...STRATEGIC MANAGEMENT AND OPERATIONAL GUIDELINES A User Guide for Public Sector Auditors in the Pacific Developed by PASAI in 2012 Pacific Association of Supreme Audit Institutions (PASAI): Strategic Management and Operational Guidelines Pacific Association of Supreme Audit Institutions (PASAI) 2 Pacific Association of Supreme Audit Institutions (PASAI): Strategic Management and Operational Guidelines Foreword The purpose of these guidelines is to provide assistance for Pacific Association of Supreme Audit Institutions (PASAI) members, especially heads of SAIs and managers to carry out their functions strategically, tactically and operationally. They do this by introducing the basics of planning, examining the types of objectives and differentiating the types of plans consisting of the corporate plan, strategic plan, business plan and operational plan for the management of their offices. PASAI recognises the importance of having these strategic management plans as it is top level management’s responsibility to define the SAI’s positions, formulate strategies and guide long term organisational activities. This is one of PASAI’s initiatives aimed at developing SAIs within the region. The guidelines have been produced to assist PASAI members in the effective, efficient and economic planning and management of their resources annually and in the long term. It provides guidance to SAIs in establishing and enhancing their strategic management functions. The guidelines...
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...INTRODUCTION A strategic management audit is a technique of measuring the organization's performance. It helps to evaluate the performance of management team. An audit of management performance with regard to external strategies helps to identify problem areas and correct strategic approaches that are not effective. An assessment of the external environment shows where change has happened and where strategic management no longer matches the demands of the marketplace. Thus the organization can improve business performance by periodically conducting such an audit (http://smallbusiness.chron.com/conduct-external-strategic-management-audit-67898.html) External strategic management audits provide management with both insight and preparation for the changing marketplace, it helps finding hidden opportunities and reducing the impact of future threats in a rapidly changing business environment through identifying and evaluating trends and events that are beyond the control of an organization, such as increased foreign competition, population shifts, an aging society, information technology, and the computer revolution. An external strategic management audit reveals key opportunities and threats (the OT portion of the SWOT Analysis) confronting an organization, so managers can formulate strategies to take advantage of the opportunities and avoid or reduce the impact of threats (www.freeessays123.com/.../externalstrategic.html). 2. CONDUCT AN EXTERNAL STRATEGIC MANAGEMENT AUDIT Management...
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...fluid nature of an enterprise’s business environment, both internal and external, require insight into the environment, the business’ position within it and it’s interactions with it. This is where strategic auditing becomes a powerful tool that can tell those driving the business what their capabilities are and how they fit in to the current market, while making strategic recommendations to help improve the company’s standing within that market. (As a side note, it is now clear to me that the entire course was basically a layout for the steps to be taken during a strategic audit.) Procuring all of the necessary information is the first step towards delivering a good strategic audit. A discerning audit identifies all of the resources available to a business, both human and in capital. Assigning proper value to each of these resources is a crucial step in formulating a plan. Looking at a company’s value chain through a Value Chain Analysis, one can discern the activities that take place in a business and break them down into both primary and secondary activities. These can then be turned into an analysis what activities can be outsourced and of the competitive strength of the business. Identifying core competencies followed by performance analyses help define the overall strategic performance of the company. Looking at how the business sees itself in relation to the marketplace is the next step. This involves assessing the current business strategy. A SWOT...
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...Global Technology Audit Guide Auditing IT Governance Global Technology Audit Guide (GTAG®) 17 Auditing IT Governance July 2012 GTAG — Table of Contents Executive Summary......................................................................................................................................... 1 1. Introduction................................................................................................................................................ 2 2. IT Governance Risks................................................................................................................................... 7 3. Aligning the Organization and IT — Key Considerations................................................................ 12 4. The Role of Internal Audit in IT Governance............................................................................ 15 Conclusion....................................................................................................................................................... 18 Authors and Reviewers.............................................................................................................................. 18 Appendix — IT Governance Risk Assessment/Engagement Planning Considerations............................................. 19 iv GTAG — Executive Summary Executive Summary To support the heightened importance of IT governance and the mandatory nature of the International Standards for the Professional...
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...Global Technology Audit Guide Auditing IT Governance Global Technology Audit Guide (GTAG®) 17 Auditing IT Governance July 2012 GTAG — Table of Contents Executive Summary......................................................................................................................................... 1 1. Introduction................................................................................................................................................ 2 2. IT Governance Risks................................................................................................................................... 7 3. Aligning the Organization and IT — Key Considerations................................................................ 12 4. The Role of Internal Audit in IT Governance............................................................................ 15 Conclusion....................................................................................................................................................... 18 Authors and Reviewers.............................................................................................................................. 18 Appendix — IT Governance Risk Assessment/Engagement Planning Considerations............................................. 19 iv GTAG — Executive Summary Executive Summary To support the heightened importance of IT governance and the mandatory nature of the International Standards...
