Facilities Management Theory and Practice Assurance

Question: Discuss about the Facilities Management for Theory and Practice Assurance. Answer: Introduction: The current report intends to depict the pertinent failure related to Kingsley Read in arriving at the definite value of Plummet Travel Limited. Therefore, it covers whether due care has been properly exercised in the audit of Plummet Travel. In addition, the report portrays a vivid description of the contribution of Plummet Travel to the entire negligence. The focus of the case study is on due care and the person responsible for negligence has been identified. Thus, it enables the organisation to adopt pertinent measures, which might help in minimising the ramifications resulting in illegal or unethical actions. Thus, the measure utilised in due care primarily allows the firm to undertake pertinent actions for preventing illicit actions conducted on the part of its staffs. After careful investigation of the provided case study, it has been found that due care has not been properly utilised on the part of Kingsley Read while it has conducted the audit work of Plummet Travel. This is because the former has been appointed as an independent expert for carrying out its role. In addition, Kingsley Read has arranged program of standard work for testing the operating controls within the system. The motive behind undertaking these measures is to assure pertinent due care in the auditing procedure. However, Kingsley Read could not comprehend certain difficulties, which have been aroused after Plummet Travel has implemented the computer accounting system. Despite such unanticipated complexities, Kingsley Read has managed to conduct rightful audit adjustment and thus, the correct value of the audit report has been depicted. As commented by Alexander (2013), the due care negligence primarily prevents the organisations from unscrupulous measures taken on the part of its staffs along with limiting the legal actions on them. Thus, the organisations not practising due care are vulnerable to illicit actions, in case, their staffs are engaged in unscrupulous actions. Hence, it could be stated that Kingsley Read has exercised considerable due care while conducting the audit work of Plummet Travel. Thus, Kingsley Read could not be held liable for the issues encountered in the audit report. Contributory negligence: Based on the above evaluation, it has been found that Plummet Travel could not be blamed for the audit report negligence, since they have appointed a consultant for accurate file changeover. Moreover, the organisation primarily uses the computing system for enhancing its entire measures of accounting leading to unscrupulous actions. Therefore, the person to be blamed for the entire negligence is the appointed consultancy, since it has failed to transfer data into the computer system in an effective fashion. As laid out by Dennis (2015), the data conversion from one location to another requires concentration and consistency, which the competent professionals could achieve. However, from the case study, it has been found that the firm mainly appoints a consultancy that has incorrectly depicted the value of inventory. As a result, it has lead to unethical share value price of $1.10. Plummet Travel utilises consultancy and auditors for dissecting its methods of accounting. However, the organisation needs to incorporate new staffs for the utilisation of measures pertaining to accounting, which could have minimised the misstatement probability. However, the consultant utilisation has primarily enhanced the misstatement probability of related to auditing, since the firm has not accommodated a partner of audit for reviewing the conversion of data (Hardy, 2014). Hence, it could be inferred that Plummet Travel has been unaware of the entire misstatement related to inventory and it could not be held liable for the overall negligence. Duty of care: From the overall case evaluation, it has been found that Kingsley Read is not liable to provide duty of care to the parent company of New Zealand, since it has adopted all the pertinent steps. In accordance with the Duty of Care Act, the organisations not undertaking sufficient steps in minimising the unscrupulous process of the actions of the staffs need to be held liable. On the other hand, Kingsley Read has adopted all the necessary actions like considering an independent expert, gathering knowledge and continuing test on new system. However, Plummet Travel has appointed a consultant, which has been negligent in nature and thus, Kingsley Read could not be held responsible for any sort of due care. As mentioned by Stewart Shamdasani (2014), as per the duty of care act, the organisations following all the pertinent acts to restrict unscrupulous actions on the part of the staffs are not liable for any sort of negligence. However, the entire case study evaluation primarily depicts that Kingsley Read has not shown any sort of negligence related to due care to the parent company of New Zealand. Along with this, Kingsley Read has undertaken measures effectively such as providing training to the staffs and appointing an independent expert. As a result, it would help in nullifying the unethical practices conducted on the part of the parent company of New Zealand. Conclusion: The entire report has concentrated on determining that Kingsley Read could be held liable for the duty of care and hence, it could be sued on the part of the parent company of New Zealand. However, after the conduction of evaluation, it has been found that the parent company of New Zealand could not blame Plummet Travel in preparing its audit report. In addition to this, Plummet Travel is not liable for any negligence in misstatement, as the organisation has appointed a consultant that has misstated the valuation of inventory. In accordance with the Duty of Care Act, the organisations not undertaking sufficient steps in minimising the unscrupulous process of the actions of the staffs need to be held liable. On the other hand, Kingsley Read has adopted all the necessary actions like considering an independent expert, gathering knowledge and continuing test on new system. With the adoption of new technology, both Plummet Travel and Kingsley Read have not been able to gain an insight related to the conversion of data. Finally due negligence in relation to case law has primarily indicated that the organisation could be held partly liable for the problems arising out of unscrupulous conducts. References: Alexander, K. (2013).Facilities management: theory and practice. Routledge. Dennis, I. (2015).Auditing Theory. Routledge. Hardy, C. A. (2014). The messy matters of continuous assurance: Findings from exploratory research in Australia.Journal of Information Systems,28(2), 357-377. Stewart, D. W., Shamdasani, P. N. (2014).Focus groups: Theory and practice(Vol. 20). Sage publications.