Auditing Business Functions and Activities

2021 ◽  
pp. 295-331
Author(s):  
Hernan Murdock
Keyword(s):  
2020 ◽  
Vol 26 (11) ◽  
pp. 2567-2593
Author(s):  
M.V. Pomazanov

Subject. The study addresses the improvement of risk management efficiency and the quality of lending decisions made by banks. Objectives. The aim is to present the bank management with a fair algorithm for risk management motivation on the one hand, and the credit management (business) on the other hand. Within the framework of the common goal to maximize risk-adjusted income from loans, this algorithm will provide guidelines for ‘risk management’ and ‘business’ functions on how to improve individual and overall efficiency. Methods. The study employs the discriminant analysis, type I and II errors, Lorentz curve modeling, statistical analysis, economic modeling. Results. The paper offers a mechanism for assessing the quality of risk management decisions as opposed to (or in support of) decisions of the lending business when approving transactions. The mechanism rests on the approach of stating type I and II errors and the corresponding classical metric of the Gini coefficient. On the ‘business’ side, the mechanism monitors the improvement or deterioration of the indicator of changes in losses in comparison with the market average. Conclusions. The study substantiates the stimulating ‘rules of the game’ between the ‘business’ and ‘risk management’ to improve the efficiency of the entire business, to optimize interactions within the framework of internal competition. It presents mathematical tools to calculate corresponding indicators of the efficiency of internally competing entities.


Author(s):  
Robert B. Handfield ◽  
Anand Nair

Counterfeiting is a problem many companies do not want to acknowledge or talk about. However, ignoring the problem is likely to have the effect of encouraging counterfeiters to go unchecked. A multilayered strategy that adopts several approaches and engages the entire organization is needed to address the counterfeiting problem. This chapter provides a set of recommendations to address the issue of counterfeiting. Initially, the size of the problem must be estimated and the return on investment approximated. This can help define the need for a team of experts to work in this area, leading to a set of performance metrics that are aligned with business objectives and outcomes. Next, the key focal product segments should be targeted and a system for identifying products through product trademark registration with customs authorities should be completed. In the end, combating counterfeiting is not a supply chain problem, it is not a legal problem, nor is it a packaging and covert marking problem. It is a global problem—one that impacts all organizations, large and small. All business functions need to be part of the discussion, not just a single brand security function. Failure to approach counterfeiting in this manner will simply allow the problem to continue to grow.


1956 ◽  
Vol 30 (1) ◽  
pp. 18-45 ◽  
Author(s):  
Lawrence H. Leder ◽  
Vincent P. Carosso

Robert Livingston's career provides the first opportunity to consider in detail the emergence of an early New York businessman. Trained in business in Rotterdam, he brought to the New World the experience, knowledge, and techniques of one of the most advanced commercial centers of his day. On the Albany frontier he applied the Old World's business methods to advantage and gradually emerged as a dominant figure in colonial New York. His records and business correspondence leave no doubt that Livingston belonged to that class of businessmen often referred to as sedentary or resident merchants, though he did not employ as many agents and partners as his later, more mature counterparts. Neither did he engage in as many ventures or perform as many functions as the Browns, Hancocks, and other late eighteenth-century merchants, nor did he create an impressive business organization at home or abroad as was customary among certain European contemporaries. Still, as a wholesaler and retailer, importer and exporter, shipowner and land speculator, Livingston was an early New York practitioner of diversified business functions and investments. His extensive land dealings, no doubt motivated in part by the social prestige attached to real estate, were undertaken primarily as a source of credit and revenue. Livingston Manor was operated as a business enterprise: some of it was cultivated on Livingston's behalf, parts were leased to tenants who provided for the Lord of the Manor not only rents but a steady market for the goods he obtained in overseas trading ventures, and other sections were devoted to various manufacturing enterprises. Livingston's political life was an integral and necessary part of his business ventures, which reflected at all points the total instability of most colonial institutions. From the details of Livingstons many-sided commercial life emerges a rare picture of an embryonic business society in which the means were sorely taxed to achieve the ends conceived by ambitious men.