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...Risk-Based Auditing, Strategic Prompts, and Auditor Sensitivity to the Strategic Risk of Fraud ACC650M Auditing Principles January 30th, 2015 a. What is the issue being addressed in the paper? This paper are focus on the risk-based auditing. As the paper mentioned that Risk-based auditing is a way to guide auditor to devote more audit resources to account that may take more misstated. On the contrary, fewer resources to those are focused on the less misstated. Kendall Bowlin expect to guide effective and efficient audits. In the other words, the inaccurate assess misstatement risk may result in misallocated of audit resources and undetected misstatement. In additional, Kendall Bowlin seemingly consider that the low risk accounts may also caused high risk of fraud, because of managers and auditors (business operating and audit strategy) allocated audit resources to high risk accounts. That means if the audit resource concentrate on high risk accounts, it may create opportunities for intention people to manipulation low risk accounts. The study’s purpose is to demonstrate the potential threat with risk-based auditing that lead auditors allocate resources among accounting with different of non-strategic risk and account specific misstatement risk, and use prompting strategic for auditors to reduces this threat. There are two important ways of prompting auditors in the paper. The first one is auditors allocate limited pools of resources among client accounts that...
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...Overview of Strategic Management A Comprehensive Strategic-Management Model Strategy Evaluation Strategy Evaluation Strategy Implementation Strategy Implementation Strategy Formulation Strategy Formulation Measure and Evaluate Performance Measure and Evaluate Performance Implement Strategies – Marketing, Finance, Accounting, R&D and MIS Issues Implement Strategies – Marketing, Finance, Accounting, R&D and MIS Issues Generate, Evaluate, and Select Strategies Generate, Evaluate, and Select Strategies Implement Strategies – Management Issues Implement Strategies – Management Issues Establish Long-Term Objectives Establish Long-Term Objectives Perform Internal Audit Perform Internal Audit Perform External Audit Perform External Audit Develop Vision and Mission Statements Develop Vision and Mission Statements Strategic Management can be defined as the art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives. Develop Vision and Mission Statements A vision statement should answer the basic question, “What do we want to become?”. A clear vision statement provides the foundation for developing a comprehensive mission statement. An enduring statement of purpose that distinguishes one organization from other similar enterprises, the mission statement is a declaration of an organization’s “reason for being”. It answers the pivotal question “What is our business...
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...Everest University Risk management planning is the process of developing options and actions to enhance opportunities and reduce threats to project objectives. Risk management implementation is the process of executing risk management actions. Effective crisis response begins with effective decision-making. Good initial decisions can make even a catastrophe manageable; bad decisions can fatally exacerbate an otherwise small problem. In both cases, the window of opportunity for initial decision making is extremely small and closes rapidly. Once the moment for decision making has gone, it does not come back. Proper crisis response is about developing a range of emergency management options that can be exercised and that focus on what could happen, not what will happen. This is achieved through practice, and lots of it. It is no easy task getting a crisis management team together for the first time during an unfolding emergency. In all cases, the best crisis management results are delivered on-site and in the same time zone. However centralized a company may be, when it comes to crisis management, even local staffs need to sharpen their crisis management skills because ultimately, those are the ones that will be used when disaster first strikes. When actually organizing a live run-through of the crisis management plan, the scenario should ideally be one in which a business system is disabled. It is better to act this out in a real location. Using facilities already not in use,...
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...APPENDIX 6C Strategic Systems Auditing (SSA) Approach to Understanding Business Risk INTRODUCTION This section expands on the business analysis techniques explained in the chapter. The 1990s saw a trend toward developing new audit approaches that apply a technical knowledge of the theory of organizational strategy to evaluating a client’s competitive position and its effect on the client’s business risk. These developments have been referred to as the strategic systems auditing (SSA audits) approach to auditing. An SSA audit can be characterized as a top-down approach that starts with understanding the corporate strategy and the business as a whole to determine the effects on the financial statements. A key innovation in the SSA audit was that the auditor must try to understand the business as management runs it, but with an objective point of view. In contrast, the traditional financial statement audit tended to focus on a bottom-up approach, or gathering evidence on individual transactions and aggregating them to the financial statement level. The strategic systems approach is an application of systems thinking, as discussed in the chapter. The audit team obtains an understanding of management’s strategy by interviewing the senior managers and the managers of the various business units in the organization. The auditors learn about the business objectives (e.g., cost leadership, differentiation, market share) and strategies that management has in place to meet those objectives...
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...Technologies and Skill Set According to the career information experts, a business strategist uses desktop computers, analytical or scientific software and project management software when performing duties. She or he also must have good communication skills and effective decision-making aptitude. Introduction: Professional development plan is not a new concept, but it is becoming increasingly important. The continuing pace of change in materials science and engineering means that what we learned in our initial training courses soon becomes dated and irrelevant. It has been estimated that the half-life of technical knowledge is about seven years. Furthermore, the amount of knowledge - and the amount of information - continues to increase. Materials science and engineering has become knowledge intensive: we have entered the knowledge-based economy. In this new world, it is impossible for us to know all that there is to know, yet access to the knowledge base is increasingly readily available. So what will make us good materials technologists, rather than poor ones, is that our knowledge is more relevant, and more current, and is applied more...
