Question

David Savage, a business graduate, started a manufacturing business known as HARDA Manufacturers. Over the last three years, the company has experienced steady growth. There are seven vice presidents, who represent; (1) Finance, (2) Marketing, (3) Manufacturing, (4) Information System and Services, (5) Human Resources, (6) Administration, and (7) Research and Development.

These seven vice presidents report to David Savage, the Chief Executive Officer (CEO) of this business. The Information Systems and Services department was established last year when HARDA Manufacturers began developing a new information system consisting of a server connected to each employee's personal computer. This is a limited information system, and the PCs can download and upload data to the server. 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]

- upto 300 words

Answer 1

Steering committee

It decides the order of business and general course of its operations and also it prioritize the operations of a business.

Steering committee makes hear of all the voices from the different departments and helps to conclude the right perspective when it comes to their perspective. their role is to stay on budget and analyse the impact of changes occurred.

(a)

Auditors will help the organization and recommend them regarding selection,termination and budget related things of the present request of proposal

Specific Responsibulities of an auditor in steering committee:

· Go through with the records of books and verify weather its feasible to maintain it or not

· The adequacy of the policy on annual basis and obtain approval letter from the board for further revisions if required

· Checking the scope and general extent of independent auditors work for determining the major risk factors and audit scope, also independent auditors have to confirm that no limitations have levied.

· Reviewing present accounting policies, principles and practices that company is following now

· Discussions have to be made with independent auditors about the companies quality of maintaining financial data to know the strength of principles following

· Associations code of conduct and ethics policy to ensure that management has established a system to enforce it.

· Investigating to serious issues or disputes from the process and also report on it immediately

· Associations legal requirements and compliance is also mandatory.

(b)Benefits of steering committee

· Committee have to be focused on quick decision making and to implement it

· Forum to share their views i.e stakeholders

· Communication with all the parties will be in the same way and also in the same time

· This means everyone have to say on all the issues regarding the particular project

· Control on all levels

· Work will be progressed in the sequence its planned

· Progress of the project will hold transparencey to the management

· Good communication medium for all the members in the team

· Focuses on viability of project from business point of view

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