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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Safety Management and Audit
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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Safety Management and Audit
 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).
identifyi
ng the
need
making
calender
informing
departments
providing the
proposal of audit
forming
an audit
team
starting the
audit program
submitti
ng the
audit
report