Management audit is diagnostic research of the management technologies in order to determine their actual effectiveness, making the necessary changes in the process of production management, commercial, legal and social work of the enterprise. Our agency is working in the sphere of project management and management audit, and ready to offer solutions to all its clients.
Management audit – a comprehensive audit of the management accounting system of the enterprise.
Management accounting is the basis for making management decisions and is a mechanism for rapid response to changes in the current situation, an objective assessment of their own business activities for making the most informed decisions.
What is management accounting for?
Through the management accounting system is provided:
- Operational and reliable information on the status and results of the operation of the enterprise within the framework of compliance with the goals set
- effective control over the organization’s financial flows, liabilities, and assets
- up-to-date information for planning the activities and assessing the strengths and weaknesses of the organization
- transparency of the financial management system
The use of invalid data in decision making can lead to the most undesirable results, the accuracy and timeliness of obtaining objective information about the state of the enterprise is the key to the success of a modern company!
What are we doing?
In the course of management accounting audit, our employees determine:
- accuracy and efficiency of the information provided
- effectiveness of accounting methods and management reports developed
- optimal use of confidential data protection methods at the enterprise.
The management audit pursues a goal that is to systematically check the quality of the functioning of the management system and its segments. The list of main tasks of an internal audit of an organization includes:
- supply chain research;
- problem evaluation of the management system;
- critical analysis of the organizational and legal structure;
- improvement of management accounting, analysis, planning;
- development and implementation of management audit methods in business practice;
- adjustment of the management system based on its diagnosis.
Other tasks include the assessment of management analysis and its improvement, the study of the progressive experience of other countries in terms of organizing management audits, and the creation of an automated management audit system. Managerial audit in a broad sense is an economic diagnosis of the company’s existing system of strategic and tactical management of its production, commercial and social activities for the subsequent development of a set of comprehensive measures aimed at eliminating the identified deficiencies.
The internal audit of the organization has always existed. At the present stage, only a professional approach to control measures in the field of management can lead to tangible positive results. Control is performed by:
- the author’s methodology – based on the professionalism of the manager or consultant. These individuals independently from the mechanism of a certain function;
- the results of comparison with the activities of other companies specializing in a similar economic segment. In this case, the manager chooses for himself an example of actions, which becomes his guideline in his work;
- the approved rules and standards distributed to key elements of the organizational system. For this, continuity is formed in the analysis and improvement of the management system over a significant time period.
In the course of the internal audit of the management system, various audits are carried out, which can be divided into two groups/ In the first group are included the control measures to assess the effectiveness of management accounting. And the second group is formed for control of the organization.
According to the current legislation, management accounting is not subject to strict state control. There are no clear regulations, requirements, rules. Each company chooses the format and principles on which the audit of management activities and reporting is based. At the same time, errors and omissions in the process of developing such a system can bring significant problems to the company. KSK groups will protect your activity from such difficulties and risks.
We will undertake an audit of the enterprise’s management reporting, develop a system that will include the following elements:
- operational accounting in management;
- budgeting as part of financial planning;
- analysis and reporting (DDS, GAM, balance sheets).
In the course of management accounting, the collection, synthesis, analysis of information necessary for an enterprise to make important decisions about current activities, increase profitability is carried out. The necessary data on business transactions are reflected in the statements. Only management accounting can 99% reflect the real situation in the enterprise. It is focused on identifying the current state of affairs and the needs of managers. This is the internal information of the company, which is not publicly available.
Features of risk auditing in Digital Agency London
Management is fraught with risk. Taking a decision, company management is based on data, indicators, statistics, information about what is happening in the departments and divisions. In this case, a management audit of risks in the organization’s business is very important. In addition, firms are required to regularly prepare financial statements. This is a large package of documents with a variety of indicators and transcripts.
The results of the management audit are needed for:
- owners of companies and their founders;
- management of organizations, including lower and middle managers;
- members of supervisory boards;
- insurance companies that serve the company;
- rating centers.
The main users of the internal audit also include credit bureaus and management staff selection centers.