Auditing beyond numbers

-Assessing the Human resource management strengths

-By CA Lekha Krishnakumar

l e k h a @ l e k r i s h . c o m

Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com

New Idea

“If you have an idea and I have an idea and we exchange these ideas, then each of us will have two ideas.”

-George Bernard Shaw

Before we start let us try to answer a few questions What is the role we envisage for a

traditional auditor? If you are in the industry as a Finance

Controller, how would you perform qualitative analysis?

What could be a finance professionals role towards Human Resources function in an organization?

Do you think it is important to appraise qualitative aspect of resources including human resources?

The understanding that we carry today are paradigms accumulated over the years due to experiences.

What do you see in this picture?

Paradigms

It has been observed that :

All of us have paradigms that resist us to appreciate and acknowledge a different perspective.

Paradigms might take a rigid form with progression of age.

Some paradigms are due to the socio-economic factors and others are self created.

Change is inevitable

Traditional Number cruncher to a Consultant

Validations to Interpretations7

What is the purpose we wish to accomplish from this presentation?To appraise internal auditors and management teams, regarding problems generally overlooked by organizations due to departmentalization and inflexible job descriptions.

To provide insights where a third party independent auditor could add value in building a successful enterprise.

To bring out the dynamics of management amongst the five critical aspects of human resource capital viz., Knowledge, Skill, Competence, Incentives and Belongingness.

Quantity or Quality?

16KB Floppy

1GB Pen-drive

Pentium I PC

Pentium Dual Core

Mechanical

Executers

Executive Thinkers

FewMany

Attrition – Lost man months

Job searching

Notice Period

Finding Replacement

Training new recruit

Activities when an employee quits

Man-Months Lost

Satisfy all Stakeholders

Auditor

Shareholders

Management

CreditorsCustom

Employees

Regulatory Authorities

Public at Large

Team Building

Qualities of good team..

Effective solutions are provided by talented, skillful and proactive people who can strike the right balance among key business values viz.,

InnovationPromptnessQualityEffectivenessGoodwill RelationshipSatisfaction

How do we build a good team?

A Good team

Hiring Right People

Nurturing Leadership Qualities

Structuring The

Organization Properly

Competence Mapping And

Capacity Building

Adopting Good

Evaluation And Incentive

Systems

Creating A Sense Of

Belongingness

A Good team

Hiring Right

People

Nurturing

Leadership

Qualities

Structuring The

Organization

Properly

Competence

Mapping And

Capacity Building

Adopting Good

Evaluation And Incentiv

e Systems

Creating A Sense

Of Belongin

Hiring Right

People

Hiring good people

Job DescriptionSkill

Requirement analysis

Costing

Timeline Profile match

Candidate analysis

Candidate Analysis

Knowledge

Competence

Cost Attitude

Adaptability

Values

Talking about attitude..

Let me share a small presentation received from my friend.

The following 8 slides are from the other presentation on attitude.

A SMALL TRUTH TO MAKE LIFE

Hard Work

H+A+R+D+W+O+R+K

8+1+18+4+23+15+18+11 = 98%

Knowledge

K+N+O+W+L+E+D+G+E

11+14+15+23+12+5+4+7+5 = 96%

L+O+V+E

12+15+22+5 = 54%

L+U+C+K

12+21+3+11 = 47%

( don't most of us think this is the most important ??? )

Then what makes 100% ?

Is it Money ? ... NO ! ! !

M+O+N+E+Y

13+15+14+5+25 = 72%

Leadership ? ... NO ! ! !

L+E+A+D+E+R+S+H+I+P

12+5+1+4+5+18+19+9+16 = 89%

Every problem has a solution, only if we perhaps change our

attitude.

To go to the top,

to that 100%,

what we really need to go further... a bit more...

ATTITUDE

A+T+T+I+T+U+D+E 1+20+20+9+20+21+4+5 =

It is OUR ATTITUDE towards Life and Work that makes OUR Life

100% ! ! !

Change Your Attitude …

And You Change Your Life ! ! !

A Good team

Hiring Right

People

Nurturing

Leadership

Qualities

Structuring The

Organization

Properly

Competence

Mapping And

Capacity Building

Adopting Good

e Systems

Creating A Sense

Of Belongin

Nurturing

Leadership

Qualities

Nurturing Leadership..

Lead by example..

Don’t just manage..

28Auditing Beyond Numbers -By CA Lekha Krishnakumar www.lekrish.com

Manager or Leader?

MANAGER

What & Who?What happened &

Who did it?Plays Blame Game.Penalizes the doer.

LEADER

Why & How?Why something

happened and How it can be corrected?

Concentrates on the fundamental cause.

Offers solutions to problems.

