyres and thus are able to sell tyres on large scale to these companies. Their home market, global market as well as the supply contracts with companies that use rubber for their productions ensure that the market for the Ansel company products have a large market size.it is therefore their responsibility to ensure that they satisfy the customers so as to maintain their current marke t share.(robert l.mathis, 2015) The current market leaders in Australia are Ansel company. They serve most of the countrys rubber needs and are popular among the citizens. The customer hare loyal to the company and its products and give Ansel products a priority when buying the products. They supply their products to retail outlets and wholesale all through the country. This enables their products reach the customers at their convenience. The main factors contributing to their competitive advantage is the speed at which they bring their product to the market. Their products reach the market faster compared to other competing firms and ensuring that the customers access their products quickly. They also have a strategy of having product variations. This helps them to satisfy the different customer needs thus are chosen as number one by the customers. Ansel also ensures that their products are of high quality and thus are able to satisfy the customer needs through products that are reach the consumer specification as well as global quality standards. The three factors ensure that the company cements its position as the leader in the market with a competitive advantage above its competitors who find it difficult to put up with the high competition.(noe, 2014) Recommendations The current challenges in the system are that of lack of training of the users, resulting to them not being aware how to use the system. They find it difficult to enter the information into the accounting software and to interpret the results provided by the system(nigel slack, 2007). This is a challenge that results to the poor use of the software. Moreover, there is a challenge of having errors in the system that come about when the software is being developed. These errors are a headache to the users because the system does not function as expected by them. This is a trouble to the users and causes inefficiency in the operations of the system(nigel slack, 2007). The best way to avoid the error challenges is to ensure that the system is free from errors during development(nigel slack, 2007). This is done through proper testing of the system to identify the errors in the system and correct them early. Proper planning of the system development procedure is also a requirement in ensuring that the system is free from errors. Additionally, the employees are properly trained on how to use the software and how to interpret the results. This enables the ease of use and also embracing the system fully with its functions. Therefore, the workers are able to adopt to the use of the system easily(mordecai lee, 2012)(champlain, n.d.). References Chalmers brother, v. K., 2015. Leadership excellence. S.l.:new possibilities press. Champlain, j. J., n.d. Auditing information systems. Carlifornia: wiley. Ferrell, o. ,. H., 2017. Markrting strategy ,7th edition. In: markrting strategy ,7th edition. Texas: south western cengage learning, pp. 298-697. James michael stewart, m. C. G., 2015. Certified information systems security professional. S.l.:sybex. Je, c. D. A. D., 1999. The appreciative inquiry handbook:for leaders of change. S.l.:s.n. Kothari, p. S., 2004. Corporate accounting. Massachusetts: sloan management. Kotler, p., 1988. Marketing management:analysis planning and control 6th edition. Englewood cliffs: nj:prentice hall. Larry e rittenberg, b. J., n.d. Auditing:concepts for a changing environmen. California: south western college. Mizrahi, j., 2010. Fundamentals of writing for marketing and public relation. In: fundamentals of writing for marketing and public relation. New york: business expert press, pp. 389-789. Mordecai lee, g. N. S., 2012. The practice of government public relations. S.l.:crc press. Nigel slack, s. C. J., 2007. Operations management. In: operations management. Madrid ,spain: pearson, pp. 536-577. Noe, h., 2014. Human resource management. S.l.:mcgraw hill education. Robert l.mathis, j. H. J. R. V., 2015. Human resource management. S.l.:south western college pub. Slaton, h., 2007. Manufacturing employees. New york: vault.