The work was carried out in the Technical Services Business Unit, belonging to the Cubalse Las Tunas Branch, located at Francisco Varona No.264 Bajos between Nicolás Heredia and Lora, Tunas Municipality, Las Tunas Province. Consisting in the design of a Management Audit program for the electronics workshop of this Unit.
INTRODUCTION
From the restructuring process that has originated in the economy of our country, in search of economic efficiency, from which the Corporación de Comercio y Servicio Cubalse SA, has not been exempt; It was decided in 2007 that the existing Representation in Las Tunas would change to a Branch structure with several Business Units including the Technical Services Unit, which have greater responsibilities and functions that are new.
This situation has caused transformations in the procedures that the Technical Services Business Unit had, which means that all the processes it carries out are closely followed, so that there are no irregularities.
The problem posed is: Insufficiencies in the management control of the Electronics Workshop of the Technical Services Business Unit belonging to the Cubalse Las Tunas Branch.
The general objective of our work is to design a management audit program, which makes it possible to evaluate the degree of economy, efficiency and effectiveness.
The specific objectives are:
Prepare the theoretical framework of the research from the consultation of the updated literature on the object of study, on which we will base our research.
Design a management audit program in the Electronics Workshop of the Technical Services Business Unit belonging to the Cubalse Las Tunas Branch.
With the following hypothesis:
If the management audit program designed to the characteristics of the Electronics Workshop of the Technical Services Business Unit belonging to the Cubalse Las Tunas Branch is designed, it can be applied constituting a tool to improve the management process; helping to increase the economy, efficiency and effectiveness.
The method used was the materialistic dialectic and within it the Logical-Abstract. The procedures used according to those used by the aforementioned method were: analysis and synthesis and induction - deduction.
The work is structured as follows:
Chapter I. Characterization of the Business Unit, theoretical foundation, where definition, evolution, stages, scope, risks, sampling, specialization, evidence, finding, price of default, time and techniques of management audit are addressed.
Chapter 2. Program for conducting a Management Audit Electronic Workshop of the Technical Services Business Unit belonging to the Cubalse Las Tunas Branch.
CHARACTERIZATION OF THE BUSINESS UNIT
GENERAL DATA
Entity: 10115-Servicios Técnicos, Located at: Francisco Varona 264 Bajos between Nicolás Heredia y Lora. Tunas Municipality, Las Tunas Province.
Subordinated to: Cubalse Las Tunas Branch
Date created: 06/01/2006 Telephone: 34-62-75
E-Mail: pupo @ cubalse.cu
Working hours: From: 8.30 a.m. To: 5.30 pm (Manager, Accountants, General Activities Manager, Warehouse Manager, Brigade Managers, Reception, Workshops and Services Assistant)
8.30 am to: 5.30 pm (Dependent ATMs).
License to operate in CUC: G0457170000 of October 12, 2004.
Company purpose and organizational structure;
Corporate purpose covered by: Resolution No. 6879 of April 7, 2007.
- The Unit will be authorized to carry out the storage, distribution, wholesale and retail commercialization of products and merchandise in general, in foreign currency, according to nomenclature approved by the Ministry of Internal Trade. Carry out the import of products according to approved nomenclature Ministry of Foreign Trade and act as an agent for the exclusive distribution of brand products in the national territory and abroad, in foreign currency. Provide the entire range of services provided by the commercial company, using electronic commerce techniques, in foreign currency. Offer both in Cuba as abroad project, design, creation, assembly, elaboration, guarantee, after-sales, repair and maintenance services and others for the purposes of photographs, videos, advertising, promotion and public relations,included in bases and packaging, public and advertising materials, printing and reproduction, in currency. Providing project services, assemblies, elaboration, after-sales guarantee of electrical household appliances, repair and maintenance in the entire range of products subject to marketing, including closed circuits television, systems and networks for smart buildings, intrusion and fire protection systems, internal and external atmospheric protection and private telephone networks, data transmission systems, as well as other types that arise as a result of technological advances, in currency.Provide services for the preparation of technical opinions in order to carry out the activity of the commercial company, leasing of products and equipment sold by the commercial company to authorized customers,cargo transportation and home delivery, in currency. Offer light gastronomic services as a complement to customer service in their establishments, in currency. Provide consulting services, in national currency and currency. Manage and control commercial service organizations in Cuba and abroad, in currency.
Organizational structure
- The Unit is housed in a Modern architecture building, all made of concrete and metal carpentry, which is shared with the Commercial Department.
Being organized by the following areas: Reception, Economic Area, Electronics and Technology Workshop, Climate and Refrigeration Workshop, Warehouse, Wholesale and Retail Store and Photovideo.
- It consists of an economic office and a reception in the front of the premises where the offices are located. The unit manager has his office together with the commercial department, not having the essential requirements such as privacy and confidentiality. Unit has two stores, one for wholesale sales and one for retail sales. The Business Unit has a location for Electronics and Technology workshops, which does not meet the conditions for the development of work because it does not have the capacity required and a Workshop for the Climate and Refrigeration activity. It has a Pantry which is intended for making coffee or tea, there is also a bathroom in the unit's patio. There is a storage area divided by the different areas,within the premises of the Business Unit. It has an Generating Group that also provides service to the Branch when there is an impact on the electrical network. The total perimeter area, where this unit is located, measures approximately 400 square meters.
Main customers
Among the main clients we can mention: Provincial PCC, Pescatun, Provincial Government, Provincial and Municipal Health, Provincial Commerce
Main suppliers
Among the most important suppliers for the Business Unit we can mention: Corporación Copextel, Cimex, Gases Industriales.
Approved Workforce 22 Workers
Broken down as follows:
|
Position or Occupation |
Salary Group |
Occupational Category |
Cover |
| Manager | XIV | D | one |
| General Activities Charge | SAW | S | one |
| Counter C | X | T | two |
| Mec.A repairer Electing Equipment Brigade Chief | IX | OR | one |
| Mec.A home appliance repairman | IX | OR | two |
| Cameraman Photographer | IX | S | one |
| Tec. Air conditioning Refrigeration Brigade Chief | VII | T | one |
| Tec. Air conditioning Refrigeration. | VII | T | two |
| Esp.Serv.Tec. and Inf Chief of Brigade | IX | T | one |
| General Tec. In Technical Services to Equipment and Systems. Infor. | VII | T | one |
| Dependent Cashier | VII | S | two |
| Warehouse Manager | IX | D | one |
| Warehouse Clerk | V | S | - |
| General assistant services | II | S | one |
| Recp. Piz and General Telephones | III | S | one |
| Mechanic B Servicenter Team | V | OR | one |
| Total | 19 |
Note: It remains to be filled the Warehouse Clerk, Climate and Refrigeration Technician and Mechanic B Servicentro Team, which are pending to be covered and approved by the Cubalse Las Tunas Branch.
The manager was appointed according to Resolution No. 33/07 of February 1, 2007.
