Internal Auditing, 4 questions Essay Example | Topics and Well Written Essays - 2000 words

Internal Auditing, 4 questions - Essay ExampleThe complex activities argon to be controlled by managements of the organizations, and in the case of companies, naturally the jump target is the get on with of Directors of such organization made responsible to formulate proper policies, to control the various activities, the organization carries our in contrary countries, with cross cultures , different moral values, and different customer loyalties. One can see Nescafe, Cadbury product, Lux , Colgate ,cocoa cola, Pepsi, Philips, Sony, Motorola, Toyota and a host of consumer products available through out the world, where customers vary, their cultures vary, but they are fix by these products, which speaks of their qualityThese products made their own language..For making such universal names, just like the saying that behind every successful man there is a successful woman, behind every successful organization, definitely there is a sound, solid, successful management structure wit h reliable management principles and policies, to operate their businesses across globe. These managements are successful, because of their management policies, which involve various control systems. ways strength lies in the policies, they frame, and implementation of those policies, by establishing, various controls, at different levels of management.The first in the management hierarchy, na... establishment structure --Controlenvironment basically includes the organization structure it self. Managements processes involve planning, organising, and directing the business activities, with the assistance of sound management structure.Different levels of management means-- Management by Board and its subcommittees, top management teams, middle and or functional management teams, operating or supervisory management teams.Boardand StrategicTop ManagementMiddle or Functional Management direct or Supervisory Management.The first in the management hierarchy, namely the board and top stra tegic management , formulate (i) the vision, (ii) mission, (iii) objectives of the organization,(iv) long term strategic plans ( ranging from 2 to 5 years period)and approve the plans and strategies prepared by other management structures. Functional management prepares strategiesandshort term plans ranging for six months to a two -year period. Operating management prepares operating plans and operating strategies that will range from one week to six months period. All these plans and strategies should be falling with in the top management plans and strategies. erstwhile they are implemented in true spirit, the organization gives excellent results in all directions. But it is not so simple in the present twenty-four hours organisations.Organisation should have proper control systems in place, and internal audit activity exists to give reasonable assurance to the management that the control environment exists, andcontrol systems naturalized by the management are efficient, effecti ve and economical. Assignment of Authority and responsibility-- Managements function throughby fixing responsibilities on the individual mangers, and