Auditing Task Harvard Case Solution & Analysis

Auditing Task Case Study Solution

Furthermore, there have been various internal control weaknesses such as;there is a partially filled delivery to the customers, in case the company fully filled delivery, the expenses would be reduced to some extent. Since, the sales invoices are prepared on the monthly basis;the incomplete deliveries have been outstanding for more than 30 days, which is positing negative effect on the reputation of the company. Another weakness of the internal control is an incorrect specification and not describing the features of the solution,which shows ineffective policies and procedures developed within the company. Another weakness is the oversupply of products that tends to lead to the unsold goods as well as lower prices along with the likelihood of unemployment (Wollacott, 2019).

Most importantly; the company should have an internal auditor who would provide insights of the procedures, policies, culture of the organization and would provide an aid to the management by substantiating internal controls such as risk mitigation controls and operation effectiveness.


After taking into consideration the weaknesses of the internal control; it is to recommend that the company should formulate effective operating management strategies in order to be efficient in the business operations in development and support of strategic goals of the company. Also, it is recommended that the company should have quality assurance as one of the significant business process that would be used in the manufacturing facilities to evaluate and monitor the performance on products and services. The QA management techniques would allow the company to yield strong margin and build a string brand image in the market. In addition, the internal audit team would most likely provide the broad range of the audit services to aid the company to accomplish the common goals. The internal audit would assess the mitigation processes and monitor the risk, detect frauds, offer objective assurance; adding value and improving the operations of the company.


To sum up, it is to conclude that the company has an effective internal control in terms of the aging analysis, manual delivery notes, segregation of duties and computerized financial records.On the other hand, there are some weaknesses in the internal control of the company such as; late deliveries, partial filled delivery, product’ oversupply, incorrect specification, and inferior product quality.

The steps involved in evaluating or assessing the effectiveness of the internal control involvesevaluation of the control testing, assessment of the control environment, investigation of the control activities, examination of accounting information system and evaluation of the quality of monitoring. The company is recommended to have an internal audit team and quality assurance, and it should develop the operational management strategies to deal with the issues and to resolve them with greater means............


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