Warehouse Structure:
- It has a Warehouse which is divided into the following areas:
01 Breakdowns
03 Auxiliary Materials
05 Inputs
07 Warehouse
08 Dining room and Cafeteria
09 Waste Commercialized
16 Warranty Parts
39 National Production
41 Expedited Waste
45 Waste of supplies
Last control action executed:
Action Date Rating
Special Check by MAC 12/19/2006
The Business Unit has undergone other control actions, some of which are listed below:
Action Date Rating
Inspection (Territorial Audit Group) 02/20/06 Acceptable
Special Audit (UCAI DITA Branch) 12/30/04 Mal
System Audit (Parent Company Audit Group) 2/17/04 Poor
Most significant issues detected in the last control action:
- Violation of internal procedures of the Technical Services management when the box is found in a collective office. The Joint Resolution of the Ministries of Finance and Prices and Informatics and Communications of 2004 is not complied with, when used for the processing of accounting information, automated systems that are not certified by the competent authority, which does not guarantee the reliability and integrity of the information that is issued. In the implementation of Resolution No.13 / 2006 of the Ministry of Audit and Control, indications are not complied with, when present deficiencies in the Prevention Plan drawn up, referring to the identification of the causes and conditions that cause possible manifestations, not specifying the dates of execution and control.
Other data or documents to request
Personnel working in the Accounting Area
| NAME | POSITION | FUNCTIONS |
| Yamilet Reyes Martínez | Accountant. C | · Carry out operations inherent to the Inventory System, inventory of supplies and tools, the payroll of the month, surprise tonnage to the central cash register. Request the movements of Tangible Fixed Assets and update the listings to the units. Make the missing and surplus files. It updates the act of material responsibility to the workers for the custody of supplies and Tangible Fixed Assets. File copies of sales invoices to third parties, receipts and transfers to units. |
| Nercy Fernández Pérez | Accountant.C | · Carry out operations inherent to the OT system, process and file these documents, at the cash desk and where appropriate. Send the area export and OT every Friday. Registers and controls the feeding of the workers of the unit. Receive the invoices for expenses and services of the units and deliveries to the economy with the corresponding payment mandate. Receive checks issued by customers and deliver them to economy. |
Situation of the Accounting Records in Use:
| Main Records Issued | Date Last Entry | Name of the Person in charge of the Registry |
| · Supplies inventory control | 03/31/07 | Yamilet |
| · Control of tangible fixed assets by area of responsibility. | 03/31/07 | Yamilet |
| · Sales register for boxes and vouchers. | 03/31/07 | Yamilet and Nercy |
| · Record of sales to third parties. | 03/31/07 | Yamilet and Nercy |
| · Intermediate registration. | 03/31/07 | Yamilet and Nercy |
| · Inventory adjustment record | 03/31/07 | Yamilet and Nercy |
| · Adjustment register due to code change. | 03/31/07 | Yamilet and Nercy |
| · Exit records for transfers. | 03/31/07 | Yamilet and Nercy |
Computer systems that are applied in the different subsystems and other techniques that are used.
- SI - Automated Inventory System.
Other Aspects:
Responsible for General Activities
Responsible: Odalys Hernández Cobo (Human Resources, Security and health, Defense, and Attention to man)
Brigade Chief of Air Conditioning and Refrigeration.
Responsible : Frank Argote Pérez ( attends the warranty and post-warranty teams that enter the workshop, controls work orders evaluating returns, repairs and assembles climate equipment). Resolution No. 3/2006 dated May 29, 2006.
Chief of Electronics Brigade .
Responsible: Yoiser Gómez Hernández ( Repairs household appliances, attends warranty and post-warranty teams that enter the workshop, controls work orders evaluating returns, and assembles home appliances). Resolution No. 2/2006 dated May 29, 2006.
Chief of Technology Brigade
Responsible: Daniel Pérez Hernández (Repairs computer equipment, the warranty and post-warranty that enter the workshop, controls work orders evaluating returns and assembles the equipment and provides service maintenance to the entire branch system). Resolution 4/2006 dated May 29, 2006.
Warehouse Manager.
Responsible: Rubén Ortiz Téllez: (Receives and disappoints the merchandise that enters the unit, controls and checks the inventories of 10% and 100% of the resources under its custody, makes delivery through adjustment, transfers and invoices of the disappointed products) Resolution 2/2007 dated January 26, 2007.
Main accounts associated with the Accounting System:
| Not. | Name | Associated account |
| 01 | Merchandise for Sale Computer Act and T | 187 |
| 02 | Auxiliary Materials at CUC | 197 |
| 03 | Cafeteria Goods in CUC | 197 |
| 04 | Useful, tools and similar in use in CUC | 201 |
| 05 | Defective Goods for Sale in CUC | 206 |
| 06 | Cost of Selling the Services Provided | 881 |
| 07 | Retail Cost | 810 |
| 08 | Wholesale Cost | 811 |
| 09 | Operations Expense | 825 |
| 10 | Retail sale | 900 |
| eleven | Wholesale | 901 |
| 12 | Sale Services | 909 |
| 13 | Sale Services Warranty | 910 |
Single Audit Record Review
In the review carried out, it was found that the provisions of the internal indications for the use, maintenance and control of the Single Audit File of the Cubalse Corporate Group of the Supervision and Audit Department are not complied with, since:
- Not all the documents are identified in the upper right margin with the consecutive number that corresponded to them in the Document Control Record Model. The 3 Folder (Files) are not enabled, with the Audit documents, the Measurement Plans remaining in one. and Monthly compliance reports, and the Passive File Documents. Not all the sheets of the Document Control Record Model correspond to the format attached to these indications.
Constitution of the Board of Directors
By Resolution No. 50/2007 dated March 5, 2007, signed by the General Director of the Cubalse Las Tunas Branch, the Board of Directors was constituted, as follows:
| Name and surname | Actual charge |
| Francisco Pupo García | Manager |
| Odalys Hernández Cobo | Responsible for General Activities |
| Yamilet Reyes Martínez | Accountant. C |
| Frank Argote Pérez | Chief of Climate and Refrigeration Brigade |
| Yoiser Gómez Hernández | Chief of Electronics Brigade |
| Daniel Pérez Hernández | Technology Brigade Chief |
DEFINITION OF MANAGEMENT AUDIT
The Management Audit consists of the examination and evaluation that is carried out in an entity, to establish the degree of Economy, Efficiency and Efficacy in the planning, control and use of its resources and to verify the observance of the pertinent provisions, with the aim of verify the most rational use of resources and improve the activities or subjects examined.
This audit tends, among other purposes, to determine:
- if the entity acquires, protects and uses its resources in an economic and efficient way and if its activities or functions are carried out efficiently; if the entity achieved the objectives and goals set effectively and if the operating procedures and internal controls are effective; and the causes of inefficiencies or wasteful practices.
This type of audit will be targeted, selectively, at activities and matters that, from the economic point of view or due to their characteristics, are considered convenient, for which the following elements will be taken as a basis:
Economy
It refers to the terms and conditions under which human, financial and material resources are acquired and used, both in the appropriate quantity and quality, and at the lowest possible cost, and in a timely manner.
That is to say:
- the right resources, in the right quantity and quality, at the right time, in the right place; and at the agreed price.
For an entity to work with economy, it is necessary that, regarding tangible fixed assets, inventories, financial resources and the workforce; do not buy, spend and pay more than necessary.
