We should set a guideline which defines the standard for “urgent case” and  handle urgent case in the first priority

Yes, purchase all material from a sole supply will increase concentration risk, the production of our company will significantly influenced by Platinum Company such as Platinum Company increase the materiel price, lack of production or bankruptcy.

First I will understand the current practice of purchasing process, find out the improvement area, suggest for remedial action and follow up the remedial action actual implementation status.

Weak point:1) No criterion for “urgent case”
2) Store officer leave him key when he off work
3) No 100% inventory count
Solution:1) define  the standard for “urgent case” and  handle urgent case in the first priority
2)Increase a headcount for store officer, maybe he could work at night
3)perform 100% inventory count and do reconciliation

Initial cost= implementation cost for $5 million+Additionally a training cost was $1 million=6million
Annual cost=$ 0.5 million per year

1)        Less human error
2)        More précises
3)        Less cost( human resource reduction would be likely)

1)        Whether it is cost effective to implement a new technology?
2)        Whether the software vendor could provide enough training?
3)        Whether the software could process effectively in the real circumstance?

1)        Low efficiency, as all PR was marked as urgent, that means no PR was real urgent.
2)        Lack of monitoring of inventory, not 100% inventory counting, store officer give his key to other people when he offwork
3)        Purchase all material from a sole supply will increase concentration risk

1.       
Audit in charge        Understand his/her expectation for me        Mis-understanding        Enhance communication
2.       
Auditee        Material provider        Un-cooperate        Negotiation
3.       
Audit Committee member        Strategy provider        Our information useless        Prepare audit committee material properly
4.       
Process owner        Daily work processer        Un-cooperate        Negotiation
5.       
Audit coordinator        Material provider        Mis-understanding        Negotiation and day to day monitoring