The paper "Auditing Inherent Risk: Flaws in Safety Culture" is an outstanding example of a finance and accounting assignment. Flaws in the safety culture of Woodside Petroleum limited are very dangerous. The culture represents a set of shared norms and values upon which personnel in the organisation make decisions. Having a safety culture in the company is simply the subset of the overall culture reflecting the general approaches and attitude to risk and safety management (Johnsen et al. , 2007). Woodside Petroleum limited is involved in a risky business in terms of the safety of its employees.
The company must have an appropriate safety mechanism and culture for ensuring that all its employees are very safe when they are on duty and off duty as well. Notably, the employees may some time to time or on certain occasions not observe the safety measures while on duty. These actions expose them to serious safety risks including burn, severe injuries and even death. There might be fatalities as a result of workers being struck by, caught in or caught between hazards from multiple sources such as falling equipment, moving machines and high-pressure lines (Skogdalen et al. , 2011). How is it a risk? The auditors may fail to identify lapse in safety measures and flaws in the safety culture in Woodside Petroleum Limited.
This will raise the chances of injuries and death occurring. Such lapse and flaws in safety culture expose the workers to dare safety conditions. It is any time that the workers can get injured or die due to collision, being hit, being struck by, caught in or caught between machines or drilling types of equipment as the auditors may not detect them and recommend preventive actions.
The death of workers may be a big blow to the company as it would not only lose a human resource but also increase the cost of replacing the worker. The likelihood of this happening in Woodside Petroleum limited is very high due to the nature of work as well as lack of detection by the auditors. Drilling of oil involves heavy machinery and high power. As such, the employees are exposed to the risk of being inflicted injuries from the machines and the high voltage electrical power (Antonsen 2009).
Essentially, flaws in the safety culture of the company represents a high likely risk to the employees especially those directly involved in drilling. Moreover, Woodside Petroleum limited workers are exposed to fires and explosions. They face the risk of fire and explosions due to the ignition of flammable gases and vapors. Flammable gases and vapors and hydrogen sulfide can be released from wells, production equipment and trucks or even surface equipment (Skogdalen et al. , 2011). All these expose the workers to high risks of severe injuries and fatalities.
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