Safety Management and Audit Assignment: Answers

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

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Safety Management and Audit
Table of Contents
Answer to question 1:......................................................................................................................3
1. Difference between the external audit and internal audit are stated below:.........................3
2. It is important to know about the knowledge each of the employee has in the company for
developing a complete audit team:..............................................................................................4
Answer t question 2:........................................................................................................................6
1. Auditing program planning in a stepwise manner................................................................6
2. Audit schedule of Cromwell Pte Ltd....................................................................................8
Answer to question 3:....................................................................................................................10
Checklist of audit evidence for this organization......................................................................10
Answer to question 4:....................................................................................................................14
Checklist items of internal audit physical inspection................................................................14
Answer to question 5:....................................................................................................................18

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Answer to question 1:
1. Difference between the external audit and internal audit are stated below:
 Objectives: the objective of the external auditors is to first prepare financial
statement, analyze it and then verify that the shown figures are true and accurate
or not. The objective of internal auditor is to do routine review of the activities
and process in that company which gives the company a scope for maintaining the
financial statement and improve performance (Davidson, Desai & Gerard, 2013).
 General definition: internal audit was set to analyze along with the calculation of
their control which involves all the accounting process and governance. They
makes sure that every guideline, regulations and laws are followed thoroughly
which will allow them to post the financial statement properly. External auditors
are those who works to find out that the company has given their full detail of
their financial position and maintained their bookkeeping records, bank balances,
financial transactions and bank balances.
 Audit is conducted: external auditing is conducted mainly by third part of that
company and internal audit is conducted by internal employees of that
organization’s internal audit department (Coetzee, & Lubbe, 2014).
 Responsibility of reporting: internal audit has to report directly to board of
directors because they are totally independent of the management (Baharud-din,
Shokiyah, & Ibrahim, 2014). However the external audit can inform stakeholders
in private company and legislative body if it is a public sector company. They are
also not answerable to the management.

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 The ultimate users: the users of internal audit are the management of that
company and the users of external audit are the shareholders, the public at large
and etc.
2. It is important to know about the knowledge each of the employee has in the
company for developing a complete audit team:
 Every audit team must have one director and the audit team leader can be that
director.
 There must be three members to choose from different departments of the
company like the senior supervisors from research department, quality assurance
department and manufacturing department. However, all the chosen members
must have general knowledge regarding the auditing process and all the
accounting steps which are involves (Guénin-Paracini, Malsch & Paillé, 2014).
 Among the selected members it is important to select one native resident of that
country because that person understand the language of that country. One of the
three members should thoroughly understand and bale to speak that language.
 Other two members should be selected from the accounts and finance department
because they will have enough knowledge of how to prepare the audit report and
they can help other members as well regarding the accounting process.
 One scientist and one engineer should also be included into the auditing team so
that they can discuss about the current situation of Cromwell Pte Ltd and also
what will be best for the production of that company and etc.

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Safety Management and Audit
 One member each from OECI A&D Coordinator should also be selected so that
they can review the peer activities of the company during the auditing process.
Hence, the auditing process will involve one senior supervisor from different departments
who will have general knowledge regarding the auditing process. They should have the
potentiality to become one of a member of internal auditing process. It is also important that the
director or the audit team leader should be present during the process of auditing because he can
assist the members and also make sure that there is no fraud statements going on which will not
present a true picture of the company in front of the stakeholders and other members (Toppr-
guides., 2020).

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Safety Management and Audit
Answer t question 2:
1. Auditing program planning in a stepwise manner
i. Identifying the need: the auditor must visit and then analyze the different
needs of different departments where the auditing process should be done. The
main objective of this step is to investigate for any fraud or any loophole into
the system (Earnhart & Leonard, 2013).
identifying
the need
making
calender
informing
departments
providing the proposal
of audit
forming an
audit team
starting the audit
program
submitting
the audit
report

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Safety Management and Audit
ii. After the first step, the auditor will develop one auditing calendar which
contain the specified dates in which the auditing program should take place
and it also shows the frequency of the activity. This frequency totally depends
upon the performance of the company.
iii. Then the third step is to follow the calendar an inform the respective
departments regarding the auditing program so that if there is any lack then
they can fix it before the auditors see it and records for penalty (Oussii &
Taktak, 2018).
iv. The next step is to inform the board of directors about the current situation of
the departments and allow them to organize an audit program which will help
the auditors to investigate the departments thoroughly and provide knowledge
regarding the irregularities and how it can be minimized.
v. The next important step is to form an audit team who will perform the audit
program. This audit team will consist the important members who will have
enough knowledge regarding the process and they can provide suggestions to
be followed after the audit report is submitted (Ask the Standards Experts.,
2020).
vi. Sixth step involves the analysis of the financial information and investigation
of the same. The auditors will extract the data from the respective departments
to put them into the audit program.
vii. The last step is to submit the full audit report to the board of directors and
arrange a meeting which will help the company to implement policies to
improve the situation of the production (GRF CPAs & Advisors., 2020).

