Change of Management at Briardene Care Home - Free Essay Example

Sample details Pages: 7 Words: 2241 Downloads: 7 Date added: 2017/06/26 Category Management Essay Type Research paper Did you like this example? Introduction This study aims to help the management, staff, service users and anyone directly or indirectly linked to Briardene Care Home understand a vast range of theoretical approaches or typologies that can be applied in the event of change of management at Briardene Care Home. It is written with the notion to help the management to design a strategic approach with tools to meet the needs of Briardene care Home in work force planning. It also aims at ensuring that Briardene Care Home maintains or increases its rating by meeting the required standards of delivery of nursing care as required by the Care Quality Commission (CQC). Don’t waste time! Our writers will create an original "Change of Management at Briardene Care Home" essay for you Create order Briardene Care Home Briardene Care Home is a privately owned nursing home belonging to the Executive Care Group. It is situated in Newbiggin on the western end of Newcastle Upon Tyne and has a maximum occupancy of 60 residences. Service users are normally people with dementia or elderly people needing nursing or residential care. It also accommodates people who need specialist care like those suffering from Alzheimer and most residences speak English apart from a few who are Polish. All rooms conform to the sizes required by the National care standards guidelines and at present employs 62 members of staff but number of staff employed normally varies as determined by the assessed needs of clients. Diagnosis There are several frameworks and theories which can be used as a tool for diagnosing business strategies but in this Study we shall focus on the Mckinsey 7s framework. Postma and Kok (1992) defines organisational diagnosis as a process of research into the organisations function in order to recommend ways in which it can improve. It is essential for organisations like Briardene care home to always consider their market position and constantly research their capabilities because of the way the health and social care industry is growing. Since the advent of the recession in 2008 a lot of companiesà ¢Ã¢â€š ¬Ã¢â€ž ¢ specialising in Residential and Nursing care closed down and also new laws have were put into place to accommodate the higher life expectancy and revised retirement ages. This resulted in big and major companiesà ¢Ã¢â€š ¬Ã¢â€ž ¢ to merge and absorb small companies which could not cope with both the new laws and the harsh economic conditions. Briardene Care Home has evolve d with the moving times and has managed to position itself to face any competition within the harsh conditions under its operational existence in the Executive Care group. Mckinseyà ¢Ã¢â€š ¬Ã¢â€ž ¢s 7s Framework at Briardene Care Home. The McKinsey 7S Framework is a management model developed by well-known business consultants Waterman and Peters (who also developed the MBWAà ¢Ã¢â€š ¬Ã¢â‚¬  Management By Walking Around motif, and authored In Search of Excellence) in the 1980s.The model is most often used as a tool to assess and monitor changes in the internal situation of an organisation. The model is based on the theory that for an organisation to perform well, the above seven elements need to be aligned and mutually reinforcing. The above 7S model can be used to help identify what needs to be realigned to improve performance or to maintain alignment (and performance) during other types of change. The 7S model is a good framework to help you ask the right questions but it does not give you all the answers. For that youll need to bring together the right knowledge, skills and experience. The Mckinsey framework is the management tool designed to facilitate the process of strategy implementation within the co ntext of organisational change. Successful implementation of strategy requires management of the interrelationships between seven elements. 4.1Shared Values Briardene Nursing home has operated as a nursing care home for the past 20 years. From the time of its inception till to date it has evolved in a lot of ways in order to reduce its running and administrative costs whilst maintaining excellent standards and being able to meet customer needs. It has also evolved in line with technological changes and has also faced the harsh conditions of a Care market which has been stagnant in the past decade. In the past few years it has been restructured to cater into account the population needs of the country, the lower level of sponsorship and diminishing pensions and benefits for pensioners because of the rise in life expectancy and the increase they have managed maintaining high standards despite the changes in economic climate. Maslow motivation theory believed that individuals exp erience a range of needs and will be motivated to fulfil which ever need is most powerful, self-actualisation, esteem, belongingness and love, safety and physiological .