In order to determine whether the foregoing is fulfilled, the auditor should check, among other aspects, whether the entity rationally invests resources, namely, whether:
- they use adequate resources, according to technical and quality parameters; they save these resources or lose them due to lack of control or due to insufficient storage and working conditions; they use adequate and necessary workforce; workers take advantage of the working day, etc..; and if monetary and credit resources are used optimally.
The analysis of the components of the total cost can also provide useful information to determine excessive, unnecessary and undue expenses.
Efficiency
It refers to the relationship between the resources consumed (inputs) and the production of goods and services. Efficiency is expressed as a percentage, comparing the input-production ratio with an acceptable standard (norm). Efficiency increases as more units are produced using a given quantity of inputs.
Working efficiently is equivalent to saying that the entity must carry out its activities always well. An efficient activity maximizes the result of a given input or minimizes the input of a given result.
Among others, it must achieve:
- that the norms of consumption or expenses are correct and that the production or services conform to them; that the waste that originates in the production process or in the service provided is minimal; that the labor norms are correct; that make the most of the installed capacities, that the technical-productive parameters are met, in the production or service process, that guarantee the required quality; and That all workers know the work to be done and that it is necessary and convenient for the activity.
It should be borne in mind that the efficiency of an operation is influenced not only by the quantity of production, but also by the quality and other characteristics of the product or service offered. The result of the auditor's work will be to determine the degree of efficiency in the use of human, financial, material and natural resources in the performance of the entity's own activities, based on feasible considerations, in accordance with the objective reality of the moment in which the entity carried out its management.
Effectiveness
It is the degree to which an activity or program reaches its objectives, goals and other effects that it had been proposed.
This aspect has to do with the results of the entity's work process, so it must be verified:
- that the production or service has been fulfilled in the expected quantity and quality; and that the product obtained or the service provided be socially useful.
The auditor should verify production or service compliance and make comparisons to the plan and prior periods to determine progress or setbacks. You should also consider the durability, beauty, presentation of the product, if it were the case and degree of satisfaction of those for whom it is intended. It is recommended to receive criteria from customers on the items produced or services provided.
Interrelation of the 3 «E»
These three elements (Economy, Efficiency and Efficacy) must be related to each other, when the entity's results are presented in the Audit Report, taking into account:
| Economy: | Correct supplies at the lowest cost. |
| Efficiency: | Inputs that produce the best results |
| Effectiveness: | Results that provide the desired effects. |
In addition, they must influence the auditor's criteria regarding cost-effectiveness, that is, obtaining the desired effects at the lowest cost.
It should be borne in mind that the performance audit does not constitute a simple economic analysis of the entity, but responds to a much more in-depth examination by not limiting itself to showing figures or explanations. This must check each element and expose uneconomic, inefficient and ineffective practices, detailing the causes and conditions that cause them and the effect they produce, that is, the price of non-compliance.
Likewise, the interrelation of the three elements (Economy, Efficiency and Efficiency) in relation to the planning, control and use of all the entity's resources must be taken into account. It is very important to clearly understand the concept and scope of the terms ECONOMY, EFFICIENCY AND EFFECTIVENESS and how they are expressed in relation to the human, financial and material resources available to an entity, since only then will the auditor be in a position to prepare a program. aimed at measuring their behavior and assessing their relationship.
EVOLUTION OR OF THE AUDIT
Initially, the audit was oriented towards the internal needs of companies to ensure the safe handling of money and the exact recording of transactions, as a service to the owner of the invested capital.
With the growth in the use of long-term credit as a substitute for part of the owner's capital, and the trend towards corporations with multiple owners, investors, the audit was directed towards the need to attest to the content of the financial statements, in which absent lenders and business owners could trust. In parallel, the government audit evolved, initially, to determine the legality of transactions and the security in the management of public money, eventually, focusing on the application of techniques developed by the profession of Public Accountant to examine Financial Systems and Internal Control, as well as to attest to the reliability of transactions made and financial reports.Today the audit continues to evolve, both in the private and public sectors, towards an orientation that, in addition to attesting to past operations, aims to improve future operations through the presentation of constructive recommendations aimed at increasing the economy, efficiency and effectiveness of the entity.
This new approach has been called, among others, Management Audit.
There are similarities and differences between Management Audit and Financial Audit, which are shown below:
| MANAGEMENT AUDIT | FINANCIAL AUDIT |
| SIMILARITIES |
| Study and evaluate the Internal Control System. | Study and evaluate the Internal Control System |
| DIFFERENCES |
| It aims to help management increase its efficiency by making recommendations. | It issues an opinion by means of an opinion on the reasonableness of the financial statements. |
| Use financial statements as a means. | The Financial Statements constitute an end. |
| It promotes the efficiency of the operation, the increase of income, the reduction of costs and the simplification of tasks, etc. | Gives reliability to the Financial Statements. |
| It is not only numerical. | It is numerical. |
| Their work is done in detail. | Their work is carried out through selective tests. |
| Professionals of any specialties related to the activity being audited can participate in its execution. | They are carried out only by professionals from the economic area. |
In order to make the interrelationship between the two types of audits understandable, it can be considered that the performance of a Financial Audit is present in the performance of Management Audits, which is generally observed in the following scheme:
| MANAGEMENT AUDIT | FINANCIAL AUDIT |
| Reviews and evaluates the economy and efficiency with which human, material and financial resources have been used. | Verify the transactions, accounts, reports or Financial Statements, corresponding to the period examined. |
| Reviews and evaluates the results of the planned operations in order to determine if the proposed goals have been reached, and the effectiveness of the processes. | Evaluates the conformity or compliance with current legal and internal provisions. |
| Evaluate the Internal Financial Control System. | |
| Examines and evaluates the planning, organization, direction and internal administrative control. |
The Audit is governed by generally accepted standards, which have been carefully and progressively developed by the profession of Public Accountant for several decades, being approved in the Inter-American Accounting Conferences to govern the Financial Audit. To date, there are no officially approved professional standards to govern the Management Audit, so the aforementioned have been used with the corresponding adaptation.
The Auditing Standards established in Cuba are in correspondence with the Generally Accepted Auditing Standards in international practice, which include: General, execution, and preparation and reporting standards.
EXPLORATION STAGES AND PRELIMINARY EXAMINATION
It includes the study that, prior to the execution of the audit, must be carried out of the entity, to know the following aspects:
- organizational structure and functions; flow of the production process or the service it provides, for which it must use the corresponding diagrams. characteristics of production or service; production capacity or installed service; production or service plan; cost systems, cost centers, areas of responsibility, expense budgets and their behavior; sources of supply of raw materials and fundamental materials; destination of finished production or services provided; total number of workers, grouped by occupational categories, with their respective qualifications; existence of consumption norms and technological charts, as well as updated cost sheets; existence of work norms; review the information that works in the single file that contains the results of the audits,tax inspections, checks and verifications, previous; verification of financing sources; evaluation of the internal accounting and administrative control system, for which it will be taken into account: know the established information systems and if they are timely and dynamic; check compliance of the principles of internal control; include all the verifications that may be necessary to reach conclusions regarding the effectiveness of internal control; and verify the behavior of the means that guarantee the effectiveness of internal control; examine and evaluate the documents, operations, records and financial statements that make it possible to determine whether they reasonably reflect your financial situation and the results of your operations, as well as compliance with the provisions economic-financial; assess reliability,sufficiency and timeliness of automated information processing systems; analyze the behavior of the entity's fundamental economic indicators; review economic reports and other documents that provide general information on the entity's situation; conduct interviews deemed necessary with leaders, technicians and other workers linked to the entity, including political and mass organizations; and make a tour of the areas that make up the entity, in order to observe the operation as a whole.review economic reports and other documents that provide general information on the entity's situation, conduct interviews deemed necessary with leaders, technicians and other workers associated with the entity, including political and mass organizations; and make a tour of the areas that make up the entity, in order to observe the operation as a whole.review economic reports and other documents that provide general information on the entity's situation, conduct interviews deemed necessary with leaders, technicians and other workers associated with the entity, including political and mass organizations; and make a tour of the areas that make up the entity, in order to observe the operation as a whole.
