Softwares on Audit with New Audit techniques

There are many software for auditing of accounts and management. Which one do you think perfect for small business? There are so many arguments in this subject and let's have a look on this.

What the audit software does? 

Audit software automates the process of preparing and executing audits by helping organizations analyze data, assess risks, track issues, report results and manage paperwork

What are the Best 8 Audit Management Software In 2020?

1. MetricStream.
2. Intelex.
3. MasterControl.
4. Gensuite.
5. SmartSolve.
6. LogicManager.
7. Onspring.
8. IQS.

The TC suspends tax empty homes in Catalonia, the law of equality and local government

The Constitutional Court (TC) has been suspended, by admitting three laws passed by the Catalan Parliament appealed late last month by the Government. It is the law that taxes empty houses, the local government and the law of equality between men and women; and resources carry with the request of the interim suspension if they are admissible.

The orders released Tuesday, which were approved at the plenary session of the TC of the last week, agreed to transfer all actions to the Congress of Deputies and the Senate, and the Parliament and the Generalitat of Catalonia, which will have fifteen days to make themselves in the process and formulate the allegations they deem appropriate.

Admission involves the suspension of the validity and application of the three contested provisions as an automatic consequence of the invocation by the Government in its application of Article 161.2 of the Constitution.

That provision states that "The Government may appeal to the Constitutional Court the provisions and resolutions adopted by the bodies of the Autonomous Communities. The challenge about the suspension of the provision or contested decision, but the Court, if necessary, must either ratify or lift within a period not exceeding five months. "

Admission to the interim suspension pending and do not present a ruling on the merits of the appeal, which the Court resolved in judgment in coming days, according to court sources have indicated guarantees.

As explained last April 22 Justice Minister acting, Rafael Catala, at the press conference after the Council of Ministers, the impugnala government law establishing a tax on vacant apartments because the taxable event is already taxed in the current financing system of local government finances, which provides for penalties of up to 50 percent in the property Tax (IBI). A new tax on the same event, said, incurs "vice of unconstitutionality".

The other two laws affected, appealed because the central government estimates that invade their powers, are the Law 16/2015 related to the activity of local governments and the Law 17/2015 aimed at effective equality of men and women.

Catalá justified these resources in the "normal exercise of the powers of each government when it considers that another has acted beyond his powers". The Government, he said, has challenged 30 Catalan laws, as the Government has challenged almost fifty central government.

The law of effective equality fixed to different public policies aimed at promoting effective equality and empowerment, recognizing the role of associations defending the rights of women, states that in hiring and when allocating aid companies and organizations are prioritized having equality plans and determined that there should be parity in the collegiate bodies, courts and technical bodies administrations selection.

Also advocates a non-sexist education, the ban on toys and certain advertising and the promotion of reconciliation and the sharing of tasks.

In response to Finished Goods Report and others

Based on your latest mail I looked into the matter in detail and found that you are not describing of the actual scenario. Let me describe the actual scenario first.


1. Every Month I send the hard copy of Finished Goods Stock Monthly Report to Finance Department without delay.


2. As special support I would send to you Finished Goods stock soft copy when you informed to us. But this month I have not been informed about Finished Goods stock soft copy from your end.


3. Today morning you call to me, why I didn’t get the last month Finished Goods stock report? The report didn’t send to you regularly that’s why unfortunately slip it, I told you. I cut your phone call because without listening, you are doing unwanted shouting to me.


So I request you to kindly inform us proactively if you need any special support. If we can’t satisfy you professionally then your mail may be justified.


Please collect the Finished Goods Stock Monthly report from Reporting Department every month.

Existing budgeting exercise in the company for KPMG consultants

Can you please suggest your teams (Fiance , Costing, Cash Management, A/P, A/R/ whosoever involved in the existing budgeting exercise for the company) to consolidate the requirements related to budgets. These can be budgets related to all functions (purchasing, Sales, production) rolling up into your organization plan (Budgeted Revenues – Budgeted Costs = Budgeted Profit). 

 

Your teams can share with us the existing Budgeting process along with related templates that they use for budgeting.



This is a good suggestion. I have copied KPMG consultants into the email thread so that they are aware of your plan.


I will assign KPMG consultant to work with you on this subject.



Please see the suggestion from KPMG consultant. I will suggest that you can support another KPMG consultant on documenting the Budget related requirements in addition to routine execution of UATs.

Four assumptions of the expectancy model

The expectancy model states that people are motivated to work when they believe that they can achieve things they want from their jobs. 

 

A basic premise of the expectancy model is that employees are rational people. 

