Acc621 Essay

726 Words Jun 24th, 2014 3 Pages
The two risks involved with outsourcing a business process (the off-shore ministry of health) 1. Does the outsourced vendor have adequate internal controls in place 2. Is the outsourced vendor able to provide the same or better quality of the product or service that could be achieved by keeping the business process in house.
Three recommendations for the two above risks 1. Ensure there are means of monitoring the effectiveness of the outsourced business process 2. Obtain assurance that the internal controls imbedded in the outsourced business process are operating effectively, through internal audits or external reviews of these controls. 3. Periodically Re-evaluate whether the business case for outsourcing the
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Also provide protection from management fraud. 6) Outside directors are advantageous to the company because they have very little conflict of interest and may see the big picture differently than insiders. 7) The general consensus among stockholders is that independent directors improve the performance of a company through their objective view of the company's health and operations

5 most important business processes for the following company (Retailer) 1) Buy goods and sell them – Buy from manufacture and sell to customers – set up reliable supply chain 2) Setting up the store – Layout, merchandising, marketing, product placement, build your target audience 3) HRM – adequate # of employees 4) Financial resources – manage the cash in/outflows and the credit availability/debt 5) R & D – always try to improve the service and quality of the product 6) Manage compliance – Follow regulatory bodies and abide by the laws and regulations 7) Manage external relationships – Suppliers, distributors etc.
5 most important risks for the following company (Retailer) 1) Competition – strategic direction, innovation of competition can affect market share 2) Economics – shifts in the economic environment can significantly affect customer confidence 3) Accounting valuation and reporting – can lack integrity and compliance 4) Technology – not having the correct one can affect achieving objectives 5)

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