To know some of the aforementioned aspects, sources external to the entity may be used, if deemed necessary.
As can be seen, this stage is fundamental to the result of the audit.
At the conclusion of the same, the head of the audit should evaluate the advisability of issuing a preliminary report that summarizes the control situation.
This will be advisable when it is considered that the duration of the audit can be prolonged, with a view to allowing the administration to begin to adopt measures, which, when deciding, will contribute to lightening the final report.
PLANNING
Once the exploration has been carried out, the conditions will be created to carry out the planning of the audit, which must include, among others:
- The analysis of the elements obtained in the exploration, which should lead to: defining the aspects that must be verified, by the expectations that the exploration gave, as well as determining the areas, functions and critical matters; analyzing the reiteration of deficiencies and its causes; and define the forms or means of verification to be used;
Definition of the specific objectives of the audit.
- These will be presented to the empowered authority, to decide its approval, determination of the auditors and other specialists that are required.
Taking into account the proposed objectives, the magnitude of the work and its complexity, it will be determined:
- how many auditors are needed and what qualification should they have; and what other technicians are necessary and at what level of management. Flexible programs tailored specifically, according to the objectives set, that respond to the verification of the 3 «E» (Economy, Efficiency and Efficacy). These should be prepared by the participating auditors, reviewed by the head of the audit and approved by the supervisor or by the head of the area. Determination of the time that will be used to carry out the audit, as well as its budget.
EXECUTION
At this stage, as the title indicates, it is where the audit is properly executed, so you should:
- verify all information obtained verbally; and obtain sufficient, competent and relevant evidence.
Due to the importance of these aspects to support the work carried out by auditors and specialists, the following should be taken into account:
- that the tests determine the causes and conditions that originate the non-compliances and deviations; that the tests can be external, if deemed necessary; quantify everything possible, to determine the price of the non-compliance; pay special attention so that the audit results economic, efficient and effective, that is fulfilled within the budgeted framework, as well as that it serves as an instrument to help make intelligent and timely decisions; the work of specialists, who are not auditors, must be carried out on the basis of the objectives defined in the planning, the Head of the audit should be in charge of the orientation and review of the work, so that the outlined programs and, therefore, the planned objectives are satisfactorily fulfilled;the work must be adequately supervised by a specialist from the audit unit duly empowered to do so; and determine in detail the degree of compliance with the 3 «E», taking into account: condition, criteria, effect and cause.
REPORT
The presentation of the Management Audit Report must express in a concrete, clear and simple way the problems, their causes and effects, with a view to being taken by the executives of the entity as a management tool.
However, in addition, the following should be considered:
Introduction
The objectives that will be exposed in this segment will be the specific ones that were defined in the 2nd. Stage: «Planning».
Conclusions
- The price of non-compliance, that is, the economic effect of inefficiencies, uneconomic practices, inefficiencies and deficiencies in general, must be presented in summary form, and the causes and conditions that affected the degree of compliance with the 3 «E» and their interrelation.
Body of the Report
- Make an assessment of the effectiveness of the regulations in force. Everything that can be quantified must be quantified.
recommendations
These should be general and constructive, not committing the audit to future situations that may occur in the entity.
Annexes
The items that make up the price of default (material damages and economic damages) can be shown in a summarized way, as well as a summary of responsibilities.
Graphics can also be used to ensure better assimilation by the recipient.
Synthesis
Sometimes it is necessary to prepare a summary, which must reflect the most relevant findings in a pleasant, transparent, precise and concise way that motivates their reading.
TRACING
It is advisable, according to the degree of deterioration of the 3 «E», to carry out a retest every one to two years, allowing to know to what extent the administration was receptive to the findings shown and the recommendations given, given in any of the circumstances, that is, whether the administration of the entity was kept in the hands of the same personnel, as if it had been replaced by their mistake.
Regardless of the elements highlighted in the five stages described, there is a group of aspects that due to their importance must be kept in mind when examining the management of an entity, such as:
»Analysis of energy carriers
» Protection and hygiene at work
»Maintenance
» Standardization, metrology and quality assurance (NMAC).
»Organization of work and wages (OTS)
» Organization of the Administration. Structure and functions.
»Organization and production planning.
»Organization of transport.
»Aspects for a Socio - Psychological intervention
» Environment.
- Analysis of energy carriers.
The controls established by the entity to use these resources with economy and efficiency must be taken into account.
The real behavior in relation to the plan and the real of previous periods must be analyzed, as well as determining if the expense per unit produced or service provided is adjusted to the productive needs of the period studied.
Investigate specific situations according to the characteristics of the particular entity and the possibility of developing actions that reduce consumption.
- Protection and hygiene at work.
Among the fundamental objectives of the system of protection and hygiene at work are the guarantee of safe and hygienic working conditions, the prevention of accidents at work and occupational diseases, the improvement of working conditions, as well as the protection, in especially for women, youth and workers with reduced capacity.
Taking into account that man is a fundamental element of any production process, priority attention should be given to examining these aspects.
- Maintenance
This is essential to achieve the proper functioning of any productive or service activity, ensuring stable and efficient results, and compliance with planned preventive maintenance and quality assessment must be verified. The manufacture and recovery of spare parts and their economic effect, if planned or if necessary, should also be considered, as well as the magnitude, quality and consistency with which it is carried out.
Another aspect to take into account is that related to the conservation of equipment that is not in operation, evaluating the adequacy of the forms of protection established by the entity.
- Standardization, metrology and quality assurance (NMAC).
This aspect is of vital importance, since the implementation of an adequate NMAC system guarantees that the quality of production or services is as expected.
In relation to this, it must be verified that:
»The standardization is duly established according to the methodology;
»Metrology-related aspects are complied with, in accordance with the activity carried out by the entity;
»The established quality assurance system meets the requirements to achieve the best production or service results; and
»the personnel of these activities have the appropriate qualification.
- Organization of work and wages (OTS)
There must be an adequate organization of production and services, that is, that each workplace has the corresponding technical documentation and the information necessary to carry out its activity with the necessary means and materials in the established time. In addition, that the personnel have the required qualification and that all the feasible activities to regulate have elaborated technically argued norms through the different existing normative methods, which guarantees an optimal use of the workforce. Likewise, that the wages paid are in accordance with the work contents and the results obtained.
