Jertsy Ltd: Auditing and Control in an Australian Clothing Company

This case study analyzes the auditing and control processes of Jertsy Ltd, an Australian clothing company. It examines the company's operational structure, highlighting the autonomy of store managers and the established mark-up system. The study identifies weaknesses within the existing system, focusing on human resources, technology, production, logistics, sales, customer service, and finances. The analysis explores issues like staff turnover, lack of employee training, production inefficiencies, and limited financial resources. The case study suggests improvements, including better management strategies, performance indexes, employee training, and financial planning. Recommendations include maximizing business goals, providing training modules, motivating employees, and removing roadblocks to information access. The aim is to provide a detailed overview of the auditing and control challenges faced by Jertsy Ltd and propose solutions for improved financial performance and operational efficiency.

Running head: AUDITING AND CONTROL IN THE ORGANISATION
Auditing and Control in the Organisation
Name of the Student
Name of the University
Author’s Note

2AUDITING AND CONTROL IN THE ORGANISATION
Executive Summary
This current report has focused on the process of auditing and control in the organisation where
an Australian clothing company, Jertsy limited has been taken into consideration. This study
mainly highlights the effective identification and explanation of the weakness system that has
been associated in the existing system of the company. It also points out the implementation of
the new system which would help the company in achieving their targets along with
recommending certain strategies to the senior managers of the company.

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Table of Contents
Introduction......................................................................................................................................4
Analysis of the organisation............................................................................................................4
Identifying and explaining the weakness in the existing system.....................................................5
Human resource and other area of problem.................................................................................5
Technological area, production and logistics for development...................................................6
Sales area, customer services along with finances......................................................................7
Suggesting improvements in the new system..................................................................................8
Recommendation.............................................................................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

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Introduction
Auditing and control is vital for a business organisation it includes the effective
examination of the financial statement of the company that has been prepared by the
management of the company. Controlling the business firm also points out the effective system
that is associated with the business, and certain standards are required to be implemented in the
business. In this study, Jertsy limited has been taken into consideration which mainly deals with
a range of fashion clothes and managed by autonomous managers. This study also includes the
identification and explanation of weakness associated with the business system of the company.
Certain recommendation and suggestions is to be made for the company for benefitting the
business requirement along with introduction of new strategies that would be implemented by
the senior management.
Analysis of the organisation
Jertsy limited is an Australian company that owns a range of fashion stores along with
state capital of the country. The appointed managers of the company deal with the types of
companies and quantities that would like to be required for the process of buying and selling
products (Alles 2015). The located head office of the company has been established with the
mark up cost that are standard in nature for managing the duties of the managers.
The selling price of the products are to be acknowledged by the managers and the staff of
the stores tends to be younger people that works as part time and results in certain significant
turnover for the staffs. It also points out the high staff turnover rate that does not affect the
booming of the fashion trend among the youth (Appelbaum, Kogan and Vasarhelyi 2017). Jertsy
limited is such organisation that performs their business activities in a more extended way for

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which the company is required to acquire the exact amount of profit for the years for expanding
their overall size of the business. In recent years, it has been observed that the fashion industries
in Australia have faced certain issues that mainly hampers the organisation which deals with
fashion industries in their overall course of business (Bowlin, Hobson and Piercey 2015). The
problems that are fundamental in nature are directly associated with the current system of
management of the company along with issues in the process of expanding the business.
Identifying and explaining the weakness in the existing system
The system that has already been implemented with the business has certain weakness
that is related to the factors and resources along with internal procedures of the business. These
weaknesses has affected the company in their business procedures which points out the effective
implementation of the objectives for better success in the overall procedures (Brown-Liburd and
Vasarhelyi 2015). The range of the development that is required to be implemented in the
organisation for enhancing the performances along with adopting certain situations. The
appointed managers of the company has pointed certain weakness that based on specific areas of
the business that are required to be mitigated for effective business operations. The strategy of
the market along with the growing opportunities is to be determined with the dominating
weakness for better performances of the company (Liao, Lin and Zhang 2018). Different kind of
weakness has been pointed by the managers of the company which are identified and explained
as follows.
Human resource and other area of problem
Certain weakness are being faced by Jertsy limited includes the areas of expertise along
with human resources. The essential impact of the business is considered as the education of
human resources and consist of lack of competencies for knowing the ability of resources that

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are associated with the business (Ojala et al. 2014). The system of management mainly shares
the knowledge that act as the employee that retains the more information. The executive of the
company is required to be motivated for acquiring more amount of knowledge that mainly results
in effective implementation of the tasks that are associated with the business. The workers and
employees of the companies includes the payment system along with the executives that mainly
lacks the training as well as the development for maintaining the competencies skills (Brody,
Haynes and White 2014). Learning of new things is the new areas which includes the effective
skills that would like to motivate other employees in their overall course of business.
The executive of the company mainly does not look at the overall personal development
of the company that would be associated with the directive principle for better management in
the business activities (Pizzini, Lin and Ziegenfuss 2014). Jertsy limited consist of the employees
that are not at all ready for the program of personal development. It also includes the afraid of
taking any mind of a challenging task that are associated with the business that might hamper the
overall atmosphere of the company. The unhealthy competition that are associated with the
business tends to lose the treat for the potential employees as they are mainly focused towards
the performance as well as a target for their achievement (Chiu, Liu and Vasarhelyi 2014). It also
highlights the location of the areas that might consider for minimising the moral aspects which
might affect the mind set as well as productivity in a negative manner.
Technological area, production and logistics for development
The areas of technology, production and logistics requires a continuous process of
research and development that would provide certain benefits to the company in their normal
business operations. It also consist of certain weakness that are mentioned in this particular part
(Dobler 2014). The process of production consist of resistance management that points out the

