Companies modes of operation, Auditing

Companies Modes of Operation

Some companies (especially small ones) operate without any overtly expressed plan and simply carry out the business as always, responding to market changes as they happen. Such companies are often very adaptable and survive well.

Large companies normally plan their activities in a hierarchal way, as follows:

  • Mission statement
  • Strategic plan
  • Budgets

 

Businesses are at risk if their business objectives are not achieved. It is therefore desirable for the management to identify all business risks and if necessary to amend the plan to accommodate the risks or make contingency plans to survive.

For example, a company which has over reliance on one customer might decide actively to seek new customers or markets, perhaps by acquisition.  Another example would be a company which is totally reliant on is computer system should have backup facilities.

Posted Date: 12/3/2012 6:02:54 AM | Location : United States







Related Discussions:- Companies modes of operation, Assignment Help, Ask Question on Companies modes of operation, Get Answer, Expert's Help, Companies modes of operation Discussions

Write discussion on Companies modes of operation
Your posts are moderated
Related Questions
I have a auditing case study i need to complete in chapter 8 of Auditing & Assurance service (fifteenth edition) by Alvin A. Arens, Randal J. Elder and Mark S. Beasley. I don''t kn

Charities and Non Governmental Organizations Key audit areas: Income: donations therefore are not easy to confirm good internal control is needed particularly o

Q. Explain about Wash Sale? Wash Sale - A wash sale takes place if stock or securities are sold at a LOSS and seller acquires substantially identical stock or SECURITIES 30 day

Attempts at definition of the 'true and fair' view There following quotations represent authoritative views on the meaning of true and fair view. A true and fair view impli

The agency relationship between absentee owners and managers produce a natural conflict of interest.what does it mean?

Disclosure and Presentation - Audit Process IAS 16 provides exclusive disclosure requirements. Fixed assets should be split into appropriate classes and the following shoul

Audit Approach The auditor: 1) Must get the cooperation of the client, as simply the client can authorise third parties that communicate along with the auditor. 2) Choos

Capital Commitments - Audit Process The Companies Act needs capital commitments be disclosed through a way of note to the accounts.  Therefore the auditor must execute suffici

IAS 40 Investment Properties Audit work common to all kinds of land and building will be used to establish ownership, existence and price. IAS 40 requires such companies may a

Plant and Machinery - Valuation and Authorization Valuation Valuation is at depreciated historic costs.  Auditor's duty is to make sure that the accounting policy for dep