Management Planning and Control
Table of Contents
Table of Contents 2
1. Key actions and results 3
2. Organisational context 3 2.1 Organisational strategy 3 2.2 Employee control problems 4 2.2.1 Lack of directions 4 2.2.2 Lack of motivation 4 2.2.3 Personal limitations 4 2.3 Processes and output 4
3. Management Control System 5 3.1 Action controls 5 3.1.1 Preaction reviews - Audit Management Information System (AMIS) 5 3.1.2 Action accountability and Redundancy - employee/partner involvement 5 3.2 Result controls 6 3.2.1 Audit reviews 6 3.4 Personnel controls 6 3.4.1 Training and provision of resources 6
4. KPIs 7 4.1 Financial 7 4.1.1 Organisational - legal expenses 7 4.1.2 Individual - individual training expenses 7 4.2 Non-financial 8 4.2.1 Organisational - growth in client base 8 4.2.2 Individual - rate of identification for material items 8
5. Evaluations 8 5.1 Audit Management Information System (AMIS) 8 5.2 Action accountability and Redundancy – employee/partner involvement 9 5.3 Audit review 9 5.4 Training and provision of resources 10 5.5 Time budget 10
Appendix 11 Audit Process (KPMG. 2010, Braiotta et al., 2010) 11
6. References 13
1. Key actions and results
This report focuses on the design and evaluation of a Management Control System for the Auditing division of “Pierre & Silva” (P&S), a hypothetical established second-tier, industry-specialised accounting firm operating in competition with the Big 4 and other second-tier accounting firms.
One of the most important challenges facing the auditing industry is its ability to provide high quality audits . Recent survey reveals investors’ confidence in Audited Financial Information had held steadily at 70%, down from 80% since the GFC . To address quality problems, key actions that need to be controlled across the audit division consist of:
Preparing financial information using appropriate accounting standards, and applying them consistently
Providing
Table of Contents 2
1. Key actions and results 3
2. Organisational context 3 2.1 Organisational strategy 3 2.2 Employee control problems 4 2.2.1 Lack of directions 4 2.2.2 Lack of motivation 4 2.2.3 Personal limitations 4 2.3 Processes and output 4
3. Management Control System 5 3.1 Action controls 5 3.1.1 Preaction reviews - Audit Management Information System (AMIS) 5 3.1.2 Action accountability and Redundancy - employee/partner involvement 5 3.2 Result controls 6 3.2.1 Audit reviews 6 3.4 Personnel controls 6 3.4.1 Training and provision of resources 6
4. KPIs 7 4.1 Financial 7 4.1.1 Organisational - legal expenses 7 4.1.2 Individual - individual training expenses 7 4.2 Non-financial 8 4.2.1 Organisational - growth in client base 8 4.2.2 Individual - rate of identification for material items 8
5. Evaluations 8 5.1 Audit Management Information System (AMIS) 8 5.2 Action accountability and Redundancy – employee/partner involvement 9 5.3 Audit review 9 5.4 Training and provision of resources 10 5.5 Time budget 10
Appendix 11 Audit Process (KPMG. 2010, Braiotta et al., 2010) 11
6. References 13
1. Key actions and results
This report focuses on the design and evaluation of a Management Control System for the Auditing division of “Pierre & Silva” (P&S), a hypothetical established second-tier, industry-specialised accounting firm operating in competition with the Big 4 and other second-tier accounting firms.
One of the most important challenges facing the auditing industry is its ability to provide high quality audits . Recent survey reveals investors’ confidence in Audited Financial Information had held steadily at 70%, down from 80% since the GFC . To address quality problems, key actions that need to be controlled across the audit division consist of:
Preparing financial information using appropriate accounting standards, and applying them consistently
Providing
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