Summary
The present work entitled, Program to evaluate the management of the Servisa SA Branch, in terms of its degree of economy, efficiency and effectiveness, consists of eight procedures, which contain, surveys, verifications and verifications whose results based on the evidence obtained, will allow the auditor form a judgment as to the degree of compliance with the economy, efficiency and effectiveness in the branch object of the audit. It is recommended to submit this proposal to the consideration of the National Audit Office of the Servisa Business Group, for its possible generalization and to give continuity to this investigation by perfecting the proposed program.
Introduction
In recent times, the international environment has been characterized, by the existence of a systemic structural crisis, with the simultaneity of the economic, financial, energy, food and environmental crisis; with greater impact in underdeveloped countries.
In Cuba, when considering the Guidelines of the Economic and Social Policy, within the framework of the VI Congress of the Communist Party of Cuba, it is necessary to make an assessment of the state of the economy, and the problems to be solved taking into account the main events and external and internal circumstances present since the last congress of the Communist Party of Cuba.
Due to all the above, it is necessary for entities to optimally control and manage all resources, whether material, financial or human, in order to obtain greater economy, efficiency and effectiveness in their operations. For this, the existence of an adequate management of its resources and a correct internal control system is necessary.
Audit techniques and procedures, especially management or performance auditing, allow evaluating the quality and effectiveness of the management and the internal control system implemented in the entity, as well as detecting the problems related to these, which facilitates the process of decision making.
To carry out this type of audit, it is necessary to have an audit program. In the present work we carry out the proposal of a management audit program to carry out an audit in a branch of Banco Popular de Ahorro.
Program to evaluate the management of the Servisa SA Branch in terms of its degree of economy, efficiency and effectiveness
Objectives of the audit program:
Evaluate the activity of the branch regarding the effectiveness of the Internal Control System implemented, based on the objectives established in Resolution 60/2011 of the Comptroller General of the Republic, as well as its degree of economy, efficiency and effectiveness, applying tools such as observation, documentary review, interviews, questionnaires, surveys and determine the quality of the information, its timeliness, reliability, consistency and veracity, having as a reference a specific area
Procedures:
1. Evaluate Internal Control taking into account Resolution No. 60 of 2011 of the Comptroller General of the Republic of Cuba, which instructs the Basic Principles of internal control, components and standards.
- Evaluation of compliance with the work objectives, as well as the status of compliance with the deficiencies indicated by the control actions received… Verify the degree of implementation of the activity's procedure manual Evaluate the degree of compliance with the 3E (Economy, Efficiency and Effectiveness), price of non-compliance and the findings in the development of the audit.
1. Evaluation of the Internal Control System
- Apply a survey to the workers of the different areas on the knowledge in the internal control entity Check the domain that the top management and the rest of the group have on the basic principles of the Internal Control System Check if the bases for the identification and analysis of risks, their classification, vulnerabilities and whether the control objectives are determined. Preparation of the Risk Prevention Plan Check if the information available is timely Training received for the implementation of Internal Control, according to the Regulations approved in Resolution 60 of 2011 of the Comptroller General of the Republic Check compliance with the basic principles of Internal Control and preliminary evaluation of Internal Control.
2. Compliance with the work objectives and deficiencies indicated by the control actions received
- Request and review the plans of measures to verify compliance with the deficiencies indicated in the control actions received by the entity Carry out a documentary review through the minutes of the board of directors of the analysis of the fulfillment of the work objectives to date.Check that agreements are made in the board of directors for the analysis of the non-fulfillment of the work objectives to date and the measures taken for their fulfillment. Leaving documentary evidence of those responsible for enforcing them Check compliance with the level of activity for physical productions and values according to the approved budget Check if they are applying the Quality Management System and the Environmental Management System throughout the organizational structure.Check the level of customer satisfaction Check if they carry out technological audits of the different processes Check if the Corporate Identity Manual, Customer Service System has been implemented.
3. Implementation of the Manual of Procedure by Activity
- Verify that the Quality, Investments, Commercial, Purchasing and Energy manuals exist and check if they are implemented.