(Maslow 1970 cited in Boddy1998). 4.2Systems: Briardene Care Home has formal processes and operational procedures in place to manage the day to day running of the home. Emphasis is always placed on policies and techniques that aim to improve employee morale and job satisfaction so as to increase the employee efficiency and reduce unrest, there is need to focus on productivity, efficiency and promoting understanding between employees and clients. Management and staff understand structural development in terms of growth of the care home and also in line with adjustments pertaining to development of premises and the work and stress which they are associated with. Although there are all these procedures and policies in place there is lack of measurement for operations for example lack of accountability and no measu re of productivity. 4.3Styles Organisational structure of Briardene is a functional structure, each group knowing its structured roles, responsibilities and having a team leader within the group who coordinates with the lead manager. Although this programme is ideal for Briardene problems normally arise. Functional approach can be efficient as people with common expertise work together sharing and seeing a professional career path. The major difficulty with this line of professionalism growth is that it may be a source of conflict (Nauta and Saunders, 2000) if the separate function develop different perceptions of the organisational goals and compete for posts. The structure of an organisation is described as à ¢Ã¢â€š ¬Ã‹Å"the sum total of ways in which it divides labour into distinct tasks and then achieves coordination among themà ¢Ã¢â€š ¬Ã¢â€ž ¢ (Mintzberg 1979 cited in Boddy1998). It means span of control at Briardene is narrow, meaning staff are closely supervised. It p rovides a framework for operational planning meaning increase in effectiveness. The manager at Briardene as the leader coordinates the day to day running of the home and is the single source of authority which suggests that the leadership style is of an authoritarian nature. Employees do not got have much influence on any changes to the Nursing home and are told what to do .Dundon and Rollinson (2011) argue that the authoritarian organisations often have poor communication skills there is less contact between employees and the top managers. Kotter(1998) suggests leadership has to be multiplied and shared if for change to be successful . 4.4Staff A performance driven culture has always been the hallmark of Briardeneà ¢Ã¢â€š ¬Ã¢â€ž ¢s atmosphere. The Management at the care home have a tendency of recruiting families or relatives of staff members. This has led to confusions on the delegation of duties and how employees may relate to each other at work because of family ties. The re is need to ensure that the line of delegation and how staff should treat each other is clarified and effected. Staff should understand the code of practise and should be able to do their jobs without any interference from other people. The work place should be kept exciting and staff should be encouraged to attend both in house training and external courses so that they can improve their work. New employees should be made to feel at home and the induction period should be extended to ensure that staff understands their jobs and that they gain the confidence which is necessary to get the best out of their potential. Briardene care home should educate its staff on the standards it expects from the employees and should also carry out regular feedbacks with clients and their families to ensure that their needs are met. In order to improve and negate above conditions the Management holds monthly staff meetings where staff are given the opportunity to raise issues of concern and areas where they want management to improve and make a safe and beneficial work environment in order to achieve set goals. 4.5Skills Briardene is an organisation in the social care industry which has structured policies and procedures in place that details staff roles, their responsibilities, their limitations and boundaries and clearly outlines as required by codes of practice set out in the Care Standard Act 2000. Management at Briardene makes sure all staff on commencement of employment are made aware of their responsibility. Briardene has a multi skilled team which contributes differently towards achieving the set goals. It relies on training and educating its employees to ensure that the Nursing home runs efficiently and functions properly. They also highlight that it is individualà ¢Ã¢â€š ¬Ã¢â€ž ¢s responsibility as professionals to maintain and develop as a practitioner throughout to ensure that they retain the capacity to practice safely, effectively and legally within the evolvi ng scope of practice. The Chartered institute for personnel and Development (CIPD) emphasises the individual responsibility professionals must take for their on-going development within their definition, à ¢Ã¢â€š ¬Ã‹Å"a combination of approaches, ideas and techniques that will help you manage you own learning and growthà ¢Ã¢â€š ¬Ã¢â€ž ¢ (CIPD, 2008). 