Explain four (4) steps to promote effective communication of internalaudit reportst. The following is an excerpt from

 Explain four (4) steps to promote effective communication of internalaudit reportst. 

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The following is an excerpt from the internal audit report of Berjaya Hypermarket Berhad (BHB) pertaining to the inventory purchase procedures. OBSERVATION Criteria The details of the goods received are documented in Form RP01 (Receiving Report) and supported with Form RP08 (Purchase Order). These documents are attached together and send to the Accounts Executive (Accounts Payable) for the receiving information to establish the validity of the invoices receive from the vendors. Condition The details of receiving are not completely written on Form RP01, in particular on the reason for the return and this has resulted delay in acknowledging the liability in the accounts payable. As a result, the vendors receive late settlements. Cause Every day, the receiving department handles many deliveries. Effect This issue did not result in a loss of revenue. However, late in paying the invoices do negatively affect the company reputation with the vendors. Recommendation It is recommended by the internal auditors that two staff should be responsible in managing the receiving process. Action Plan Failure to note the damage can relieve the transport operator of liability. That means Berjaya Hypermarket Berhad (BHB) could become responsible for bearing the costs of the damage. The following is an excerpt from the internal audit report of Berjaya Hypermarket Berhad (BHB) pertaining to the inventory purchase procedures. OBSERVATION Criteria The details of the goods received are documented in Form RP01 (Receiving Report) and supported with Form RP08 (Purchase Order). These documents are attached together and send to the Accounts Executive (Accounts Payable) for the receiving information to establish the validity of the invoices receive from the vendors. Condition The details of receiving are not completely written on Form RP01, in particular on the reason for the return and this has resulted delay in acknowledging the liability in the accounts payable. As a result, the vendors receive late settlements. Cause Every day, the receiving department handles many deliveries. Effect This issue did not result in a loss of revenue. However, late in paying the invoices do negatively affect the company reputation with the vendors. Recommendation It is recommended by the internal auditors that two staff should be responsible in managing the receiving process. Action Plan Failure to note the damage can relieve the transport operator of liability. That means Berjaya Hypermarket Berhad (BHB) could become responsible for bearing the costs of the damage.

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