Auditing and Assurance Service in Australia Essay

Auditing and Assurance Service in Australia - Essay Example This over extraction also may hamper the ground support system of the mine. Here overproduction also signifies that there is a huge lack of communication and interaction between the smelting division and the mining division. In fact it the problem with the entire company where signals are not present about the amount to be produced and how much amount of ore to be mined each time period. The second major risk that the division is currently having is the inability to gel with the acquired companies. As a result of this there is redundancy in operation as well as in costs incurred. These redundancies hurt more when the market is down for the ore. The business could fall drastically if the entire mining division is not centralized and integrated. The repeated processes of transferring the ores to the internal and external divisions are taking the cost component upwards. This is one of the major painful areas in the division. An ideal system would demand a proper coordination among the s hafts, and well assigned targets of productions should be given to the individual shafts. These shafts should not be made liable for the sales of the ores; rather it would be the central sales department who would have knowledge about the production requirement of the smelting departments, the foreign and the local customer demands. According to the demands production planning should be done, not the other way round. For this to happen, the mining stores of different shafts should be integrated. This brings us to the third level of risk the division has. The stores of the different shafts are not connected and no computer data base is maintained for the amount of stocks that the division is holding. The sales department to have a better knowledge about the amount of stocks that are with the different shafts should introduce a new IT package for store keeping. A proper communication flow can be maintained between the shafts and the  sales department if proper information is availab le in both the ends.