4.6Strategy Briardene in their day to day running of the care home have adopted a range of organisation strategies while upholding standards despite the changes in economic climate. The strategies the care home has adopted provides management team at Briardene a framework for operational planning, thereby increasing organisational effectiveness and giving them clarity on the direction of organisational activities resulting in personal employee satisfaction and improve their understanding of the rapid changing environment in the Health care industry which they operate. Research has revealed that organisations that engage in strat egic management generally outperform those that do not. Wheelen and Hunger( 2005 ) states à ¢Ã¢â€š ¬Ã‹Å"an organisation will perform to a high standard when there is a matching correlation between the organisational environment and the strategy, structure and processes of that organisationà ¢Ã¢â€š ¬Ã¢â€ž ¢. Strategy provides structure as to Briardene in the health care high standard when there is a matching correlation between the organisational environment and the strategy, structure and processes of that organisationà ¢Ã¢â€š ¬Ã¢â€ž ¢. Strategy also provides structure the health care industry in terms of the consumer which is the clients and geographical sense. The following are the organisational strategies in place at Briardene 4.7Structure The organisational structure at Briardene is of functional structure its tall meaning showing that the span of control is narrow, meaning staff are closely supervised in tall structure there is poor communication between clients and t heir families and manager clients feedback gets to the manager through the employees meaning information can be distorted or misinterpreted. Management takes place within a structured organisational setting with prescribed roles. It is directed towards the achievement of aims and objectives through influencing the efforts of others. Classical theorist Taylor, Fayol was concerned with the structure and mechanics of the organisation while human relations understandably is concerned with the human factors like motivation, group motivation, leadership. Briardene Care home has adopted and applied well the Human relations management approach in the day to day running of the care home thus providing care services to the clients and their welfare. Organisation management is an à ¢Ã¢â€š ¬Ã…“advance in industrial and organisational psychology and in organisational behaviour, whose general meaning was that when people are being observed by researchers, they temporarily change their behaviou r or performanceà ¢Ã¢â€š ¬Ã‚  this became known as the à ¢Ã¢â€š ¬Ã‹Å"Hawthorne effectà ¢Ã¢â€š ¬Ã¢â€ž ¢ (Boddy,1998). Change in Management Model. We are living in the world where business as usual has evolved in a lot of ways. The harsh economic climates have forced a lot of changes. Companies have merged and companies have been taken over. Companies have been acquired and companies have also changed the way they operate in order to compete with other companies or to adjust to changing laws. Several factors such as new initiatives, project-based working, technology improvements and staying ahead of the competition to name but a few factors have necessitated change and the way companies work. Whether one is considering a small change to one or two processes, or a system wide change to an organisation, its common to feel uneasy and intimidated by the scale of the challenge. Because of the inevitable changing characteristics of the business environment, organisations need to find creative and adaptive ways to successfully manage change to maintain a strong business position in the Health and Social care industry. The decision t o adopt change is often to improve operation performance or reduce cost associated with doing business. Dawson (2009) explains that change is important to organisations as they help improve performance and productivity. However, it is also necessary to recognize that there are different types and levels in order to properly implement change. The duty of organisations is to identify the need for change, involve all affected stakeholders and manage such change effectively to keep the organisation dynamic. Andriopoulos and Dawson (2009) explain that organisational change is à ¢Ã¢â€š ¬Ã‹Å"new ways of organizing and workingà ¢Ã¢â€š ¬Ã¢â€ž ¢. They explain that change occur in two dimensions movement of state and scope of change. For the organisation to be able to effectively change its practices and communicate properly it should consider reducing its layers and become flat structured. This allows a few people to take control of the change process and to absorb elements that can be crit ical towards the whole process. 1

Article 92 - Why A Casino Portal Can Be A Gamblers Best...