2021 ◽  
Vol 27 (1) ◽  
pp. 41-50
Author(s):  
V. A. Komarov ◽  
◽  
A. V. Sarafanov ◽  
S. R. Tumkovskiy ◽  
◽  
...  

As part of the digital transformation of various areas of human activity, the urgent task is to transform existing business processes (BP) in order to increase their variability according to the needs of the customer, to increase productivity, quality and competitiveness of products. The introduction of end-to-end digital technologies allows for this. The article examines the experience of transforming the BP of experimental research in solving a number of applied tasks in the field of electronic instrumentation, which is obtained as a result of the introduction of operation technology for test, research and laboratory equipment based on the concept of multitenancy. Developed on the basis of the experience of the authors, a number of industrial samples and prototype multiuser distributed measurement-control systems implementing this concept have allowed to transform the following processes: end-to-end BP of tests on-board electronic equipment of spacecraft (communications, relay, navigation, geodesy, remote sensing, etc.); BP of forming the operational load of the spacecraft's on-board relay complex; BP of conducting experimental laboratory research in the industry training system. The effectiveness of modernized BP was evaluated on the basis of their formalized models and a set of qualitative indicators. The key resulting effects of transformation: improving the quality of BP by improving the informativeness of individual business functions and the efficiency of the use of high-tech experimental equipment; reducing the number of gaps in BP by reducing the number of business roles involved in their implementation; reducing the duration of BP by significantly reducing material and time costs and improving the productivity of individual business functions; transition to a service model "Laboratory As Service" for access to high-tech equipment while performing experimental laboratory studies based on digital educational environments.


Author(s):  
Samir Kumar Barua ◽  
Mahendra R. Gujarathi

This case provides an experiential learning opportunity to (a) appreciate the role of professional judgment in accounting policy choices, (b) evaluate the effect of accounting decisions on other business functions, and (c) understand the challenges in transitioning to a new accounting standard. Prestige’s previous auditors were fine with its use of output-based measure (milestones completed) to compute the percentage-of-completion (POC) for its long-term construction contracts. However, the newly appointed auditors recommended Prestige to switch over to input-based measure (costs incurred) to compute POC. Students need to choose the appropriate financial reporting policy considering accounting and non-accounting issues. The case addresses an important context, long-term construction contracts. Although the case setting is in India, it can be used in any country given its GAAP-agnostic nature. The case is best suited for intermediate accounting courses in which the topic of revenue recognition is addressed.


1996 ◽  
Vol 2 (1) ◽  
pp. 113-120
Author(s):  
Vlado Galičić

Business reengineering as a new stream in philosophy in managerial theory and practice, deserves appropriate attention. Such request sounds extremely natural when an hotel industry is concerned. Employing positive aims in business reengineering and controlling, as a way of modern management in a hotel business process, hotel management achieves valuable possibilities to gain better business results.


2011 ◽  
Vol 74 (4) ◽  
pp. 494-504 ◽  
Author(s):  
James Melton ◽  
Nancy Hicks

Based on a client project assigned to students in two undergraduate business classes, this article argues that social media learning is best done in a context that mixes social media with more traditional kinds of media. Ideally, this approach will involve teams of students who are working on different aspects of a larger client project. This integrated setup has several benefits: It enhances the students’ understanding of social media within a real context, it complements more traditional communication methods, and it reveals the communicative aspects of key business functions.


Author(s):  
J F Monk ◽  
L S Morgan

This paper reviews the development and implementation of a radically new manufacturing system for the production of advanced automobile headlamp reflectors using a thermosetting plastics material. The new system has replaced the traditional method which involved pressed and fabricated steel reflectors. This project has required wide ranging interaction of many business functions. They include sales and marketing, material process and production research and development, product design and development, and factory production engineering. Product design in particular has benefited from the improved optical performance of the new reflectors, providing beams of a higher photometric output and having a more closely defined pattern. This has been achieved whilst product quality, durability and competitiveness have been improved. In addition, the high aspect ratio headlamps made possible by the plastics reflectors have allowed lower vehicle bonnet designs, resulting in lower coefficients of drag and thus improved fuel economy.


Sign in / Sign up

Export Citation Format

Share Document