The verifications carried out will lead to obtaining sufficient evidence to evaluate the economy and efficiency in the planning, control and use of human resources.
- Organization of the Administration. Structure and functions.
Checking that the organizational structure of the entity corresponds to the requirements of importance, this means that an activity of vital importance is not subordinated to another of a lesser category, or that they are at the same level.
For this, the specific functions that each one must develop must be known, so as not to give room for uncontrollability and / or the creation of unnecessary subdivisions that only hinder the proper functioning of the system, which results in the use of excess resources, that is, inefficiency and uneconomic practices that considerably affect the results of the entity.
- Organization and planning of production.
The characteristics and type of production must be taken into account, which will determine the different displacement models to be carried out and the creation of the production flow, which must achieve adequate consecutiveness of the process, to avoid unnecessary interruptions.
The correct utilization of the installed capacities must also be verified to know if a favorable balance is achieved between the load and the capacity.
It should be observed if the raw materials, materials, fuels, parts, spare parts, utensils, tools, containers, packaging and finished products are handled in the quantities, qualities and established time, because, otherwise, they would hinder the activity.
- Transportation organization.
This aspect is divided when carrying out the analysis into: internal transport and external transport.
- Internal transport is that carried out between different operations or between production processes. This is closely related to the organization of the production process, to avoid setbacks it must be observed that it uses the necessary means that guarantee the adequate preservation of the technical characteristics and quality of the product and that its use is optimal., should be used in a rational way, guaranteeing that no trips are made in which the transportation capacity is not used to the maximum, and the places to and from where the transportation is to be carried out must be regulated to avoid superfluous trips and therefore unnecessary consumption fuel and motorcycle resources in general.
Also, compare the relationships between consumption, load and distance.
- Aspects for a Socio-Psychological intervention
To evaluate the performance of the executives and workers of an entity, it is necessary to know the objective and subjective factors that are present; For which the application of sociometric techniques to obtain fundamental information is very helpful.
- Environment.
The importance of preserving the environment in which we live is generally known, and therefore no activity should be allowed to endanger the natural conditions we have; for this reason, this aspect requires great care when carrying out a production or service.
It must be ensured that the waste is not dumped abroad in violation of current legislation. In addition, it must be taken into account when executing a new investment that it does not detract from the ecosystem.
The exams, checks and analyzes carried out by specialists must be collected in working papers, as well as quantified as much as possible; in addition, they must always be in correspondence with the objectives of this audit, which are to improve the degree of economy, efficiency and effectiveness of the entity, interrelating them.
SCOPE OF THE MANAGEMENT AUDIT
In the management audit, both the administration and the personnel who carry out the audit must agree on the general scope, if it is known that this audit includes a detailed evaluation of each operational aspect of the organization, that is, the scope you should keep in mind:
- The satisfaction of institutional objectives The hierarchical level of the Company The organizational structure The individual participation of the members of the institution.
In the same way, it would be appropriate to consider in the performance audit, due to the breadth of the objective of this type of review:
- Regulations:
Evaluate compliance with the legislation, regulations and procedures established by the state organs and agencies.
- Efficiency and Economy
It involves the use of personnel, facilities, supplies, time and financial resources to obtain maximum results with the resources provided and use them in operations, at the lowest possible cost.
- Effectiveness
It relates to the achievement of the goals and objectives for which the resources are provided.
- Safeguarding of assets:
Includes protection against subtraction, obsolescence and misuse.
- Quality of the information:
It covers the accuracy, timeliness, reliability, sufficiency and credibility of information, both operational and financial.
Therefore, the auditor should be alert to situations such as:
- Procedures that are ineffective or more costly than justifiable. Duplication of efforts of employees and organizations. Opportunities to improve productivity by automating manual processes. Excess personnel in relation to the work to be carried out. Failures in the purchasing system and accumulation of unnecessary or excessive amounts of property, materials or supplies.
In the exploration and preliminary examination stage, the scope of the audit should be well defined, and this, to a large extent, may define the size of the tests, therefore the selection of the sample and the method to be used, as well as the risk to which the auditor submits.
RISK APPLICATIONS AND SAMPLING IN THE MANAGEMENT AUDIT
According to the International Auditing Standard (ISA) No. 1, when introducing the concepts of relative importance and risks in the audit, it is pointed out that:
… »In forming his opinion on the Financial Statements the auditor carries out a series of tests designed to obtain a reasonable assurance that the Financial Statements are adequately preparing all their aspects. Given the performance of the auditor on a test basis, as well as other limitations of its function and of any Internal Control system, there is an unavoidable risk that an important error will remain hidden »…
We can extend this assertion to the work carried out in the management verification due to the need to obtain reasonable security in the measurement of the economy, efficiency and effectiveness.
In the same way, it is inferred that the design and selection of samples will then be extensible to the management audit, applying statistical or non-statistical methods.
RISKS IN THE MANAGEMENT AUDIT
The performance audit when performed shall not be without errors and omissions of sufficient significance that influence the evaluation to be expressed by the auditor in his report. Therefore, the audit should be planned in such a way that there are reasonable expectations of detecting errors of relative importance; from:
- Professional criteria of the auditor Legal and professional regulations Identify small errors with significant effects
In this type of audit we will also have to take into account the three components of risk:
- Inherent risk: That important errors occur due to the characteristics of the Company or the Organism. Control risk: That the Internal Control System does not prevent or correct such errors. Detection risk: That the errors not detected due to deficiencies in Internal Control are also not recognized by the auditor.
It would be necessary to assess the existence or not of management audit risks.
- Know the risks inherent to the activity, the environment and the nature of the information. Consider the adequacy of the Internal Control design and test the effectiveness of its procedures. Determine the substantive procedures contained in the program to be applied, after having evaluated the Internal Control System. Extension of the substantive tests applicable to the Company towards related third parties.
Furthermore, it would be important to consider some generalized factors of audit risk that can be adopted in each case.
- Internal Control System.
Determine the confidence that the management has regarding the operation of the Internal Control System assuming that there are not:
- Non-compliance with standardized procedures. Late detection or non-detection of errors or deviations. Delayed or null resolution of deviations. Little experience in personnel. Unreliable information systems.
- Public image.
Evaluate the risks inherent in the protection of active assets or adverse public image considering:
- Probability of occurrence of frauds Complaints of the public Errors of the criteria that are applied to make decisions External barriers that affect the actions of the Company
- Changes at the organizational level.
Identify the existence or not of repetitive changes at the organizational level and systems, mainly serving:
- Rotation of personnel. Reorganizations in the operation of personnel. Growth or reduction of personnel. Implementation of new systems. Alterations of a cultural nature.
- Complexity
Evaluate the possibility of the existence of errors that may go unnoticed due to a complete environment, mainly caused by:
- The nature of the activities The scope of automation The geographical dispersion
- Audit size.
Measure the importance of the size of the audit by referring to the number of people, both the audited entity and the auditors, the physical volume of the documentation and social impact, recognizing that the larger the risks.
- Management interest
Determine the importance that the top management assigns to the audit, thus granting all the facilities in the development of the tasks to the auditors and their team.
- Weather
Consider the possibility of making errors, or not detecting them, depending on the time of preparation and execution of the audit that has been truly planned and used.
