SRE270 Building Economics | Business Risk Audit

SRE270 Building Economics | Business Risk Audit

Question:

Audit Results

Liability & Insurance

Risks identified Hunt Builders currently has public liability insurance for $5 million dollars. This level of cover is insufficient for the type of construction work that Hunt Builders currently undertakes. It also restricts Hunt Builders from applying for any State or Federal Government tenders as the minimum level of cover for these contracts is $20 million. Hunt Builders also does some construction work in inner city areas so there is a higher risk of a member of the public being injured.

Work Health & Safety

Risks identified Hunt Builders uses a forklift in its stores area and the operator of th forklift is unlicensed. There is insufficient signage in the stores area and persons walkthrough the area from time to time creating a risk of collision with the forklift.

Cyber security

Risks identified Hunt Builders uses 2 computers and a laptop computer to run the office. None of these computers have any form of virus protection, and none of the data for the business is currently backed up.

Financial

Risks identified Hunt builders uses a largely paper-based system of accounting that relies on the manual entry of transactions into a journal which are posted at regular intervals to a general ledger. The business uses a part-time book-keeper as well as Brendan Hunt and his wife to maintain the books. It is difficult for the business manager to get a clear picture of the financial position of the business.

Strategic

Risks identified Hunt Builders has a narrow customer base, and only has market presence in a relatively small geographic area. The business focus is almost exclusively on renovating existing buildings, and business has slowed a fair bit lately due to an uptake in new home sales. Research indicates that a local land-developer has recentl expressed interest in starting development on a new housing estate nearby.

Compliance

Risks identified A newly inducted apprentice of Hunt Builders does not hold a General Construction Induction Card (White Card). Further to this she has also not been sent a copy of the Fair Work Information Statement when she started her apprenticeship with Hunt Builders. Finally, the apprentice has not yet completed thepaperwork to arrange for superannuation contributions to be made on her behalf by Hunt Builders.

Operational

Risks identified Hunt Builders relies heavily on Brendan Hunt for all the construction work. If Brendan is sick then progress on currently projects is heavily impacted, and the apprentice is unable to work. It is also clear that a lot of the operational procedures are known only to Brendan and are not documented.

Read less
QUALITY: 100% ORIGINAL PAPER – NO PLAGIARISM – CUSTOM PAPER