Management Report

Management Report

Management Report

Purpose of the Study

The main purpose of the study is to make a report to the managing director to analyse the management problems and provide the solutions as how the company could improve its management control process.

Problem

Following are some problems identified in the company:

1) Better quality is not supplied to the customers.

2) Sufficient time is not given on overtime payments

3) Trends in the sales are not been monitored.

Use of model management control to explain how the firm's directors could ensure that an adequate system of control exists

It is usually acknowledged inside the financial business industry that a key constituent for the thriving management of risk is a powerful and productive risk management and controls structure inside each securities firm (Aghili 2009 38). The next components of a sound and productive scheme of risk management and controls are proposed benchmarks that companies and supervisors in each jurisdiction can use to check the adequacy of the control natural environment for securities enterprise activities:

 

The Control Environment

1. Firms require to set up a means to double-check that they have interior accounting controls and risk management controls. Supervisors require to set up a means to double-check that the entities they regulate have interior accounting controls and risk management controls. The supervisory means require not prescribe exact and comprehensive controls, but rather supply general guidance to firms.

2. Firms and supervisors require working out that controls are set and supervised at the older management grade at a firm; blame for supervising controls is apparently defined; and older management encourages a heritage of controls at all grades inside a firm (Banerjee 2005 602).

To be productive, risk management and controls should cover certain rudimentary elements. The rudimentary control components which should be disseminated as firm guidance by management and guidance from supervisors should cover both interior accounting controls, which encompass rudimentary publications and notes obligations, and risk management and controls. Basic interior accounting controls for companies should encompass publications and notes obligations which have controls that are conceived to safeguard assets of the entity and to safeguard clientele property. This desires to be carried out in a natural environment where obligations are segregated (i.e., front agency and back agency responsibilities should be separated) (Bachofer 2004 53). Segregation of obligations is essential to decrease the possibilities to permit one individual to be in a place to both conceive and hide mistakes in the usual course of business. It is thus significant to accredit distinct persons the responsibilities of authorizing transactions, notes transactions, and sustaining custody of assets. For demonstration, this may need the unaligned verification of charge securities places and other information.

 

Recommendations to Improve Management Control

Firms should be arranged to supply supervisors with applicable data about the use of controls in each firm and about control flops under usual and in crisis situations. Supervisors should have means to share data about controls with each other throughout these situations. Supervisors' data desires pertaining to controls will often be harshly concentrated and possibly very comprehensive in any crisis ...