SAMPLING IN THE MANAGEMENT AUDIT
The auditor, when carrying out the performance audit and considering these risk factors (in any of the types of risks), will have to decide the method to select the sample and its size; It would be impossible to cover in its entirety all the operations related to the management of the area to be used.
The inherent and control risks exist regardless of the sampling procedure. The auditor should consider detection risks arising from uncertainties due to sampling (sample risk) as well as those arising from other factors unrelated to it (non-sample risk).
In the operational audit the auditor in the Initial Survey phase and in the Investigation and analysis phase requires the most exhaustive investigations possible to determine the causes of the problems.
The sample size is conditioned by the degree of assurance that the auditor plans to obtain from the sampling results.
In the management verification, the auditor has to perform compliance tests to determine if the Internal Accounting Control and the Internal Administrative Control comply with the expected requirements that allow a reasonable reliability from the financial point of view for the former and an efficient administration for the second.
For all this, the possibilities or not of errors must be considered, taking into account the planning of the tolerable error, considering in turn the materiality criterion, which may include the following steps.
- Study the levels of errors identified in other audits. Recognize changes in policies and procedures followed by the client. Obtain sufficient evidence.
Auditors employ both approaches to sampling techniques; that is, statistical sampling and non-statistical sampling.
In non-statistical sampling the auditor subjectively incorporates the Internal Control, the relative importance and the risk in the audit, justifying his judgment in intuitive mechanisms.
This sampling has several disadvantages as it does not provide the auditor:
- A quantitative estimate of the amount of risk taken. A systematic, affordable, objective method of determining sample size or to prove that sample size was adequate. An objective method of evaluating the effect of errors found. Ensure that samples are free of bias.
However, the use of this sampling has become widespread in the world, since the auditor relies on his expertise and professional judgment, which on many occasions has an acceptable level of success.
On the other hand, statistical sampling can be considered as a tool that helps auditors form judgments, but auditors' knowledge of certain statistical terms is required.
In the statistical method, the sample size is determined, the items that make it up are selected and the evaluation of the results is carried out through mathematical methods based on the calculation of probabilities.
Let's look at some types of statistical sampling:
On Accumulated Amounts
The selection of the sample is made on amounts and not on the number of documents, establishing a maximum precision limit. It can be applied through the computer.
In the Management Audit, those data or results of greater or lesser amounts could be considered depending on the fundamental characteristic that is audited and how this has historically behaved.
Numeric
It is a combination of the interval selection method and the sampling on accumulated amounts, thus determining an interval on statistical bases. Less used, it could refer to the time intervals in relation to the results.
Attributes
Determine the attributes or qualitative characteristics of an audit sample, delimiting the level of confidence, precision, and the error rate or maximum percentage of error that the auditor can accept or estimate for the population subject to sampling. Own management verification that must analyze the qualitative aspects calculating these parameters from general criteria in other periods or Companies.
Of Variables
Determine the representative samples of the population and the approximate (quantitative) estimate of the total, when this total is not known or there is uncertainty or lack of confidence in the reported figure, according to mathematical methods, closely related to the measurement of an implanted system therefore it can be widely used in this type of audit.
In all these statistical methods, tables are used that provide greater certainty in the result, but that are based on the auditor's criteria, for example, to determine the error rate, the percentage of risk with overconfidence.
The management or operational auditor may use any of these statistical methods to determine the sample size in the verification of compliance with policies and procedures in order to complete the goals and objectives outlined in the area of auditing.
In our opinion, to apply the compliance and substantive tests, both statistical and non-statistical sampling can be very useful, but special emphasis should be placed on the detailed knowledge of the operation or area being reviewed, since the dimension of the sample to be selected and therefore the chances of incurring detection risks would be greater.
By way of summary we will mean actions or tasks to be carried out in the use of sampling in management audits:
- Planning of the audit risk levels, where security influences the Internal Control and the Company's analytical review procedures, which in turn influence the establishment and compliance of the policies and goals to be met to work with the economy, efficiency and effectiveness. Tolerable risk ratio against relative importance, that is, the maximum error in the estimate that the auditor is willing to assume or accept, making analysis of the specific area or operation to be reviewed so that some parameter that allows successful compliance does not cease to be completed of management. Determination of sample size,It depends on the sampling that is used, statistical or not, expressing in each case, as appropriate, mathematical or statistical formulas in addition to the auditor's judgment and the confidence of incurring the least number of errors. Sample selection, random selection methods may be used without restrictions such as systematic selection, using tables, for example, in the verification of areas such as Collections; Payments, Research and Development; Marketing; Protection and Hygiene at Work; Transportation, among others. Sample evaluation,Practice the audit procedures that you consider necessary using the sample items and the techniques of the management audit. In the same way, and based on the risk factors already mentioned, we can conclude that there are factors that influence the size of samples and that the management auditor should bear in mind: Confidence in Internal Control. Confidence in other audit procedures related to the type of transaction. Tolerable error size for a specific audit objective. Amount and expected frequency of errors.Number and value of the population. Total security required.
SPECIALIZATION
The auditors appointed to this new type of audit should train and specialize in the complex techniques used in it. Likewise, the knowledge and experience they possess in the different branches of the economy should be taken into account when appointing them, in order to obtain the expected results in the shortest time.
MULTIDISCIPLINARY TEAM
For the execution of management audits, it is convenient to create multidisciplinary teams that meet the demands of the specificities of each branch as well as the expectations of the auditee, allowing them to correct the objective and subjective factors that hinder the smooth running of the company. activity, causing inefficiency in its management. This must be integrated with economists, engineers, psychologists, lawyers, among others.
Likewise, it could also be used by the entity's specialists, after having selected the area to be audited and the person who can serve as a liaison and who, being a specialist, can help as such, or can propose the right people to support the work of the auditors.
When specialists from the entity are used, written opinions or certifications of the evaluation carried out must be requested so that it can be used in the audit reports.
When choosing the auditors to integrate the groups or work teams, it is advisable that they meet certain requirements and also fulfill certain tasks, regardless of the content and functions of the position, which are set out below:
AUDITOR
AUDITOR HEAD OF AUDIT
AUDITOR - SUPERVISOR
LEGAL ADVISOR SPECIALISTS
ENGINEER AND ARCHITECT
PSYCHOLOGISTS
SUFFICIENT AND COMPETENT EVIDENCE
The evidence will be sufficient, when by the results of a single test or by the concurrence of the results of several different tests, this has been obtained in the indispensable quantity, so that the auditor comes to the conviction that the facts he is trying to prove within a universe and the criteria whose correctness it is judging have been satisfactorily verified.
It is impossible in any audit engagement to bequeath to absolute certainty, however, within a person's judgment formation, there is a degree of assurance in which you can state things with full confidence that you are not making a bold statement or risky, even when you don't have absolute certainty about them. This degree of security, dictated by prudence and which is the guide that governs most of human activities, is called moral certainty. It is this certainty that the auditor must achieve in order for him to be able to give his professional opinion in an objective manner and complying with the purposes and duties of his professional activity.
The result of the application of the audit procedures must be sufficient to provide the auditor's judgment with that degree of security called moral certainty.
