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Trang Professional Lid operates business colleges. Its customers come from a range of profes- sions such as lawyers, medical practitioners, accountants and others. Trang delivers

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Trang Professional Lid operates business colleges. Its customers come from a range of profes- sions such as lawyers, medical practitioners, accountants and others. Trang delivers knowledge update courses that allow its customers to maintain their professional accreditations, as well as more generic courses such as supervisory skills, professional writing and so on. Trang has just invested a significant amount of money in a new integrated IT system that includes a customer booking system. inventory control for course material. purchase and sales recording. payroll and HR all linked around a nominal ledger and management reporting module. This new system was funded through bank borrowings. This is the first time the company has borrowed so extensively and it is starting to understand the effects of the terms and conditions applied to the loan that require it to maintain certain interest cover and gearing ratios. The colleges have classrooms full of customers and therefore, have a significant number of peo- ple in their buildings. The company is subject to strong health and safety rules as well as fire protec- tion legislation. One of Trang's main costs relates to property rental and one of its key performance measures is to maximise revenue per square metre. It is clear from feedback from students that the value they place on the organisation is directly linked to the lecturers that Trang employs. Lecturers quickly obtain a reputation in the marketplace and a good reputation is directly linked to higher class sizes. As a result, Trang seeks to create shlary packages that incentivise staff to maximise student numbers Required a) Identify and explain the business risks above bi Identity and explain the auditishabve Trang Professional Lid operates business colleges. Its customers come from a range of profes- sions such as lawyers, medical practitioners, accountants and others. Trang delivers knowledge update courses that allow its customers to maintain their professional accreditations, as well as more generic courses such as supervisory skills, professional writing and so on. Trang has just invested a significant amount of money in a new integrated IT system that includes a customer booking system. inventory control for course material. purchase and sales recording. payroll and HR all linked around a nominal ledger and management reporting module. This new system was funded through bank borrowings. This is the first time the company has borrowed so extensively and it is starting to understand the effects of the terms and conditions applied to the loan that require it to maintain certain interest cover and gearing ratios. The colleges have classrooms full of customers and therefore, have a significant number of peo- ple in their buildings. The company is subject to strong health and safety rules as well as fire protec- tion legislation. One of Trang's main costs relates to property rental and one of its key performance measures is to maximise revenue per square metre. It is clear from feedback from students that the value they place on the organisation is directly linked to the lecturers that Trang employs. Lecturers quickly obtain a reputation in the marketplace and a good reputation is directly linked to higher class sizes. As a result, Trang seeks to create shlary packages that incentivise staff to maximise student numbers Required a) Identify and explain the business risks above bi Identity and explain the auditishabve

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