Fat Function Steps 3 & 4
1. Advento, Faye Joanne G. AC 531 10:30-12:00 TTh
2. Alcober, Vincent Brian C. July 30, 2013
3. Kho, Monique Bea S. Finance, Accounting, and Treasury (FAT) Group
4. Marnoch, Philip W.
5. Ngalot, Ray Hamodi B.
6. San Pedro, Maria Lourdes S.
7. Sarigumba, Thomas Zachary P. STEPS 3 and 4 of the
10-Step Operational Audit Program Step 3: Develop Objective Criteria Regarding Operating Efficiency, Effectiveness and Economy
Effective Best Practices
Criteria
Performance Measure
(1)
Pay based on receiving approval only
Accounts payable are paid based on receipt
Time required to settle an accounts payable
(2)
Route all invoices directly to accounts payable
Reduced time in paying the suppliers
Days Payable Outstanding
(3)
Split payables processing based on discounts
The company pays within the discount period, if any
Percentage of the amount of discount taken over discount available/offered in a given period
(4)
Incorporate copy protection features into checks
Checks must have all the protection features as required by BSP
Absence of counterfeit checks
(5)
Issue single, summarized invoice each period
Sales are grouped for a specified time period
Number of invoices issued in a specified time period
(6)
Link the budget to key business drivers
A budget based on the company's overall strategy
Budget variances
(7)
Incorporate risk analysis into budget modeling
Use of Flexible Budgetary System
Sales volume, Sensitivity Analysis Results
(8)
Automatically Link the Budget to Purchase Orders
The budgeting process is linked with the Purchasing Database
Percentage of the amount of purchase orders over the budgeted amount
(9)
Issue a budget procedure and timetable
The budget process and calendar is followed
On-time performance of the budgeting process
(10)
Use online budget updating
Any changes made to the budget is reflected real-time
Number of errors and adjustments made to the budget and the time required to do
2. Alcober, Vincent Brian C. July 30, 2013
3. Kho, Monique Bea S. Finance, Accounting, and Treasury (FAT) Group
4. Marnoch, Philip W.
5. Ngalot, Ray Hamodi B.
6. San Pedro, Maria Lourdes S.
7. Sarigumba, Thomas Zachary P. STEPS 3 and 4 of the
10-Step Operational Audit Program Step 3: Develop Objective Criteria Regarding Operating Efficiency, Effectiveness and Economy
Effective Best Practices
Criteria
Performance Measure
(1)
Pay based on receiving approval only
Accounts payable are paid based on receipt
Time required to settle an accounts payable
(2)
Route all invoices directly to accounts payable
Reduced time in paying the suppliers
Days Payable Outstanding
(3)
Split payables processing based on discounts
The company pays within the discount period, if any
Percentage of the amount of discount taken over discount available/offered in a given period
(4)
Incorporate copy protection features into checks
Checks must have all the protection features as required by BSP
Absence of counterfeit checks
(5)
Issue single, summarized invoice each period
Sales are grouped for a specified time period
Number of invoices issued in a specified time period
(6)
Link the budget to key business drivers
A budget based on the company's overall strategy
Budget variances
(7)
Incorporate risk analysis into budget modeling
Use of Flexible Budgetary System
Sales volume, Sensitivity Analysis Results
(8)
Automatically Link the Budget to Purchase Orders
The budgeting process is linked with the Purchasing Database
Percentage of the amount of purchase orders over the budgeted amount
(9)
Issue a budget procedure and timetable
The budget process and calendar is followed
On-time performance of the budgeting process
(10)
Use online budget updating
Any changes made to the budget is reflected real-time
Number of errors and adjustments made to the budget and the time required to do