The evidence is competent when it refers to facts, circumstances or criteria that really have qualitative relevance within the examined and the tests carried out are valid and appropriate.
The supporting evidence must be competent, that is, it must refer to those facts, circumstances or criteria that really matter in relation to what was examined.
The simple accumulation of data, checks and elements that are not related to the fundamental and important objectives of the audit do not qualify as competent evidence.
The union of these two elements: sufficient evidence (quantitative characteristic) and competent evidence (qualitative characteristic), provide the auditor with the conviction necessary to have an objective basis in his examination.
Sufficient and competent evidence must be recorded in the working papers
DEVELOPMENT OF A FIND
A performance audit requires a clear understanding of the entity's expected and actual results in relation to its objectives.
These objectives must be determined in the entity in a way that allows measuring the results compared to them and establishing the criteria of success or failure in management.
Attention should also be paid to comparisons of what the entity is achieving, relative to third parties (benchmarking and parameterization) resulting in a large-scale improved basis for discussing productivity and efficiency issues.
The aforementioned determines the correct application of the procedure to fully develop each significant finding of critical areas such as: the condition, the criterion, the effect and the cause in order to adopt the corresponding measures.
BREACH PRICE
This is nothing more than the sum of the effects produced by the breaches, wasteful practices, inefficiencies, inefficiencies, economic damages, material, financial and human damages that are detected in the entity and have repercussions in society and the State.
The determination of the PRICE OF NON-COMPLIANCE constitutes a synthetic expression of the results of the Management Audit.
The accumulated experience indicates that in the Productive or service sector the Default price can be quantified as follows:
- Income not received due to failure to meet the objectives set for a given period. of price due to affectations of quality parameters. Unpaid salary payments in production or services. Excess in consumption due to non-application of standards or other measurement parameters. Excess adjustments due to shortages, losses, deterioration.
FUNDAMENTAL QUESTIONS
Among the essential questions in the auditor's mind for gathering information in the performance audit are usually used the terms: what, why, where, when, who, how, how much and why. However, it is convenient to ask what is being done, from the point of view of the systems and processes and what is being achieved, from the point of view of management results.
The answers to these questions allow the auditor to achieve good results in the investigations, make the execution time feasible and present in a concrete, clear and simple way the problems, their causes and effects with a view to adopting the measures that help to improve the degree of economy, efficiency and effectiveness existing in the entity.
A well-organized interview allows valuable information to be obtained in a minimum of time, this should be verified later, to verify its veracity.
The questionnaires are always helpful in the audit work, whether they are open or closed, they will give us the possibility of knowing conditions, cause, motive and other particularities that have to do with the degree of Economy, Efficiency and Efficacy that is exercised in the entity with respect to the planning, control and use of resources.
In practice, important achievements have been experienced in activities related to tourism, where the traditional methods of Economic Analysis support the evidence that answers the aforementioned questions.
Also in our country, public policy objectives are well defined, paying great attention to the achievements of programs whose objectivity is closely linked to the country's economic limitations.
AUDITING TECHNIQUES
When studying and evaluating the Internal Control System and determining the scope of the audit, the auditor must obtain sufficient, competent and relevant information in order to promote a reasonable basis for his opinions, criteria, conclusions and recommendations.
Precisely audit techniques are the various methods used by the auditor to obtain evidence.
The most used auditing techniques in financial auditing are:
EXAMINATION OR PHYSICAL INSPECTION
Physical observation of an asset.
FUNDAMENTAL INSPECTION
A document is observed to see if it is genuine, without alterations, authentic, with approvals and that they were correctly recorded in the record books and report. Pointing techniques are used to signal the revised activities in the documents.
CONFIRMATION
Written information is obtained directly from an external agent to be used as evidence, for example, confirming cash, accounts receivable, property titles, contingent liabilities and other claims.
REVIEW OF CALCULATIONS
It is done manually or computerized and does not have to be done in the original way, it can be done from the total figures at the end of the year to reach the weekly for example.
OBSERVATION
Activities around them should be continuously observed and vigilant for any deviations.
INTERVIEWS
Asking questions necessary for general knowledge of the job.
COMPARISONS
It is compared from:
- Information from the previous year.
- Plan information.
- Information from other companies in the same branch.
- Information calculated by the auditor.
- Information made by the Company.
The auditing techniques used in financial audits do not differ much from those practiced in performance audits.
The set of audit techniques constitute the procedures included in the audit program. In the case of the Management Audit, they will serve to review the administrative and operational processes of the various functions carried out in a Company.
MORE TECHNICAL UTILIZ A DAS A PRACTICING MANAGEMENT AUDITS
OBSERVATION
As its express name is to observe and can therefore include examinations of the physical aspects of an operation.
The observation is very wide, practically infinite, it can include from the observation of the work flow, the administrative actions of subordinate managers, documents, accumulation of materials, condition of the facilities, surplus materials, among others. The main characteristic of this technique is the spirit of penetration and depth that is applied to the performance of an action.
CONFIRMATION
It consists of independent communication with a third party to determine the accuracy or validity of a figure or fact.
Confirmation is frequently made by mail, and generally applies to cash, accounts receivable, accounts payable, investments, inventories, and facilities, limited to verifying the accuracy and existence of the matter subject to confirmation.
CHECK
Generally associated with the audit process, it is the technique of ensuring that things are as they should be.
Verify that each element of each of the documents is appropriate, and corresponds to current legislation.
Operations during the period that are audited and others that will culminate in subsequent periods may be verified.
INVESTIGATION
It is one of the most important techniques and consists of examining actions, conditions and accumulations and processing of assets and liabilities, and all those operations related to them.
This research can be internal or external, and it is usually carried out by means of questionnaires previously formulated for each function in which all those questions of general interest for the function would be included and that are normative for its performance and comparison.
Any of the other techniques can be used in this technique, as its objective is to obtain sufficient evidence to support a predetermined position.
ANALYSIS
It consists of analyzing the diverse documentation of the Company, analyzing both internal and external documentation.
Information is collected and manipulated in order to arrive at a logical deduction. It determines the relationships between the various parts of an operation, as well as the actual amount on the organization of the actions of its parties or the effect of agreements, contracts or regulations.
Analysis involves separating the various parts of the organization or the different influences on it, and then determining the immediate or potential effect on a given organization or situation.
EVALUATION
It is the process of arriving at a decision based on the available information. The evaluation depends on the auditor's experience and judgment and constitutes the substance of the audit results. An evaluation prints the auditor's personal stamp.
These techniques are applied in the different phases or steps to carry out the performance or 3E audit.
They can be identified with one or more phases or steps, since it would be unlikely to delimit or “cut” the auditor's work and eliminate the necessary link between them.
| AUDITING TECHNIQUES | PHASES |
| Observation | Previous exploration
Planning Execution |
| Confirmation | Execution |
| check | Planning
Execution |
| Investigation | Exploration Prior
Planning Execution Follow-up |
| Analysis | Exploration Prior
Planning Execution Follow-up |
| Evaluation | Report |
WEATHER
Management Audits, due to their complexity, tend to consume long times compared to other types of audits.
The head of the audit must take into account that the cost of this audit should not exceed the benefits and choose only the areas, functions or critical matters, thus speeding up its execution.