 

Four assumptions about the causes of behavior in organizations provide the basis for this model. 

 

First, a combination of forces in the individual and environment determines behavior. 

Second, individuals decide their own behaviors in organizations, even though constraints may be placed on individual behavior. 

Third, different individuals have different needs and goals.
  
Fourth, individuals decide among alternatives based on their perceptions of whether a specific behavior will lead to a desired outcome.

Associated Problems of Cyber Insurance

It is a effect like slightly other insurance plan, with the intention of is brought by businesses to care for themselves from risks involved with Internet and in rank knowledge. Such risks are not covered under money-making liability policies which is why, the need of such an insurance comes into picture. It provides cover pro losses due to hacking, denial of service attacks, destruction or loss of data, et cetera. Protective measures like anti-spam systems, virus protection, et cetera., fail by the side of round about face in epoch as they are not 100% foolproof. After a security breach, businesses need to restore their in rank systems, clean up infected archive, et cetera., due to which they fail to take up again their question pro quite round about epoch. All this calls pro a fortune of expenditure in time as soon as they are not making money. At such instances, this coverage chains them to take tending of their economic needs.

This insurance effect provides coverage pro liabilities with the intention of might occur due to netting content and media, exclusive and secure customer in rank, warning alongside CPU systems and website, question interruption, and recovery of in rank knowledge infrastructure. Any loss or economic expenditure occurring due to these actions is covered under the plan and demand can be made to brand up the losses.

First and the a large amount main benefit of cyber insurance is with the intention of in job of a security breach, it acts as a funding resource to cover up the losses and bring back businesses to common working, lacking raising the need of government assistance. Secondly, it evenly distributes the risks between companies by charging astronomical premiums from the ones having senior menace of such instances, while charging minus from businesses with little menace. Lastly, it indirectly encourages businesses to adopt first-class security measures like tracking website visitors, etc., since companies with poor security systems need to shell out senior premiums.

Associated Problems of Cyber Insurance

Despite the repayment, here are round about problems associated with this kind of insurance. One is with the intention of, insurance companies look after not arrange sufficient actuarial data as this effect is recently residential by the insurance industry. Because of this, insurers fail to estimate the amount of premium with the intention of obligation be charged so with the intention of in job of an event, the insurer has an adequate amount finance pro demand settlement. Secondly, insurers worry about "cyber-hurricanes". This is a label used pro situations as soon as unwarranted digit of claims occur due to a security breach. Such situations are stubborn to control by the insurer and may well drain them publicized completely.

Like other insurance products, the premium charged depends on the coverage amount and the risks involved. Typically, pro $1 million coverage, the premium charged is $3,500 with a deductible of $5,000. This amount is not fixed and may well vary depending on the insurer and the epoch of issuance of the plan. The amount of premium charged is senior pro question with relatively poor security measures as compared to the ones who are better equipped.

No theme how stringent a company's security measures are, it continuously has round about kind of warning. To save themselves from economic crunch all through such untoward situations, many companies are at the moment opting pro cyber insurance. It is firm with the intention of this effect is a costly concern in our time, but it will progressively befit simpler and cheaper as more and moby the side of insurance companies will start offering this effect in the promote.

The main issues in corporate governance

Corporate governance has attracted a large amount of attention in recent years, although measures to promote good corporate governance vary substantially between different countries. The initial demand for better corporate governance occurred as a result of several ‘corporate scandals’, with major companies either collapsing or coming close to collapse.

 

There are several key issues in corporate governance, although their perceived importance varies between different countries:
(1) There should be an effective board of directors. The directors should be independent-minded and should collectively have a wide range of skills, knowledge and experience. The board of directors should not be under the control or influence of an ‘all-powerful’ chairman and/or chief executive officer, who is able to dictate the board’s decisions.
(2) The board of directors should have clearly-defined responsibilities that it must not delegate, and it should carry out these responsibilities properly.
(3) The directors should govern the company in the best interests of its shareholders (and possibly also other stakeholders); they should not run the company in their own self-interest.
(4) The financial statements of the company should be reliable. (In many cases of corporate collapse, the financial statements were proved to have been misleading and unreliable.)
(5) Risks should be controlled, and the directors should provide assurance to the shareholders about the systems of controls and risk management.
(6) The remuneration of directors should be fair. Directors should not fix their own remuneration, and their remuneration package should provide them with incentives to achieve the objectives of the company that are in the best interests of the shareholders. Directors should not be rewarded for failure.
(7) There should be active, open and constructive dialogue between the company’s directors and its shareholders, in particular its major shareholders. As far as audit and assurance are concerned, the main relevant aspects of corporate governance are items (4) and (5) above.