4. Evaluation of Compliance with the 3Es, Price of Default and Findings
- Verify the optimal provisioning in the maximization of the results, the performance of the available resources, as well as the desired effects. The quality and impact of the services provided Check the degree of non-compliance due to wasteful, inefficient and ineffective policy practices Evaluate the attributes: condition, criteria, cause and effect in the detection of the findings.
Planning
- Knowledge of the subject to be audited. Preliminary assessment of the Internal Control System. Define the control objectives, scope of the audit, as well as compliance with the deficiencies of State Control. Select the sample to be evaluated. Preparation of the general work plan of the audit, the individual plan and the audit program.
Execution Phase
In the execution phase, the auditor will put into practice the audit program prepared, using as a basis the sampling to discover facts, and taking sufficient, competent and relevant evidence that allows the assignment of responsibility for errors, will examine the degree of effectiveness and efficiency by the branch. The way to analyze if the objectives set are really measurable, key, achievable and verifiable, is achieved if they correspond to the strategies followed, established policies and existing plans for the branch.
Among the techniques to be used are questionnaires, surveys, visual observation, documentary review and the calculation of the reasons and indicators determined by the auditor, the scope of these instruments will be defined by the acting auditor based on his criteria. You should also review other sources of information, such as specific laws and regulations, organization and procedure manuals, organization charts, audit reports, and management reports. And the partial notifications of the audit.
Tracing
According to the degree of deterioration of the three (E), it is advisable to verify whether the direct managers of the audited area, on which recommendations were issued, have become aware of them, have been receptive and have taken the necessary measures to implement the recommendations given from:
- Preparation by the audited subject of the plan of measures. Evaluate and issue criteria from the moment the consultation is received the proposal of the disciplinary measures to be adopted by the subject audited, from the ten following the presentation of these. Review of the plan of measures presented by the auditee and the disciplinary measures taken.
The management evaluation will be carried out by giving opinions regarding the Economy, Efficiency, Efficiency, quality and impact of performance in the planning, control and use of resources, as well as in the observance of the provisions that are applicable in correspondence with the objectives of the audit.
Once the auditor has completed the work, the official and formal communication of the results thereof is carried out in accordance with the Cuban Auditing Standards that are approved by the General Comptroller of the Republic.
recommendations
- Submit this proposal for consideration by the National Audit Directorate of Grupo Empresarial Servisa SA, for its possible generalization Give continuity to this investigation by perfecting the proposed program Carry out training actions for all auditors who participate in the application of the management audit proposed.
Conclusions
As a result of the bibliographic review carried out on the Audit and specifically on the Management Audit and the audit program, it can be concluded that:
- The analysis of the consulted literature shows the importance of the Management Audit in the new approach to conducting audits, since it provides the management of each entity or business with the necessary elements for decision-making, as it highlights the Weaknesses of each activity and the trend towards the future. A program has been designed that will allow to evaluate the management of a Branch from one of its activities. Its application will obtain a series of positive and negative aspects that will allow to evaluate the Branch's activity from the perspective of Economy, Efficiency and Effectiveness.
Bibliography
- Armada, E, "The application of the new concepts of Internal Control in the Audit", Magnetic Memories, IV National Audit and Control Workshop, 2003. Armada, E. Methodology for conducting management audit. Doctoral thesis Havana. 1997 Decree Law No. 159 of the Audit. ONA Edition. Havana, 1995. Gene, R. “Changing Audit Objectives and Techniques” The Accounting Review, 1962, p. 697 Law No. 107/09 Of the Office of the Comptroller General of the Republic of Cuba Regulation of Law 107/09 Of the Office of the Comptroller General of the Republic of Cuba Resolution No. 60/2011 On the Rules of the Internal Control System Sánchez Rodríguez Luisa María Course on Management Auditing. Sawyer, LB "Modern Internal Auditing Practice" Alta Monte Springs, Florida, Institute of Internal Auditors, 1981,November 2005 Instruction and Procedures Manual of the Grupo Empresarial Servisa SA Branch
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