A Good team

Hiring Right

People

Nurturing

Leadership

Qualities

Structuring The

Organization

Properly

Competence

Mapping And

Capacity Building

Adopting Good

e Systems

Creating A Sense

Of Belongin

Structuring The

Organization

Properly

Preparing an Organizational Chart

Board of Directors

CEO/MD

General manager-Support services

General manager- Marketing (South)

General manager- Marketing (West)

Chief manager Finance

Chief manager -HR

Chief manager-Logistics

Manager- Technical team

Manager- Business Development team

Manager- Commercial

Manager- Technical team

Manager- Business Development team

Clearly define roles and responsibilities of each employee

Chief Manager Finance

Accounts Planning/Budgetary Control

Treasury/ Statutory Compliance

Contract management

General Ledger

Accounts Receivable

Accounts Payable

Receipt and payment through cash/bank

Bank Reconciliation

Finalization of financial statements

Managing internal & external audit

Preparation of Annual Budgets

Comparative analysis of budgets vs actual

Product pricing methodology

Preparation of monthly MIS

Cash and funds flow management

Compliance with direct and indirect tax and assessments

Relationship with banks

Debt Collection

Dealer Contract management

Supplier Contract management

Invoicing

Status of outstanding commitments

Systematic maintenance of documents

Establishing Clear performance parameters

Communicating objective decisions and critical feedback

Establishing effective communication channels and whistle blower policy

A Good team

Hiring Right

People

Nurturing

Leadership

Qualities

Structuring The

Organization

Properly

Competence

Mapping And

Capacity Building

Adopting Good

e Systems

Creating A Sense

Of Belongin

Competence

Mapping And

Capacity Building

Right Person for the right job..

Creative brain used for mess cleaning??!!??

Field worker

used for Desk

Job??!!??

Capacity Building

A Good team

Hiring Right

People

Nurturing

Leadership

Qualities

Structuring The

Organization

Properly

Competence

Mapping And

Capacity Building

Adopting Good

e Systems

Creating A Sense

Of Belongin

Adopting Good

Evaluation And

Incentive Systems

Periodic performance evaluation

Staff Dialogues

Peer reviews

Management

feedback

Goal setting

and establishi

ng Key Result Areas

Measurement of actual

performance with respect to KRAs

Objective rating

systems

Good HR policies

for incremen

ts, promotions and merit

rewards

A Good team

Hiring Right

People

Nurturing

Leadership

Qualities

Structuring The

Organization

Properly

Competence

Mapping And

Capacity Building

Adopting Good

e Systems

Creating A Sense

Of Belongin

Creating A Sense Of

Belongingness

Belongingness wields Power

Good Organizational Culture

Show flexibility to amend mistakes as opposed to

defending them.

Evolve a policy of giving credit when

voluntary disclosures of

lessons learnt from mistakes are

communicated.

Develop a feeling of pride within the individual to be a part of the team.

To summarize..excerpts from Management E-Learning program

Please watch the e-learning program..

How can a Finance Professional help build Human Resources team?

Understand Human Resources aspect of Management.

Evaluate constantly the health of an Organization.

45Auditing Beyond Numbers -By CA Lekha Krishnakumar

www.lekrish.com

What can a finance professional do?

Analyze the symptoms. We are originators and presenters of financial information. And, symptoms are revealed from figures.

Diagnose the right cause of problems – this may involve a paradigm shift.

Give corrective recommendations at the right time. Bring business on track.

Let us keep our minds open for various possibilities..

Let us help in building Healthy Organizations!

Thank You!

Auditing beyond numbers

Documents

Transcript of Auditing beyond numbers

Credit Scoring Beyond the Numbers

“Seeing Beyond the Numbers…” FRIENDS OF THE FIRM An opportunity from the accounting firm who is truly Seeing Beyond the Numbers…

Lab values beyond the numbers

See Beyond the Numbers: Data Visualization in SharePoint

Success in Social: Beyond the Numbers

Board Reporting: Efficiency, Automation & Getting Beyond the Numbers

Beyond The Numbers€¦ · Beyond The Numbers Baron Schwartz. Who Am I? ... It's good to go beyond the surface. Amdahl's Law

Beyond Numbers - Buzzacott & Co · Beyond the Numbers Grant making An industry transformed beyond recognition selecting the best grants The biggest changes affecting FCA regulated

Credit Scoring Beyond the Numbers MASFAA Conference 2006.

Beyond Numbers: Women’s Political Leadership in Delivering ... · Women’s Empowerment and Development towards Agenda 2063.’ Themed “Beyond numbers: Women’s political leadership

Our True Story - Update Training, Auditing and Beyond

Operational Auditing and Auditing Standards · The term "operational auditing" is one of the terms used to identify a kind of auditing that goes beyond examina- tion of accounting

Beyond GDP, Beyond Numbers

26012 Managing & Auditing Security During Implementation And Beyond 03172009

Beyond the numbers - Heidrick & Struggles/media/Publications and Reports/Beyond the... · Beyond the numbers: A ... Whether it be through broadening and deepening the ... strategy

e-Government Controls in Service-Oriented Auditing ...pdfs.semanticscholar.org/c404/b748c0dcd6627e25788f9d8e7f...e-Government Controls in Service-Oriented Auditing Perspective: Beyond

Beyond Numbers - Owens Community College · community and beyond. On behalf of the College, I am honored to present our 2005 Annual Report, Beyond Numbers. Our growth and success

Beyond Numbers - alasoplascpas.comBeyond Numbers Volume 5, Issue 27 Beyond Numbers is a periodic e-newsletter of Alas Oplas & Co., CPAs which underscores its people, services, events,

Looking beyond numbers and figures Department of Agriculture.

Beyond the Numbers Issue 2