The Management Audit must be dynamic, with specific objectives and specific findings, allowing the results to be presented in a timely and convincing way, allowing administrations to adopt the necessary measures that help improve the degree of Economy, Efficiency and Efficiency existing in the entity.
The head of the audit, with the approval of the supervisor and the head of the audit unit, together and taking into account the different factors both of the personnel in charge of carrying out the audit and the particular characteristics or experiences of the activity to be audited, will program the corresponding time in each case for the execution of the different stages.
Here are some measures that tend to reduce the audit time, namely:
- adequate exploration and planning, as well as a systematic supervisory work, great importance is the specialization of staff and group composition, selection of critical areas, functions and / or subjects; and correct application of auditing techniques.
MANAGEMENT AUDIT PROGRAM FOR THE ELECTRONICS WORKSHOP
Objective of the Management Audit for the electronics workshop
Evaluate the effectiveness of the workshop to repair all the electrical appliances that have been returned by customers due to technical problems, which are marketed by the Business Units of the Cubalse Las Tunas Branch.
General aspects that have been taken into account in the preparation of the management audit program.
1.- Plans and Objectives.
Management plans and objectives of the Unit and of the workshop for the current year are discussed..
2.- Organization.
The structure of the workshop facilitates the fulfillment of the objectives and goals set for it.
3.- Policies and Practices.
Evaluate through a study the action that must be done to improve the effectiveness of policies and practices.
4.- Regulations.
Determine if the Unit is concerned with discussing and analyzing the regulations.
5.- Systems and Procedures.
Study the systems and procedures to see if they have deficiencies or irregularities in their elements under examination and devise methods to achieve improvements.
6.- Controls.
Determine if the control methods are adequate and effective.
7.- Operations.
Evaluate operations in order to specify which aspects need better control, communication, coordination, in order to achieve better results.
8.- Personnel.
Study the general needs of personnel and their application to work in the area subject to evaluation.
9.- Physical Equipment and its Disposition.
Determine if improvements could be made in the disposition of technology for better exploitation.
10.- Report.
Prepare a report of the deficiencies found and record in it the appropriate remedies.
Program to carry out a Management Audit of the Electronics Workshop of the Technical Services Business Unit belonging to the Cubalse Las Tunas Branch.
- Check if the responsibilities and functions of the workshop staff are well defined. Check if the department is adequately staffed. Check if the premises have the necessary security conditions. Check if there are procedures manuals for each job and if they are known. by the workers. Verify if there are adequate internal controls for the separation of functions. Verify if the working conditions are the most adequate. Verify if the structure of the area allows the fulfillment of the established objectives. Verify if the training is planned according to the needs of each one. Check the suitability of the review of the records of the jobs. Verify if this workshop contributes to the formulation of the strategic objectives of the company.Evaluate if the resources planned for the workshop work are necessary to achieve the short-term objectives. Verify the conformation of the records of the returned equipment. Verify compliance with laws and regulations. Verify if accounting controls are appropriate, to Starting from the economic facts originated in the workshop. Verify if the economic-financial analyzes carried out in the Unit reflect in detail the indicators of the electronics workshop Verify if corrective action is taken when non-compliance with the discipline is detected. Verify the procedure that is used to exit the warehouse to the different areas (Material request, Order model, Transfers, Adjustments, etc.) in correspondence with the Work Orders.Check if the supplies and tools delivered to the workshop are well controlled. Check the existence of the level of access by authorized personnel. Check the correctness of the Work Orders issued in the Electronics workshop. Check that the materials loaded to the Order of Work correspond to the reduced inventory and signed by the client. Check that the collection made to the client corresponds to the prices established for the materials used and labor. Make verification of the open Work Orders, their correspondence with the equipment deposited and the materials used. Verify the existence of the Material Liability Acts and the list of tangible fixed assets assigned to the workshop. Verify compliance with the Energy Contingency Plan,according to the program prepared by the Cubalse Business Group, according to Instruction 07/05 of Cubalse. Review the correct conformation of the Prevention Plan, according to the procedures established by the MAC in Resolution 13/06 and if the points are included within this vulnerable in the electronics workshop. Assess whether it is continually enriched and its compliance is evaluated periodically. Review compliance with Resolution No. 11/06 of the President of CUBALSE related to the execution of the Expense Budget and Evaluate the effectiveness of the analyzes of the board of directors of the unit of business regarding the execution of approved budgets and plans (variations, trends or significant changes and their causes).Review the correct conformation of the Prevention Plan, according to the procedures established by the MAC in Resolution 13/06 and if this includes the vulnerable points of the electronics workshop. Assess whether it is continually enriched and its compliance is evaluated periodically. Review compliance with Resolution No. 11/06 of the President of CUBALSE related to the execution of the Expense Budget and Evaluate the effectiveness of the analyzes of the board of directors of the unit of business regarding the execution of approved budgets and plans (variations, trends or significant changes and their causes).Review the correct conformation of the Prevention Plan, according to the procedures established by the MAC in Resolution 13/06 and if this includes the vulnerable points of the electronics workshop. Assess whether it is continually enriched and its compliance is evaluated periodically. Review compliance with Resolution No. 11/06 of the President of CUBALSE related to the execution of the Expense Budget and Evaluate the effectiveness of the analyzes of the board of directors of the unit of business regarding the execution of approved budgets and plans (variations, trends or significant changes and their causes).Assess whether it is continually enriched and its compliance is evaluated periodically. Review compliance with Resolution No. 11/06 of the President of CUBALSE related to the execution of the Expense Budget and Evaluate the effectiveness of the analyzes of the board of directors of the unit of business regarding the execution of approved budgets and plans (variations, trends or significant changes and their causes).Assess whether it is continually enriched and its compliance is evaluated periodically. Review compliance with Resolution No. 11/06 of the President of CUBALSE related to the execution of the Expense Budget and Evaluate the effectiveness of the analyzes of the board of directors of the unit of business regarding the execution of approved budgets and plans (variations, trends or significant changes and their causes).
Conclusions
The work carried out could constitute an effective management tool for the Technical Services Unit, based on the application of the management audit program, designed for the electronics workshop.
It also allowed corroborating the contents received in the subject Management Audit of the Master, every time knowledge was perfected.
recommendations
It is recommended that the Business Unit transmit it immediately to the Audit Group of the Head Office, to analyze and assess the possibility of incorporating this Management Audit program in the evaluation of the management of the electronic workshops of the Technical Services Units of the Cubalse Corporation.
Bibliography
- Methodological Guide for Conducting Management Audits. National Audit Office. Cuba. 1998. MAC Auditor's Manual. Resolution 44-1990 and Regulation No. 23-1991 State Finance Committee. Resolution 297/2003 of the Ministry of Finance and Prices Resolution No. 56/2000 and 64/2000 of the Central Bank of Cuba Resolution 026 / 06 of the MAC Decree Law 159 of the Audit Havana, Republic of Cuba, ONA, Resolution No.1 / 1997. Regulations Havana, Republic of Cuba, ONA, Resolution No. 2/1997. Auditing Standards Audit of Socialist CompaniesVérez Lasanta, Alberto. Havana. Audit.
