Safety Management and Audit Question Answer 2022

Running head: SAFETY MANAGEMENT AND AUDIT
SAFETY MANAGEMENT AND AUDIT
Name of the Student:
Name of the University:
Author Note:

Safety management and audit1
Table of Contents
Answer to question 1:......................................................................................................................2
Answer to question 2:......................................................................................................................5
Answer to question 3:......................................................................................................................8
Answer to question 4:....................................................................................................................12
Answer to question 5:....................................................................................................................16

Safety management and audit2
Answer to question 1:
1. Basic difference between the internal audit and external audit are following:
 Basic definition: internal audit can be considered as a set to calculate and analyze firm’s
control that includes the corporate governance and accounting process. The auditors
ensures that they are following all the guidelines, laws and regulations so that they can
post the financial statements on-time. Whereas, the external audit is done for the purpose
of recognizing that the company is provided complete, real and true representation of
their financial position maintaining their bank balance, bookkeeping records and financial
transactions or not (Inspired Pharma Training., 2020).
 Objectives: the objectives of internal auditors is to routine review the process and
activities in the company which provides a scope of improvement and maintain the
financial statements as well (Auditnet.org., 2020). Whereas, the main objective of the
external audit is to analyze prepared financial statements of company and verify whether
it shows true figure or not.
 Who conducts the audit program: internal audit is conducted by selected internal
employees of the organization known as internal audit department and the external audit
is conducted by any third party for that company.
 Reporting responsibilities: the reporting responsibility of internal audit can be directly to
the company’s board of directors of that company because they are independent and they
are not answerable for it to the management. Whereas, the external audit has to inform
the shareholders in the Private sector companies and in Public sector companies they
have to inform the legislative body like Parliament. However, they are also not
answerable to the management (Pcaobus.org., 2020).

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 Users: management of the company is the user of internal audit and the users of external
audit are mainly the members, shareholders, the public at large and etc.
2. While preparing the list for audit team, the audit leader have to keep in mind about
the knowledge each team member possess.
 There has to be one director of that team and that person can be the audit team
leader (RCV Academy., 2020).
 Three auditors has to be chosen form the company who are seniors in that team.
However, they have to be from different fields. So one member each from
Chemical manufacturing department, research department and quality assurance
department. It is important that every member must have some knowledge
regarding the audit or auditing process.
 One of those members must be capable of understanding the language of that
country so one of the member must be selected who is the native resident of that
country (Aabri.com., 2020).
 Two experienced auditors should also be present into the team and hence both the
members will be selected form the finance and accounting team who have great
knowledge of how to prepare the financial statements on-time and they will help
the other members as well to understand the auditing process.
 It is also important to include at least one scientist and one engineer into the audit
team of Cromwell Pte Ltd because the firm is manufacturing equipment for
military department which has to be perfect. These members will help the other

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members to take decision on the basis of exact requirement regarding the military
needs and prospects.
 Apart from them, one OECI A&D Coordinator is also supposed to be present
during the review visit so that they can coordinate the peer review activities.
So, the audit team will consist one senior from each department who will have minimum
knowledge of auditing process and the team leader of the internal audit would be the coordinator
of Health, Safety and Environment because he was told to conduct an audit and form an audit
team. Without the presence of the audit leader the audit will not be conducted timely and the
financial statement may consist of some fraud figures (Mihret, 2014).

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Answer to question 2:
a) Step wise audit program planning
Step 1: identifying the need of audit the auditor need to identify the departments and the areas
where auditing needs to be done. Here the auditor will investigate all the department and look
out for any loophole or fraud in the figure of financial statement of that department
(Ehs.missouri.edu., 2020)
Step 2: preparing an audit calendar for how often the audit must be prepared. This will be
prepared as per the need of auditing. If the auditor fees that there is a huge difference between
the actual figure and recorded figure then frequent auditing or quarterly auditing will be
suggested otherwise it can be annually or half yearly.
Step 3: according to the audit calendar prepared by the auditor, the departments will be informed
to maintain their figures (Zhang, Yang & Appelbaum, 2015). The auditor will develop a calendar
identify the need
calender
inform
departments
proposal for audit
form a team
start auditing
submit report