Article 92 - Why a casino portal can be a gambler’s best friend Back in the day, anyone who wanted to find a noteworthy casino bonus had to put in some serious legwork. Hour upon hour of research would be needed to not just find an appropriate casino bonus, but to even see what’s out there. Ask any gambler who did such back in the early 2000s about this and they’ll tell you that such process was an almighty grind. As time progressed the process of locating a casino bonus moved on and thankfully casino portals were invented. These â€Å"portals† pooled information in ways that hadn’t ever been seen before. Are you eyeing up a new online casino? Are you wondering if the casino bonus being offered is up to muster? Then a casino portal can help.†¦show more content†¦Through a casino portal you won’t need to search every corner if the Internet to find out what bonuses are on offer and where a casino ranks amongst the competition. In many ways they are a one-stop shop for all online casino reviews, news, stat istics, and information. Two key features found within casino portals are comparison reviews and comparison tables. Through both these features you can cut through all the marketing material and see the true facts. Rank casino features against each other and rank bonuses against each other in order to find the very best casino for you. Simply put, casino portals provide a goldmine of information that you may not otherwise be able to see if it weren’t for someone else undertaking the research. There is absolutely no doubt that casino portals can be of great use to both novice and experienced players, but as a medium they aren’t perfect. In many cases casino portals are still run by hobbyists and online gambling enthusiasts, which means they are limited in terms of manpower. This also means that the newswire and product reviews may at times not be up to date. New games and more specifically new casinos are being launched regularly and in some cases some online casino portals can’t keep up. You must also remember that whatever you read on a casino portal is subjective. Ever evolving and ever changing, the online casino world

Related Literature-Inventory System Free Essays

Inventory control systems maintain information about activities within firms that ensure the delivery of products to customers. The subsystems that perform these functions include sales, manufacturing, warehousing, ordering, and receiving. In different firms the activities associated with each of these areas may not be strictly contained within separate subsystems, but these functions must be performed in sequence in order to have a well-run inventory control system. We will write a custom essay sample on Related Literature-Inventory System or any similar topic only for you Order Now In today’s business environment, even small and mid-sized businesses have come to rely on computerized inventory management systems. Certainly, there are plenty of small retail outlets, manufacturers, and other businesses that continue to rely on manual means of inventory tracking. Indeed, for some small businesses, like convenience stores, shoe stores, or nurseries, purchase of an electronic inventory tracking system might constitute a wasteful use of financial resources. But for other firms operating in industries that feature high volume turnover of raw materials and/or finished products, computerized tracking systems have emerged as a key component of business strategies aimed at increasing productivity and maintaining competitiveness. Moreover, the recent development of powerful computer programs capable of addressing a wide variety of record keeping needs—including inventory management—in one integrated system have also contributed to the growing popularity of electronic inventory control options.Given such developments, it is little wonder that business experts commonly cite inventory management as a vital element that can spell the difference between success and failure in today’s keenly competitive business world. Writing inProduction and Inventory Management Journal,Godwin Udo described telecommunications technology as a critical organizational asset that can help a company realize important competitive gains in the area of inventory management.He noted that companies that make good use of this technology are far better equipped to succeed than those who rely on outdated or unwieldy methods of inventory control. 1 COMPUTERS AND INVENTORY Automation can dramatically impact all phases of inventory management, including counting and monitoring of inventory items; recording and retrieval of item storage location; recording changes to inventory; and anticipating inventory needs, including inventory handling requirements.This is true even of stand-alone systems that are not integrated with other areas of the business, but many analysts indicate that productivity—and hence profitability—gains that are garnered through use of automated systems can be increased even more when a business integrates its inventory control systems with other systems such as accounting and sales to better control inventory levels. As Dennis Eskow noted inPC Week,business executives are â€Å"increasingly integrating financial data, such as accounts receivable, with sales information that includes customer histories.The goal: to control inventory quarter to quarter, so it doesn’t come back to bite the bottom line. Key components of an integrated system †¦ are general ledger, electronic data interchange, database connectivity, and connections to a range of vertical business applications. † THE FUTURE OF