Title | Presentation Script |
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Course | Auditing And Assurance Services |
Institution | University of Wollongong |
Pages | 2 |
File Size | 34.3 KB |
File Type | |
Total Downloads | 26 |
Total Views | 174 |
This is my presentation script...
Thank you So now I am going to discuss the 3rd and 4th audit issue of One Tel. The 3rd audit issue of One Tel would be One Tel’s internal control is poor and lacks formalization It includes their billing system, financial accounts and other operations and activities But now im going to emphasize more on One Tel’s billing system Their billing system was built by young developers during the start of their company and it was initially intended to serve a small customer base However, the billing system was being built under intense pressure and urgency with an inflexible design So, soon as the company and its customer base grow big, the billing system are failing to cope with it and those IT developers are unable to improve and maintain it due to its inadequate database design. As a result, some of their clients even have to wait for a few months to get their invoice or other financial documents from One Tel.
According to ACCA a good internal control allows the company to conduct its operations and activties more efficiently and free from disruptions. Further, company are able to safeguard their assets and resources such as inventory better And it enables the company to detect and frauds or misappropriation of assets more easily
This is actually the utmost reason that causes One Tel. to collapse and all the other audits issues including the 2 chin wen said just now were actually caused by this audit issue, One Tel’s poor corporate governance.
Firstly, there is an imbalance of power between the board and the executives as the joint CEOs of the company are having too much power over the company This can be shown from the fact that the CEOs presides nearly half of the board meetings in year 1998 and the CEOs were having close relationships with the boards So this is enough to show us that the CEOs are able to influence board’s decision quite easily Furthermore, the company’s structure is awful and highly centralized due to the CEO’s autocratic style of leadership Other than that, the company doesn’t provide an organizational chart, which leads to an ambiguous relationship between the employees
Since corporate governance can be said as a system of controlling a company, a good corporate governance means the boards and executives are balanced, competent, and excellent.
Thus, this allows a better control on the company and it increases the overall efficiency of the company.
Moreover, it allows the company to detect errors in operations easily and leads to a smoother, disturbance-free operation....