5 General principles of Corporate Governance

The five principles set out below were developed by the Organisation for Economic Co-operation and Development (OECD). They are intended to provide a general model of a good corporate governance system to achieve the following objectives.


(1) Protect shareholders’ rights, such as voting rights and the right to transfer ownership in shares.

(2) Ensure the equitable treatment of all shareholders, including minority and foreign shareholders. All shareholders should have the opportunity to obtain effective remedy for any violation of their rights.

(3) Recognize the rights of stakeholders as established by law and encourage active co-operation between corporations and stakeholders in creating assets, jobs, and the sustainability of financially secure enterprises.

(4) Ensure that timely and truthful disclosure is made on all material matters concerning the corporation, including the financial position, performance, ownership, and governance of the company.

(5) Ensure the strategic direction of the company, the effective monitoring of management by the board, and the board’s accountability to the company and the shareholders.

The role of the external auditor in corporate governance

The external auditor is part of the corporate governance system.

 He provides an independent check on the integrity of the financial information prepared by the directors for the use of shareholders and other stakeholders.  He may have a accountability for forming an opinion on the extent to which the directors have complied with specific corporate governance regulations.

In order to fulfill these roles, the external auditor will examine the company’s systems and controls. However, he is not responsible for those systems or controls. Responsibility remains with the directors and executive management.

The external auditor is moreover required by ISA 260 Communication of audit matters to those charged with governance to give management periodically with observations arising from the audit that are important and relevant to management’s responsibility to keep an eye on the financial reporting process.

These observations might comprise:

·         weaknesses in internal control found by the auditor, or

·         accounting policies adopted by the enterprise which the auditor considers improper.

In addition, all high-quality corporate governance systems have procedures and arrangements designed to preserve the independence of the external auditor. For example:

·         the external auditor may be required to report to an audit committee, as well as to work with the CEO and finance director

·         the nature and extent of non-audit services provided by the audit firm may be kept under review, to make sure that the auditor:

− has not become excessively dependent on the company and its executive management for fee income, and

− is not in risk of becoming too familiar with the company’s management and systems of operation

·         suitable procedures may be established for the discussion of arguable issues where the auditors and the finance director or the CEO have strong differences of opinion.

Auditors responsibility for reporting on corporate governance

The followings are auditors responsibility for reporting on corporate governance:

• Listed companies following the Combined Code in the UK, or other applicable guidance in respect of corporate governance, must include a corporate governance statement in the annual report.

• The auditors are not required to ‘audit’ this statement but must review it for inconsistencies with other information contained within the annual report.

• If inconsistencies are found, there may be an impact on the audit report in two ways:
– if the inconsistency highlights an error in the financial statements and the directors refuse to amend the error, the auditor will issue a qualified report
– if the inconsistency highlights an error or misleading information in the corporate governance statement, the auditor will add an emphasis of matter paragraph to their report. This is not a qualification. It is included to bring the reader’s attention to the matter.

• In the US, the requirements are more stringent. Sarbanes Oxley states that the auditors must attest as to whether the company has complied with corporate governance requirements. Therefore, they must give an
opinion as to the effectiveness of the company’s internal control system amongst other things.

What is corporate governance?

Corporate governance is the means by which a company is operated and controlled.
It concerns such matters as:

Corporate governance is about ensuring that companies are run well in the interests of their shareholders and the wider community.
• the responsibilities of directors
• the appropriate composition of the board of directors
• the necessity for good internal control the necessity for an audit committee
• relationships with the external auditors.
• The need to improve corporate governance came to prominence in the UK in the 1980s, following the high profile collapses of a number of large companies.
• Poor standards of corporate governance had led to insufficient controls being in place to prevent wrongdoing in the US in the 1990s, as demonstrated by the collapses at Enron and WorldCom.

• The authorities internationally have now been working for a number of years to tighten up standards of corporate governance. 

• Good corporate governance is particularly important for publicly traded companies because large amounts of money are invested in them, either by ‘small’ shareholders, or from pension schemes and other financial institutions.

• The well publicised scandals mentioned above are examples of abuse of the trust placed in the management of publicly traded companies by investors. This abuse of trust usually takes one of two forms (although both can happen at the same time in the same company):

– the direct extraction from the company of excessive benefits by management, e.g. large salaries, pension entitlements, share options, use of company assets (jets, apartments etc)
– manipulation of the share price by misrepresenting the company’s profitability, usually so that shares in the company can be sold or options ‘cashed in’.