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effective procedure of employment as well as an acquisition. Adjustment of the overall process
of productivity is included with low flexibility that comes with the requirement of the customers
that consumes the products and services form the company. It might affect in the long run
business as it points out the effective fluctuation in the demand of the good that would be
supplied to the customers.
Moreover, frequent changes in the suppliers might raise the problem in the overall quality
of the suppliers along with a lack in the process of price stability of the products such as
garments and other clothes (Vanstraelen and Schelleman 2017). The problem with the suppliers
are directly associated with the proper mechanism that includes certain parts of the business
activities. The suppliers of the raw materials might get affected by the distance of their delivery
location which includes the lack of patients and the trademarks that are associated with the
business. In addition to this, timely execution of the received orders from the customers might
affect the production measurement that would restrict the employees for generating any kind of
productive ideas (Ratzinger-Sakel and Schönberger 2015). Therefore, it mainly demotivates the
employees that implements the important ideas which creates certain opportunities for the
business.
Sales area, customer services along with finances
The waiting time for the direct contract is affected by the lack of sales representative that
helps in enhancing the overall procedure of sales along with changing the needs of customer
preferences for assorting the overall process of assessment (Issa, Sun and Vasarhelyi 2016).
Customers that are not satisfied by the products of the company also affect the business
procedures that mainly points out the effective measurement of poor service in the process of
customer service. On the other hand, the unsatisfied customers generally faces the low quality of

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goods for high prices that would affect the mind-set of the customers. The management of the
company that is Jertsy limited might not consider any kind of market research that accepts the
request of the customers. In addition to this, the company consist of limited sources of finances
and has less accessibility on an internal source of financing (Kharisova and Kozlova 2014). The
cost and the budgeting information is to be presented in the business activities that would help
the company in achieving their targets. Therefore, the above mentioned weakness are is to be
mitigated by implemented certain management strategies which would also heal the issues in an
existing system.
Suggesting improvements in the new system
There are certain strategies that are required to be implemented for mitigating the
weakness along with enhancing the overall performance of the organisation. The administrative
department of the company is required to be performed in a better way by implementing the
strategies that puts the link from the employees to the higher management of the company
(Kinney Jr, Martin and Shepardson 2013). The implementation of performance index is to be
assumed for the true process in the behaviour of the management along with engaging the
employment and other employee retention performances. The company is required to focus on
the performances that are being performed by the company along with developing the old setup
that are already included with the business (Pennington, Schafer and Pinsker 2017). The senior
management of the company is required to implement as well as change certain management
policies for improving the new system in overall business procedures.
The benchmarking indicators has both positive impact as well as the negative impact
which would be beneficial for the Jertsy limited for enhancing the management behaviour along
with fulfilling the overall requirement of the company. The achievement of the employees in

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their normal course of business mainly points out the results of the individual employees in the
company along with procedures for further development (Rose et al. 2017). After the process of
making the goals, the existing plan is required to be developed for achieving their goals and
objectives in an effective way. The existing employees of the company is required to report over
the issues that might have been faced by them which might point out the effective process of
feedback that would help in eliminating the risk in the business. The overall performance of the
employees is also important in the aspect of the business as it highlights the progress of the
business.
Recommendation
From the above study, it can be recommended that for meeting the expected amount of
profit, the company would like to maximise their goals that empowers certain aspects of the
business. A training module is to be provided to the worker in their normal course of work which
points out new technique and skills that are practical in nature for making them efficient. The
other important aspect is to motivate the people that are directly associated with the company
and it might enhance the overall productivity of the firm. The initiatives for the development is
directly associated with the company after analysing the internal performance by hosting many
employees. Therefore, the Jertsy limited has to set an appropriate goal that would directly affect
the overall business structures of the company. The roadblock is to be removed from controlling
the companies which includes the information about the equipment that are associated with the
company.
Conclusion
From the above study, it can be concluded that Jertsy limited which deals with clothing
industry in Australia which points out certain issues in the field of human resource, accounting

10AUDITING AND CONTROL IN THE ORGANISATION
and finance and others. The store is responsible for maintaining the accounting records which
would be beneficial for the company in their normal course of business. The senior management
of the company is required to implement certain strategies for opening new stores in a different
location in Australia. The range of the development that is required to be implemented in the
organisation for enhancing the performances along with adopting certain situations. It also
includes the afraid of taking any mind of a challenging task that are associated with the business
that might hamper the overall atmosphere of the company. The suppliers of the raw materials
might get affected by the distance of their delivery location which includes the lack of patients
and the trademarks that are associated with the business. Customers that are not satisfied by the
products of the company also affect the business procedures that mainly points out the effective
measurement of poor service in the process of customer service.

11AUDITING AND CONTROL IN THE ORGANISATION
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