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2. Audit schedule of Cromwell Pte Ltd
The audit leader is given only two days from the management of the company. The
audit process is hectic and it is quite difficult to process the activity into just two days
(Corporate Finance Institute., 2020). Hence, the audit leader must proceed
systematically to save maximum time. The steps are following:
I. The first step is the investigation process where the audit leader will start the
selecting two members who will be a part of the audit team. Here the
investigation will be related to the organizational risk and different goals in
market. This will be in the 1st day.
II. That day only the audit leader will select three or more departments from the
company so that one member can be selected form each department who can
clearly state the internal as well as external risk of their respective
departments.
III. The next process in the same day will be to convey and revise the framework
to the selected members for audit team. For this the audit leader must have
good knowledge of integrated framework (Susmanschi, & Georgescu, 2014).
IV. The last work of the first day is to gather important documents which will be
useful for the purpose of audit program. This documents must be collected on
an emergency basis (Tutorialspoint.com., 2020).
V. The next is very vital and hence on this day each member of the team should
maintain the deadline and work accordingly. Meeting will also be held at the

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same day so that required policies can be noted along with the implementation
process.
VI. The meeting will have stakeholders and the board of directors who will
analyze the report and discuss about some suggestions which can be
implemented into the organizational system for the betterment of the company
and the production quality can be improved accordingly (Chambers & Odar,
2015).

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Answer to question 3:
Checklist of audit evidence for this organization
Questio
n no.
Question/Instruction Yes No NA
1. General controls
Do each and every facility and department of the
organization operates in controls stage
2. Organizational & management responsibilities
Sec 211.22(c) does the organization record all the
assurance procedures?
Sec 211.22(a) does the organization have separate
entity from the quality assurance department?
Does the organizational unit works under the corporate
quality or facility policy?
Sec 211.22 does the quality assurance department
reviews routinely the production record to make sure of
the procedure that is followed with accurate
documents?
3. employee job training, orientation and quality
awareness
Sec 211.25 (a) does the employees of that organization
get enough orientation and training similar to the

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permanent employees?
Sec 211.25 (c) does the employees get considerable
retaining on SOP while there some change in the
procedure?
On-going and periodic training of the organization is
indicated accurately or not?
Sec 211.34 does every consultant hired for providing
training to the employees and advising them how to
work during the manufacturing process, holding or
packaging and giving allowance for releasing the
products are generally asked to provide evidence or
their experience, training and their educational
qualification?
4. Plant safety and security
Does every details of the employees written during the
process of safety training like their name, type of their
training process, their training date and it should also
contain the name of assigned trainer?
Are all the entries monitored and restricted?
Does it involve corporate security and safety program?
Does the facility includes format written security
policy?
Does the organization have 24 hours of security person

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Safety Management and Audit
available in the organization?
5. Cromwell’s internal audit/quality program
Does the employees have access to every copy of
facility document of that organization?
Do all the business unit and facility have policies
written in a specific format into the quality of
accounting of that organization?
If YES then provide the
detail:_____________________________________
Does the SOP contain the details regarding the person
who will conduct and their qualifications like
experience, training and education?
Does the SOP explain the scope and frequency of
audits and how the audits should be written in
document?
6. Quality cost program
Does the facility specified is capable of minimizing the
cost and make some conscious efforts for the
betterment of the quality of products in the
organization?
Does the details of every employee who have
participated into the program have specified so that the
authenticity of their detail can be checked by the

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seniors and program conductors for their convenience
of work?
7. Design control
Is the design control of the organization not relatable to
the 21 CFR Parts 211 and 210?
Does the design control team have specified every
detail of their team members into the document so that
the authenticity of the employees can be defined?
Is their facility available for 24 hours basis in the
organization so that the employees can avail their
service at any point of time?
8. Facility control
Does the drugs and chemicals are free form any
contamination presented in the facility layout of the
organization?
Sec 211.42 (b) is there required space available in the
facility for typical production volume and their type of
work?
Sec 211.42 (a) are every part of the facility department
–has maintained the system which makes perfect
manufacturing along with holding and testing of the
chemicals and drugs the company have produced and
marketed?

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Safety Management and Audit
The facility which is NOT situated in that location
which reflects the perfect image of the products and
workers that particulate infestations or fumes along
with the matter of drug?
Answer to question 4:
Checklist items of internal audit physical inspection
Questions/instructions Yes/No/NA
A. General – all areas
1. Does the condition of ceiling tiles good and in place?
2. Does the belt and machine guards kept in good condition?
3. Does the areas which are dangerous, contains protective equipment and
warning signs?
4. Does every equipment of the organization maintained properly and any
equipment damage and personal injury is prevented or not?
5. Does the consumption of beverage, food and etc. are prohibited where
required?
6. Does the equipment which is malfunctioned or damaged are tagged with
“OUT OF SERVICE” or not?
B. Storage facility
1. Does the employees separated the empty chemical containers with the
full chemical containers for safety purpose?

