Question 2

MEMO

To: Mr. A. CEO – Canadian Wood Toys INC.
From: … CAE – Canadian Woos Toys LTD
Date: October 05, 2014
Subject: Identify the risks and solutions to mitigate the risks

I will begin by highlighting the importance of the audit in assessing the risk and identifying the steps in reducing and mitigating the risk that our company is facing.
The impact of the risks on global business it is dramatic in our days, changing the entire look of the industries and financial services. Some risks could be anticipated and identified but some could not. Companies now are using more and more key steps and principles to better manage the risks by;
*** identifying the risks relevant to the organization
*** assess the significance …show more content…

“Internal auditors must develop and plan for each engagement, including the engagement’s objectives, scope, timing and resource allocations”. “The Internal auditor plans and conducts the engagement, with supervisory review and approval”

1. The first step is: To obtain specific knowledge of the unit to be audited.

In this stage of the process we will gather and review the specific documentation that will help us getting more familiar with the division of food service – residential and campus. Some of the documents we will be reviewing:
The annual budget; we have information about how much the overall budget is (8.9mil.); need to know how much is allocated to the food service program and how is spent.
Policies and procedures
Previous internal audit papers and reports
List of the staff; org charts
Contracts with food suppliers
Documented projects and how the implementation process took place
Upon reviewing of the documents we will be able to assess the problems that incurred; it will help us identify any managerial mistakes, any miscommunication between suppliers and management; if there is enough staffing

2. The second step in the audit plan is to: Establish the audit objectives and the scope of the audit.

At this stage we need to review all the activities involving food service program step by step. This is to