INVENTORY CONTROL SYSTEMS In the latter part of the 1990s, many businesses invested heavily in integrated order and inventory systems designed to keep inventories at a minimum and replenish stock quickly.But business owners have a variety of system integration options from which to choose, based on their needs and financial liquidity. At the same time that these integrated systems have increased in popularity, business observers have suggested that â€Å"stand-alone† systems are falling into disfavor. A 1996 study by the International Mass Retail Association (IMRA), for example, concluded that stand alone Warehouse Management System (WMS) packages acquired to perform individual functions will soon become obsolete because they do not integrate well with other systems. Another development of which small business vendors should be aware is a recent trend wherein powerful retailers ask their suppliers to implement vendor-managed inventory systems. These arrangements place the responsibility for inventory management squarely on the shoulders of the vendors. Under such an agreement, the vendors obtain warehouse or point of sale information from the retailer and use that information to make inventory restocking decisions. 2 WAREHOUSE LAYOUT AND OPERATIONThe move toward automation in inventory management naturally has moved into the warehouse as well. Citing various warehousing experts, Sarah Bergin contended inTransportation and Distributionmagazine that â€Å"the key to getting productivity gains from inventory management †¦ is placing real-time intelligent information processing in the warehouse. This empowers employees to take actions that achieve immediate results. Real-time processing in the warehouse uses combinations of hardware including m aterial handling and data collection technologies. But according to these executives, the intelligent part of the system is sophisticated software which automates and controls all aspects of warehouse operations. † Another important component of good inventory management is creation and maintenance of a sensible, effective warehousing design. A well-organized, user-friendly warehouse layout can be of enormous benefit to small business owners, especially if they are involved in processing large volumes of goods and materials. Conversely, an inefficient warehouse system can cost businesses dearly in terms of efficiency, customer service, and, ultimately, profitability.Transportation and Distributionmagazine cited several steps that businesses utilizing warehouse storage systems can take to help ensure that they get the most out of their facilities. It recommended that companies utilize the following tools: Stock locator database—†The stock locator database required for proactive decision making will be an adjunct of the inventory file in a state-of-the-art space management system. A running record will be maintained of the stock number, lot number, and number of pallet loads in each storage location. Grid coordinates of the reserve area, including individual rack tier positions, must therefore be established, and the pallet load capacity of all storage locations must be incorporated into the database. † Grid coordinate numbering system—Warehouse numbering system should be developed in conjunction with the storage layout, and should be user-friendly so that workers can quickly locate currently stocked items and open storage spaces alike. Communication systems—Again, this can be a valuable investment if the business’s warehouse requirements are significant.Such facilities often utilize fork lift machinery that can be used more effectively if their operators are not required to periodically return to a central assignment area. Current technology makes it possible for the warehouse computer system to interact with terminal displays or other communications devices on the fork lifts themselves. â€Å"Task assignment can then be made by visual display or prin tout, and task completion can be confirmed by scanning, keyboard entry, or voice recognition, † observedTransportation and Distribution.Maximization of storage capacity—Warehouses that adhere to rigid â€Å"storage by incoming lot size† storage arrangements do not always make the best use of their space. Instead, businesses should settle on a strategy that eases traffic congestion and best eases problems associated with ongoing turnover in inventory. Some companies choose to outsource their warehouse functions. â€Å"This allows a company that isn’t as confident in running their own warehousing operations to concentrate on their core business and let the experts worry about keeping track of their inventory, † wrote Bergin.Third-party inventory control operations can provides companies with an array of valuable information, including analysis of products and spare parts, evaluations of their time sensitivity, and information on vendors. Of course, businesses weighing whether to outsource such a key component of their operation need to consider the expense of such a course of action, as well as their feelings about relinquishing that level of control.Read more:Inventory Control Systems – cost, Computers and inventory, Warehouse layout and operationhttp://www. refe renceforbusiness. com/small/Inc-Mail/Inventory-Control-Systems. html#ixzz19yNe0cgT How to cite Related Literature-Inventory System, Papers

Duties Of Auditor

