Image via Wikipedia The word management used in context of a business involves many meanings. It refers to the act of management of the organization and the business to achieve its final goal. It also refers to an entity that is in charge of the day-to-day operations of the organization. A management audit involves verification of the hierarchy and distribution of power in the organization to determine whether it is best suited for achievement of the ultimate goal of the organization. A third-party must do the audit to avoid conflict of interest. The management conducting an audit of itself may come up with a self satisfying report that praises every decision taken and structure installed. On the other hand, opinion of a third-party may be completely different. The concept of management audit has become popular because people are realizing that having the right structure and procedure for management of the organization makes a huge difference to its productivity. There was a time when a firm with access to the cheapest source of raw material or labor would make the maximum profits in the past. Today, the firm that manages its resources best is the one that will make a profit. Considering the huge stakes that the masses have in the economy of the country and the fact that big corporations have a huge role to play in the overall economic development, it is not surprising that management audit is considered a social necessity. It ensures inefficiency in such corporations does not lead to losses for the entire country at large. … [Read more...]
Business Audit ? Why Involve 3rd Party Professionals?
Image via Wikipedia What is the harm in conducting an audit of one’s business without involving any third-party? Any and every audit involves verification of the subject of the audit. An audit of the financial statement involves verification of every bit of information presented in the same. There must be a logical link between each transaction and the ultimate results shown in the financial statement. There must be sufficient proof in the form of documentary evidence or paperwork. To conduct the audit without involving a third-party professional is obviously going to lead to loss of credibility. What is the guarantee that the management shall not convert the audit into a rubber stamp exercise which simply approves every decision of the management? A fraud conducted by the management itself will never be caught because the judge and the thief would be the same. It is important to hand over the task of audit to outsiders even when one is carrying out an internal audit or a management audit of a specific department or a specific process. Accountability is a very important issue when public money is at stake. A wrong decision by the management or a decision based on insufficient or irrelevant facts should be identified and remedied. The process may involve censuring the actions of certain people associated with the organization. To make sure that the process is impartial and credible, it is important to involve third parties. What is more, audit is a professional exercise and requires the services of people who have been specially trained to carry out such an activity. … [Read more...]
3 Ways to Protect Yourself While on Business Trips
Once upon a time, there was a debit card. And he (for the purposes of this story, let's consider this card a male) was lonely. Why? Because his owner forgot him at a very strange, unknown ATM joint. The lights were off, and everything was sort of scary! Woo.... What was the debit card going to do? Basically nothing but sit there. Just then.... A stranger picked him up. There was a gleam in the stranger's eye. That wasn't good. The reason why it wasn't good was the fact that the stranger was going to misuse the debit card in ways about which he could only have nightmares. In fact, the whole ordeal was a complete nightmare. Seriously, folks--this is the essence of identity theft. And this particular case is specific on the grounds of business trips--where you go to places with which you're not familiar. Keep this in mind, though--this story is just one example. There are ways, however, to protect yourself. Identity theft restoration can be a breeze if you follow these simple steps.... Lose the Paper That shouldn't be too hard, really. With the rise of the internet in full swing, checkbooks are being exchanged for netbooks, and cash deposits are taking a backseat to automatic deposits. It's an efficient era. Part of the reason for that efficiency is the fact that it's secure, safe and reliable. No one can steal your money. No one can rob you. Your money is safe in cyberspace. Safety Measures Remember that sad debit card that got left behind? Let's go save the day, shall we? If ever you're in a business trip, and you realize you lost your card, do this one important thing: contact your bank immediately! What they can do is cancel the card and issue out a new one for you. Anyone that gets a hold of the poor piece of plastic will find that it's completely useless when they try to use it. Make sure that you do your research before going on the trip on locations of the branch of bank you use, because it'll help you out tremendously with the inconvenience of losing your card. Checks and Balances This is like the government. Better yet, make it like the military. You're the general. You're in charge. The fact is this: you put all your duties under one basket, and you could have an employee run away with it! So separate the duties. Put in some checks to ensure that each person on your work team is doing their job. You separate the duties when it comes to accounting, you can be sure to know that there's less of a chance of theft. Which Brings Us Back.... Back to the poor little debit card. But he's okay now! You've saved his life. And you can definitely rest assured that his life saved yours! How do you keep yourself and debit cards protected? … [Read more...]
Avoiding Hidden Fees on Credit Cards
Image via Wikipedia The credit card has its beginnings back in the early decades of the 20th century. Since then they have become a vital part of both personal and business finance. Credit cards allow people to purchase things on the basis that they do not have the cash at that point in time, but will pay a bank or financial institution at a later date for the "money" he or she borrowed via credit. With credit cards come many different kinds of fees. What a lot of people don't realize, is that most credit cards have an interest free period. So if you pay off what you owe within, for example, 30 days, then no interest fees will be charged on your purchases. This is a good way to save money, as many credit cards have very high interest rates. Some stores impose a surcharge if you are using a credit card. If you are not sure if a store you are at does this, just ask. Try to avoid using your credit card at as many of these types of places. It may only be a small surcharge such as 1%, but if you use your credit card at many places with a surcharge it will quickly add up. Use cash when you can. The best way to avoid any hidden fees on your credit card is to read the fine print in your contract. You'd be surprised at all of the varying hidden fees. Some banks charge a fee if you pay the card off, or cancel it! Before signing up for any credit card make sure you read the contract. … [Read more...]