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Management Audit

Asep Effendi R
Fakultas Ekonomi
Universitas Sangga Buana YPKP
Partial Organization Chart,
Manufacturing Company
President
Line Function Staff Function

Production Financial
Vice-President Vice-President

Production Supervisor
Controlle Treasure
r r

Machining Assembly Controller’s Treasurer's


Foreman Foreman Functions Functions
Management Accounting
Information Systems
Collecting Special Reports
Measuring Product Costs
Storing Customer Costs
Analyzing Budgets
Economic Reporting Performance Reports
Events Managing Personal Communication

Inputs Processes Outputs

Users
The Management Process
• The Management Process is defined
by the following activities:

– Planning
– Controlling
– Decision making
The Management Process
(continued)

•Planning requires setting


objectives and identifying
methods to achieve those
objectives.
The Management Process
(continued)
•Controlling is the managerial activity of
monitoring a plan’s implementation and
taking corrective action as needed.

•Control is usually achieved with the use of


feedback, which is information that can be
used to evaluate or correct the steps being
taken to implement a plan.
The Management Process
(continued)

•Decision making is the


process of choosing
among competing
alternatives.
Comparison of Management
and Financial Accounting
Management Accounting Financial Accounting

1. Internally focus 1. Externally focus


2. No mandatory rules 2. Must follow externally
3. Financial and nonfinancial imposed rules
information; subjective 3. Objective financial
information possible information
4. Emphasis on the future 4. Historical orientation
5. Internal evaluation and 5. Information about the
decisions based on very firm as a whole
detailed information 6. More self-contained
6. Broad, multidisciplinary
Information and Decisions

Top-Level
Management Strategic
Summarization
Middle and Filtration
Management Tactical

Lower-Level Operational
Management
Transaction Oriented
Business Processes

Primary Business Processes


Inbound
Inbound Sales
Sales Outbound
Outbound Sales
Sales
Logistics
Logistics Logistics
Logistics

Operations
Operations Marketing
Marketing

Service
Service
Business Processes

Supporting Business Processes

Technology
Technology
Procurement
Procurement Development
Development

Human
Human Firm
Firm
Resources
Resources Infrastructure
Infrastructure
Transaction Processing Cycles
• Transaction cycles have traditionally
grouped activities of a business into four
common cycles of business activities.
1 Revenue cycle
2 Expenditure cycle
3 Production cycle
4 Finance cycle
Transaction Processing Cycles

• A fifth cycle is the financial reporting


cycle.
• The financial reporting cycle is not an
operating cycle.
• It obtains accounting and operating data
from the other cycles and processes
these data into financial reports.
Internal Control Process
• The internal control process is a process
designed to provide reasonable assurance
regarding the achievement of objectives
in:
– reliability of financial reporting
– effectiveness and efficiency of operations
– compliance with applicable laws and
regulations
Mail
Customer
A Data Flow Diagram (Figure 0
Diagram) of a Sales Commission
1.
Open
System
mail Sales
orders

Entered
2. sales orders
Enter sales Sales order
order data
Entered form file
sales order
data
3.
Sort
sales Sorted
order s sales
records
Sales commission
4. report Sales
Compute
sales manager
commissions
B-15
Mail A Context Diagram of a
Customer Sales Commission System

Sales
Commission
System

Sales
commission
report
Sales
Manager
B-16
A Model of a Manufacturing System
Output
Input subsystems Data Information

subsystems
Accounting Production
information subsystem
system
Internal D
sources A Inventory
subsystem
Industrial T
engineering Users
system
A
B Quality
Environmental subsystem
sources
A
S
Manufacturing
intelligence E Cost
subsystem subsystem

C-17
Location of
Receiving area 1 Data Collection Terminals
Receiving Terminal
inspection 2

Raw-materials
storeroom 3 4 5

6
8

9 Shop floor area


7
10

Finished-goods
storeroom 11

Shipping area 12

C-18
Flow of Labor Information
Strategic level
Industrial relations
management
Labor Unions department

Union contract
performance

Government

Personnel
•Suppliers requests
•Employment
agencies Human
Manufacturing
•College & resources
management
universities department
•Trade
Applicant
schools
data

Global
community

Competitors
Formal flow Employees
Informal flow
C-19

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