Questions: 1. Would King Queen be liable to EFL? Provide Specific Case References to support your Answer. 2.Would your answer change if EFL had written to King Queen advising you that they intended to make a loan to Impulse and were relying on the 2012 audited Financial Report to assist them in making their Decision? 3.Define Actual and Perceived Independence, and Explain the importance of each. 4.For each of the above Independent situations list any Professional Standards and Regulatory Requirements Breached and Discuss possible Alternative Courses of Action the Auditor should have taken in order to properly discharge their Professional Responsibilities. Answers: 1.An auditors report is for those who are outsiders to the company such as financiers, creditors and such other suppliers. Therefore it is their duty to ensure that the audit report contains all the material facts stated in detail i.e. it should reveal the true and fair view of the said report. The present case study clearly states that the auditors of Impulse Pty. Ltd are liable to EFL for the losses they have suffered due to the loan they extended to the company basis the audit report. As on 30 June 2012, i.e. the audit period it was evident that the conduct of the company was not well and that it was suffering from liquidity crisis. Further the auditors also did not find it necessary to conduct an additional audit of the various assets or get it conducted by an expert as per ASA 240 (Auditing and Assurance Standard Board. 2013). They ended up giving a report which was unqualified free from all material misstatements. A financier will always trust the work of an auditor as he is ex pected to perform his duties with integrity and honesty. They gain confidence over the performance of an organization basis the audit report and thus they are expected to disclose all the important data relevant for the users and other decision makers. The auditing standards i.e. ASA 200 also defines the fact that independence in the conduct of an audit assignment is the key to a fair work (Auditing and Assurance Standard Board. 2009). An auditor is expected to do periodic valuation of the assets of the firm so that the balance sheet portray a true picture of the asset liability position of the company. Transparency is another key factor which the auditors should pay attention to as it is their professional duty to perform their work keeping in mind all the assurance standards and the requirements of the profession. As is rightly stated in Pacific Acceptance Corporation Ltd v Forsyth (1970), an auditor is a professional who is expected to perform his duties with care and due diligence without any kind of undue influence. Professional scepticism is what is expected out of all auditors i.e. if they have any hint with regards the performance of the company deteriorating, they should extend their scope of audit and give an opinion which is in the best interest of the investors and such other users of the financial statements. However the level of scrutiny will vary from company to company and in the said scenario the auditors performed their duties against professional standards. Therefore since EFL had extended working capital loan to Impulse Pty. Ltd basis the audit report, thus their claim against the auditors is not incorrect and they are equally liable to EFL for the losses they have incurred. 2.An auditor has immense authorities basis which they can easily detect frauds that the management is doing. As a professional they are expected to perform their work with independence without any undue influence. The said case study clearly shows that the loss incurred by EFL was due to a failure on the part of the auditor to conduct their duties professionally (Patel, 2014). Even though they were aware of the current scenario of Impulse Pty Ltd. yet they did not propose to conduct further investigations into the asset valuations of the organization. Unethical practice and lack of independence is what is proved by the conduct of King and Queen in this case study. Even if EFL had asked the auditors prior to extending loan to the company and even after the same they remained quite then also in such a situation the auditors would be liable for the losses suffered by EFL. Had they disclosed the actual position of the company even at that time , then they would have been saved from being liable to the losses, simply because then the financiers would have extended loan basis the actual scenario. However although the said scenario frees the auditors from the current litigation but it does not free him from the litigation brought in by other users of the accounting statements since they are still unaware of the facts. 3.Actual Independence: When the auditors do not have any material interest in the financials of the organization they are auditing, then it is described as a situation of actual independence. Thus real independence means that when an auditor is performing his tasks then he is maintaining the highest possible degree of honesty and professionalism. This kind of independence emphasises upon the state of mind of the auditor who is perfuming the task in the actual scenario. Its importance cannot be ignored as it confirms that the audit is conducted with full vigour and truth (CPA Australia, 2013). There is no interference of the client and the opinion stated is in the best interest of the various users of the audit report. Perceived Independence: A situation where the auditor tries to pretend to be independent is defined as perceived independence. Many a times an auditor is seen to be standing on the crossroads where one way leads to a negotiation with the audit client and the other leads to giving an independent view without any undue influences. When such a scenario arrives then the auditor is said to take a decision which is free from prejudices even though he is in a state of bargaining. The importance of perceived importance is that it helps the auditor to perform his task tactfully wherein the main motive of the profession i.e integrity, objectivity and honesty is not defeated( Dwyer, 2015). Thus pretending to be an independent auditor is equally important as is being one in the actual sense. 