Organizational Chart Essay

600 Words3 Pages
Question 1: Prepare an organizational chart for Biltrite and identify the major strengths and weakness in Biltrite’s organizational structure. Organizational chart of Biltrite Strengths and weaknesses in Biltrite’s organizational structure. Biltrite bicycles Inc. was incorporated in 1970 and since then it has successfully added many bikes to its production line. The company has experienced steady growth in sales and profitability of all product lines from the date of its incorporation. The following strengths in the organizations structure can be attributed to this success. The company follows segregation of duties in the accounts and the finance department. The audit staff consists of well experienced and trained personnel. The CEO is aware of the importance of risk assessment procedures and is in the process of establishing of risk assessment team. The description shows adequate separation within the CBIS function such as systems analysis and programming are separate from data processing and control. There are areas where the reporting procedures are very strong and carried out very efficiently. The weaknesses consist of the dominant role played by the CEO, Mr. Trevor Lawton who is very aggressive and wants that the staff should focus on what he thinks is important. His philosophy is that the financial statements should look good. The controller of the company was at one time an employee of the auditing firm. So he is familiar with the firm’s auditing procedures and on that basis he can cover intentional misstatements Question 6: What is the purpose of performing analytical procedures during the planning phase of the audit? What is the purpose of including budgets and performance reports in the application of analytical procedures? Based on your analytical procedures performed in requirements (2), (3), (4) and (5), what, if any, concerns to
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