PART C

Your CPA firm has been contracted by the state to serve as the internal audit function for The Commission on Workforce Development. The Commission was established several years ago by the state legislature to Tincrease the job skills of individuals receiving public assistance and help them obtain employment so as to be able to support themselves and their dependents. To accomplish this objective, the Commission enters into contracts with private sector contractors to train ndividuals in computer data entry, local area network administration, cable and telecommunications installation, auto mechanics, and other fields where they are acknowledged need for employees. The Program Works As Follows The Commissions staff identifies indviduals eligible for enrollment in the program through referrals from case workers in local county and city welfare departments. The Commission staff then determines whether the individuals need general skils, specific skills, or both and assigns them to entities with which the state has contracted for trianing services. The Commission also determines the specific fields in which training will be provided through periodic assessments of employer needs across the state. For purposes of this assessment, the state is divided into five regions. Training offerings are set for each region based on surveys of employers' current and expected needs Contractors are responsbile for a] providing individuals with the general work skills, if needed (literacy, basic math, etc.) and b) providing all individuals with specific work skills (training in auto mechanics, typing, network administration, etc.). Contractors are also responsible for helping all trained individuals to obtain employment. Your firm uses a business process approach to internal auditing A. Identify four key activities/processes involved in the operations of the Commission (there are more than four). Pricritize them in terms of significance to the board's operations (1 -most significant. 4-least significant) Signficance )Business Management- Oversee commission staff to ensure individuals are peoperly trained, adequately monitored, and suitably employable )Resource Management-Effective resource management process will provide adept employees& ) Marketing&Sales-Commisssion must efflectively convey to prospective employers that individuals are employable Supporting-Monitor private sector needs across the state on a weekly or monthly basis to ensure ) S employees are recevine training in the areas of hishest employer demand B. For the activity/process you ranked the most significant, idently and evaluste three risks. For each risk, identity a control that would help mitigate the risk Impact Probability 1) Selecting a contractor with limited skills& means to provide required knowledge to workers Prepare a checklst of job requirements/specifications before will have the resources & capabilities to proceed nclude for penalty claune in such cases to H providing contract to ensure the contractor ) Contractor breaches the terms of contract account for compensation of-incurred M ) Contractor providing unauthorized private coaching & aking money from individuals under the guise that they are government sponsored & authorized agency. the site to ensure no unjustifiable practices are occurring C. Deign an audit procedure to test the operating etfectiveness of each control identifed