4.As per Section 140.1 of the APES 110 Code of Ethics for Professional Accountants, the principle of confidentiality states that the confidential data obtained of an organization whose accounts are being audited cannot be used for fulfilling any personal work such as completion of an assignment of university. However Section 140.7 states that disclosure of such information is permissible only if consent from the client is taken and it is permissible under relevant laws as well (APESB 2010) In the said situation Bob was auditing the accounts of Club Casino and came across data which would be relevant in his university assignment and therefore uses the same after carefully removing all the references about the company so as to maintain confidentiality. However the same is in contradiction to the relevant sections. He should have taken a written concurrence from the authorities of the company before using the data as per former Rule 301 and preferably the permission should have been in writing as per Rule 391. Thus if he takes permission then he can use the said data of Club Casino for his personal use. A company secretary is an officer of a company and as per Section 324 of the Corporations Act 2001, an auditor cannot be appointed for performing dual role of an auditor as well as a company secretary (Corporations Act 2001). For becoming the company secretary, the auditor will have to resign from his post as an auditor first before accepting the said engagement as it is against the professional criteria of independence. In the said scenario Wendy can be appointed as a company secretary for a period of six months only if he first resigns from his present post as an auditor. The main crux of an audit is independence, but in the present case the same is not in line with the said concept of independence. As per Section 290.115 of the APES 110, members of an audit team are required to determine whether a self interest is existing in the present engagement with an audit client (APESB 2010). Such an interest may be when the member who is sent to audit the accounts of the client has an employee who is related to the auditor. In the present case also Leo who was being sent to conduct the audit of he internal control of the cash system of Precision Machinery Limited is in contradiction to the theory of independence of an auditor as his father is a factory foreman there. Since such an appointment is not in line with the regulatory requirements thus such an engagement is not done appropriately. Further if the same is to be done by Leo only then a former permission of the same has to be taken from the client and the work of Leo has to be revisited and checked again by another auditor or his supervisor thoroughly so that the independence in conduct of the job does not get defeated. In the said circumstances the auditors who have still not received audit fees should not have threatened to resign, instead should have delayed the audit as there could be a chance that the client accepts such a resignation and the audit fees becomes a bad debt. However in the said case the client offers the auditor new furniture which totals to only 50 percent of the total audit fees and the auditors agree to set off the same with the entire amount. The same is also incorrect. They should set off 50 percent against the furniture and take the balance in cash from them. Further to this 25 percent shareholding is offered to a member of an unrelated listed entity should be accepted only after informing the other members of the audit firm and obtaining their due consent(Luttrull, 2012). If the same is not informed then it would take the shape of bribery in settlement of 50 percent against the total audit fees. References Luttrull, E.G., (2012), Rules for a CPA on Accepting Gifts From a client, Available at https://www.ehow.com/info_12010461_rules-cpa-accepting-gifts-client.html (Accessed on 09th December 2016) Auditing and Assurance Standard Board. (2009). Auditing standards ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards. Available at https://www.auasb.gov.au/admin/file/content102/c3/asa_200_27-10-09.pdf (Accessed 14th December 2016) Auditing and Assurance Standard Board. (2013). Auditing Standard ASA 240 The Auditors Responsibilities Relating to Fraud in an Audit of a Financial Report, Available at https://www.auasb.gov.au/admin/file/content102/c3/Nov13_Compiled_Auditing_Standard_ASA_240.pdf (Accessed 14th December 2016) Patel, Y., (2014), A Review on Role of Auditor in Corporate Governance The Auditors Perspective, International Journal of Management and Business Studies, vol.4, no. 4 CPA Australia Ltd., (2013), Independence Guide, Available at https://www.cpaaustralia.com.au/~/media/corporate/allfiles/document/professional-resources/auditing-assurance/independence-guide.pdf?la=en (Accessed 09th December 2016) Dwyer, R.J., (2015), Perception or Reality : Auditor Independence and Objectivity, Available at https://thegaap.net/perception-or-reality-auditor-independence-and-objectivity-in-the-accountability-process/ (Accessed 14th December 2016) In the said scenario Wendy can be appointed as a company secretary for a period of six months only if he first resigns from his present post as an auditor.