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...A Communication Audit August 15, 2012 A Communication Audit Organizational communication as an academic discipline embraces the study of symbols, messages, media, interactions, relationships, networks, persuasive campaigns, and broader discourses within an organization (Cheney 2004). However, organizational communication could also be used as a general term to cover public relations, public affairs, investor relations, labor market communication, corporate advertising, environmental communication and internal communication (Van Riel 1995).The issue of communication and its integration in all aspects of the organization, as well as its contribution to the achievement of organizational strategy, has become a major focus point in many discussions as indicated by some examples of the proponents of integrated communication such as Gayeski and Woodward (1996), Jones (1999), Wightman (1999), Duncan and Moriarty’s (1998), Reukert and Walker (1987), Moenaert, Souder, DeMeyer and Deschoolmeester (1994), Clark and Fujimoto (1991) and Sriram, Krapfel and Spekman (1992). According to Leahy (2003a:3) management expects to measure effects which simply means that management expects result in all aspects of the organization including communication. However the issue of contribution and more specifically the precise value of what communication contributes, or the impact it has on the success of an organization, are seldom clear and the effect of communication is often times not tangible...
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...Article Review: McDonald and Leppard (1993) The Marketing Audit The Marketing Audit Model Any marketing plan will only be as good as the information on which it is based, and the marketing audit is the means by which information for planning is organised. A marketing audit is a systematic, critical and unbiased review and appraisal of all the external and internal factors that have affected an organisation’s commercial performance over a defined period. By providing an understanding of how the organisation relates to the environment in which it operates, the marketing audit enables management to select a position within that environment based on known factors. Any organisation carrying out an audit will be faced with two kinds of variable: those over which if has no direct control and those over which it has complete control. The former include economic and market factors, while the latter usually concern the organisation’s resources, or operational variables. This suggests that the marketing audit should be structured in two parts: * External audit—the uncontrollable variables (business and economic environment, the market, the competition). * Internal audit—the controllable variables (organisation’s strengths and weaknesses, operations and resources in relation to the environment and competitors). Chapters 1—6 McDonald and Leppard’s The Marketing Audit Model is a comprehensive set of exercises that a company can go through to develop insight into all aspects...
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...Assignment 1 – Practical Strategic Planning and Formulation Processes Scenario Learners are required to select a large or medium-size firm in Vietnam (a local or a foreign company); or either learners may choose their own company (if any). Each learner is assigned to conduct a practical study on the chosen company, and to compare what he/she has learned in classes with the real business activities. The learner has therefore been set two tasks to complete that will enhance his/her knowledge of: * The practical processes of strategic planning of his/her chosen company * The applicable strategic formulation of the business Each learner is asked to prepare an individual report on the below-mentioned topics. The learner should complete the report for discussion with the selected firm’s senior management which identifies and evaluates a number of key areas and discusses them in a comprehensive way. The learner’s ideas must be supported by evidence of research and readings related to the key themes of the topics. Task 1 * Provide and explain strategic contexts and terminology– missions, visions, objectives, goals, and core competencies of the chosen company. * Review the issues involved in strategic planning * Explain different planning techniques (This task provides evidence for outcome #1 – Assessment criteria 1.1, 1.2, 1.3) Task 2 * Produce an organizational audit for a given company * Carry out an environmental audit for a given company ...
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...Guidelines for the Strategic Audit Report Revised Sep 2013 Adapted and revised from: Wheelen and Hunger, (2008). Concepts in Strategic Management and Business Policy, 11th Ed., Pearson Education, Inc. Purpose of the strategic audit assignment Your assignment Selecting a company for the strategic audit An effective report Required format for the strategic audit report Required sections of the strategic audit report Executive Summary Current situation Corporate governance External environment: Opportunities and threats Internal environment: Strengths and weaknesses Analysis of strategic factors (SFAS) Strategic alternatives and recommended strategy (TOWS) Implementation of recommended strategy Conclusions Evaluating mission statements Evaluating the Board of Directors Preparing the tables: EFAS, IFAS, SFAS, and TOWS Common-size statements Analyzing financial statements Analyzing financial ratios Writing guidelines Relaxed APA rules Useful resources Purpose of the strategic audit assignment A strategic audit is usually done to help the firm’s management decide how to proceed, or to support a potential investment or loan. The purpose of a strategic audit is essentially to answer the question, “What condition is this firm in?” Because the audit is focused toward answering this question, there must be a conclusion about what the audit shows. Therefore, while this is mostly an objective, informative report, there is a persuasive twist at the end. 1 The point of this assignment...
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