You are on page 1of 3

1.

Prepare a flow chart of the information and transaction concerning the usage of
spark plugs during the servicing of automobiles at the large city garage

Vehicle

Arrived

Record
Vehicle
Information

Mechanics
Record By

Updating

Customer
Database

Consultatio
n

Test Driving
and
Recommendati
on

Spare Parts
Stock Opname

Determining the
parts that need
to change

Updating
Repairing
parts form

Changing
Spark
Plugs

Providing
Spare parts
Repair &
Change
Final Check
& Test
Drive

No (0-6000)

Yes (> 6000)

2.

What are the acceptable standards of
a.

the conventional spark

management control for :
Determining requirements for spark plugs
They had determined that spark plugs with
Vehicle
Ready
platinum tips lasted five times as long as
plug, but cost three times as much. On the

other hand, the platinum-tipped spark plugs had a reclamation and disposal value,

000 to 10. which are:  It was showed in the scenario 2 (review and testing of management control) that orders were outstanding based on the 6.000 miles and the purchase orders of the purchasing groups based on the requirements.75 while the platinum-tipped plugs cost $2. Were the standards you considered acceptable. . highway and streets department) because the car that have a high mobility need a spark plugs that have a long life cycle. Whereas platinum-tipped plugs that have been used can still Disclosed in equal as salvage value which is $ 0.000 miles or 6 months. It means that standard plugs almost ignore the useful life of the plugs that make an impact on the outstanding ordered.25. in addition to servicing the equipment at any failure. including tuning the motor.25. the conventional spark plugs cost $0. less cost for maintaining.while the conventional spark plugs cost the garage the time and effort to dispose of them. every 6. Purchasing fine-wire spark plugs The garage serviced the equipment at regular servive periods. Replacing the fine-wire spark plugs by mechanics. These showed that the average service life of the platinum-tipped plugs ranged from 6. 3. but in standard that have been made say that automobiles were brought in for routine servicing. There are a few things that causing the standard is not carried out by the organization.50. so that’s why platinum-tipped plugs more efficient into the car that have a high mobility because platinum-tipped plugs provide those requirements. and disposing of spark plugs The mechanics routinely changed the plugs every time they serviced an automobile.000 miles of usage. both by mileage and time. so the maintenance cost that comes from the conventional spark plugs is bigger than platinum-tipped plugs. based on the explanation in background data which is tell us that platinum-tipped plugs have a longer life cycle rather than conventional spark plugs. From that requirements. the car that using the platinum-tipped plugs have to be the car that have a high mobility (such as police. the salvage value of the platinum-tipped plugs was $0. carried out by the organization? The standard that I considered acceptable is not carried out by the organization. it means that conventional spark plugs more need the service in several times than platinum-tipped plugs.000 to 10. c. the car that using conventional spark plugs have to be the cars that have a low mobility (such as truck). whichever came first. Then. b.

4. What would need to be done to assure management that the standards were being carried out in a satisfactory manner? Several things that we need to be done to assure management that the standards were being carried out in a satisfactory manner are:  Ensure that the standards that have been made as detailed as possible to minimize  the chance for doing standards deviation Regular supervising to ensure that the standards that have been made can be  applied by any organizational structure. policy. Would your knowledge of the management controls of the organization have had any effect on your decision as to whether or not to make an audit? The term management control means embraces the entire system of organization. as well as the actual practices carried out in managing entity affairs. .000 miles of usage was the minimum desired service life from the platinum-tipped plugs. Management has no standards concerning dispense plugs. and procedures determination. Then. 5. but the fact is from watching the mechanics service an automobile. and for those who do the standards  deviation will be punished. they do not distinguish between conventional and platinum spark plugs on disposing of it. which showed that 3. It is showed in scenario 2 (review and testing of management control) that the appropriate technical manual on spark-plug usage. the auditors observed that the mechanics routinely changed the plugs every time they serviced an automobile. Communicating the existing standard to customers by providing an explanation for the car that have been services and give an explanation why the car spark plugs need to be replaced or disposed. This knowledge help us for giving an understanding that we have to assess what the risk that included on doing my audit. including the planning. we can consider what the audit objective is based on the risk that I assessed before. especially in this case for mechanic Applying the rules of reward and punishment. for those who implement the standards very well will be rewarded.