Question

 HARDA Manufacturers is still designing and developing applications for its new system. David Savage received a letter from the external auditor. He called a meeting with his vice presidents to review the recommendation that HARDA Manufacturer should form an information system steering committee. Required: a) Explain the possible reasons for the fact that auditors have recommended forming a steering committee. Also discuss the specific responsibilities of this steering committee. [5 marks] b) Discuss the benefits and the composition of this steering committee. [2 marks] [7 marks. Word limit: Up to 250 words.]

Answer 1

(a) Steering Committee has a main role is to make goals and objectives of enterprise in active mode, in other words, It means that steering committee helps in integrating objectives of firm with actual operations. It act like a linking pin between various core aspects of successful business. It can be considered equal to internal audit committee.

As recommended by External Auditor that company should form Information System Steering Committee. It might have came across various problem while auditing firm's statements. There can be following reasons behind it :-

1) To facilitate better coordination between company's different department working on project.

2) To improve efficieny of business operations and Information system in firm.

3) To evaluate and correct fund allocation and utilisation across various project sub -heads.

4) To improve on working of budgets and data managment functions.

Deriving from above possible reasons there can following assigned roles of steering committee:-

i) Considering the project with more wider perspective and better assimilation of information.

ii) Finding the problems in flow of information and data across firm.

iii) Taking in views from representatives all stakeholders involved in project.

iv) Recommending stage-wise solutions to problems and issues based on information system.

v) Improving directing and controlling function.

b) Benifits of Information System Steering Committee:-

• It helps in improving information flow and better data management in project.
• It will help in better coordination of activities with goal of company.
• It will help in comprehensive understanding of problems and lacunas that are hindering the performance of enterprise.
• It will also help in resolving the conflict of interest in system.

Composition of this commiitee :- It should include a head( Committee Coordinator) and sub-heads( Members) that are representative of stakeholders. Setting up proper rules and guidelines for working of committee and after that regular meetings will be necessary for proper functioning.