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Safety Management and Audit
2. Does the chemicals storage have air tight containers?
3. Does the organization use accurate regulator for the chemical service?
4. Does the employees level the chemicals properly?
5. Are protective valve caps used properly in the place where the chemicals
are not currently used?
C. Equipment of personal protection
1. Does all the employees provided with accurate and authorized training
regarding the respiratory protection?
2. Are all the personal equipment damage and deterioration free?
3. Does the organization provide enough protective equipment to their
employees?
4. Does the employees provided with proper training for how to use the
safety equipment for personal safety?
5. Does the organization maintains the self-contained breathing equipment
properly?
A proper inspection took place in the last month and the below list is prepared which
reflects the current situation of Cromwell Pte Ltd.
Questions/instructions Yes/No/NA
A. General – all areas No
1. Does the condition of ceiling tiles good and in place? Yes
2. Does the belt and machine guards kept in good condition? No
3. Does the areas which are dangerous, contains protective equipment and No

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Safety Management and Audit
warning signs?
4. Does every equipment of the organization maintained properly and any
equipment damage and personal injury is prevented or not?
Yes
5. Does the equipment which is malfunctioned or damaged are tagged with
“OUT OF SERVICE” or not?
Yes
B. Storage facility
1. Does the employees separated the empty chemical containers with the
full chemical containers for safety purpose?
No
2. Does the chemicals storage have air tight containers? No
C. Equipment of personal protection
1. Does all the employees provided with accurate and authorized training
regarding the respiratory protection?
Yes
2. Are all the personal equipment damage and deterioration free? No
3. Does the organization provide enough protective equipment to their
employees?
No
Comment:
After reviewing the physical inspection done in the previous month the audit leader stated
that it shows the true and current picture of the organization. The auditor now needs to keep all
the points and departments in mind while planning for audit program and highlight the lacking
situation in the board of meeting (Cangemi, 2016). These points out the reason of why the
production of the company is lacking the standard of the quality. It is clear from the above list

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Safety Management and Audit
that the workers are continuously ignoring their responsibility and duties which is the main
reason for quality degradation (Quality-improvement-matters.com., 2020).
The lighting condition in the stair area was too dim and no worker bothered to change it.
The wall paint is also ripping off due to the reaction from the chemicals because the containers
did not have any closed lids (Zaman, & Sarens, 2013). The workers also did not shut the
machines off in the lunchtime and they never maintained the precautions and safety measures
which were written in the warning signs. This affected the production, financial and accounting
situation of Cromwell Pte Ltd’s profit.

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Safety Management and Audit
Answer to question 5:
After the audit report is completed, it is time to present the detailed report in the meeting
where board of directors and stakeholders will be present to analyze the performance and find
out strategies and policies for the betterment of the organization. The minutes of closing meeting
prepared by the auditor should involve the below points:
 Thanking the auditees: all the audit members are to be provided a thank you note so that
their work can be clearly recognized by the management.
 Thanking the management: the audit leader must thank the management for allowing
them to conduct the audit program into their organization and successfully helping them
to extract the financial details (AccountingTools., 2020).
 Reminding the auditees with reason of auditing: the accurate reason for conduction of
auditing program should be described properly and also the difference which was stated
in the Cromwell and the management department’s condition.
 Reminding the auditees regarding the standard: the audit leader must specify the
standard of auditing program into the accounts and reasons for auditing. This step is
important so that there is no conflict in the meeting by the members present there.
 Stating regarding the sample of system: it is to be clarified by the audit leader that all
the framework of the system form the sample is maintained. Previous sample can also be
followed by the auditor (Bizfluent.com., 2020).
 Stating the validation: this point means that the auditor must specify clearly if by any
chance he has left any point for analyzing or forgot to note.
 How to present findings: it is important that the auditor specifies the method used for
extraction and analysis of the information. This detail is important for the future purpose

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also. The audit leader can also follow the previous method used for the purpose of audit
program (Key Differences., 2020).
 Confirmation of observation and non-conformities: all observations of manufacturing
department should be clearly presented in the meeting by the audit leader. The details of
every operating department should be specified clearly
 Closed summary: the audit leader was given only two days for the conduction of the
audit program by the management and hence, it is important to provide a summary
regarding the experience and the methods implemented during the process
(Ventureline.com., 2020).
 Final conclusion: after the conduction of the audit report it is important to comment how
satisfactory or unsatisfactory was the process. This will include the working condition for
them and the extraction of the relevant data.
 When the audit report will be received: after the presentation of every detail the audit
leader must state the time when the auditees may receive the original copy of the audit
report for publishing. This detail will contain the audit program date when it was
commenced and the completion date along with that the submission date and the
publishing date (Study.com., 2020).
 Suggestion: it is the important step because the main aim of conducting an audit program
is to provide suggestions to the organization regarding their betterment by the auditors.
The auditor here can suggest them with accurate policies and strategies that can be
implemented into the organization easily which will improve the working condition of
Cromwell, the productivity of the workers can be maximized and the high quality of their
product can be achieved easily (Andersson et al., 2017).

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Safety Management and Audit
 Questions from opposite side: this is the last step which involves questions from other
stakeholders and board of directors (Mazza, & Azzali, 2015). They can ask regarding
clarification of any financial statements and suggesting any idea for the future which can
be implemented. This step is equally important because any confusion regarding the audit
should be cleared by every member present in the meeting (Smallbusiness.chron.com.,
2020).

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