Introduction
Organizational development is, in detail, utilized as one indicator of effectiveness for little enterprises and is a basic anxiety of many performing managers. The organization expansion can be carried in different ways i.e. joint ventures and alliance, licensing, new market, new product development etc
Organizational development is the use of organizational resources to improve efficiency and elaborate productivity. It can be utilized to solve troubles inside the association or as a way to analyze a method and find a more efficient way of doing it. Implementing organizational development needs a buying into of time and money. But when you realize its importance, you can justify the costs. The main perspective of this assignment is to analyze the importance of Single based audit and implementation of the same. Three different section has been used to complete this particular assignment which are mentioned below,
- Brief Description about the Topic
Financial audits, in order to ascertain the validity and reliability, and to provide the system's internal control assessment. Objectives of the audit is to express the views of people / organizations / systems and other issues in question, under the process of assessment based on work done on a test foundation. This topic is all about analyzing the updates in the Single Based Auditing and its impact over the employees and on the companies as well.
- Discuss the Significant Aspects
Under the premises of United States, the Single Audit can also be referred as OMB -133 Audits, is essentially a close-knit organization-wide audit or inspection entity consumption of 50 million or more, through the Federal Aid. Single audit is based on federal support which may also be termed as federal funds or federal grants or sometimes is federal awards, which is usually acquired to perform its maneuvers (Accountability, 167). Single Audit is basically a phenomenon, which is usually performed on annual basis So that a single audit objective is to give the U.S. government guarantees; these funds are managed and effectively used by beneficiaries for instance nation, education institutions, metropolitan areas and through non-profit organizations as well. Therefore, it does not decide how to allocate its resources, will not know its segment or product line is profitable, it is not. In addition, it cannot manage its affairs, because it does not have the ability to tell the status of its assets and liabilities, and in the market, due to its inability to consistently produce products and services in a reliable manner renders unreliable.
Most of the companies around the world are now focusing on this particular aspect and found this thing extremely effective to boost up the financial competitiveness of the company in total. If the implementation of the same could be effective, then it may happen that all of the things would be decreased accordingly, along with the decrease of all of the issues in total. Though the implementation plan as well as the applicability of the same single audit based function is typical but it would certainly bring effective stance towards the company.
The cost of capital is very important for each company, regardless of its size. Capital costs consist primarily of investment-related risks, if there is more risk investment, investors will demand a higher return on investment. As a result of effective single audit structure implementation can shrink the risk of various forms, including information risk, the risk of fraud and misappropriation of assets, and risk of suboptimal management because of deficiency in information on its operations.
Components of Single Audit Update
The federal government of different countries are now providing extensive array of federal assistance to the recipients who reach over the revenue of $ 400 billion, which provides grants to thousands of individuals in order to provide benefits to the general public, predominantly in the areas of health, education, public based safety and welfare public works. Single auditing which is all about encompassing the financial statements, financial records and all other expenditure in total, are also important to enhance the productivity of the companies.
There are different stages of Single Auditing, and in the first stage, which also known as planning stage, an auditor must study the recipient in order to determine the level of low and high risk provision. Second stage of the single audit is all about audit the federal based assistance and programs. Planning, which is the 1st stage of the same, is known as the most important part of the Single Auditing as it allows and enables an auditor to design and then perform the audit with quality and with full of efficacy.
Occurrence of changes from last Circular
The first step that lies in this particular analysis would be the planning phase and the step of the same are mentioned below,
Move further towards Low or High Risk Audit tee
The association of risk could be extremely important for an organization in total and it depends upon the low and high risk provision. Single Based Audit Update analyzes the level of risk association in a company in total. The findings of the audit could have been analyzed with the stance of decreasing down the level of risk.
New Way of Identification of the Federal Assistance Program in New Circular
In order to identify the federal assistance program, the compliance department of a company would have been analyzed and planned accordingly in the new circular. This particular program would analyze the total amount of expense and revenue in total. There is a program that comes under the ambit of Single Audit as far as Assistance Program is concerned. OMB Circular A-133 requires that federal programs be categorized in two groups: Type A programs and Type B program
Assessment of Risk in New Circular
In this particular provision, the single audit team will analyze the level of risk found in an organization
Changes in Compliance based Audit in new circular: Examination Stage
In the compliance based auditing, single auditor will analyze how much the company is in compliance with the compliance and all of the standards. Compliance requirements are series of directives provided by Federal agencies that summarize hundreds of laws and regulations applicable to federal assistance and are important to the successful management of such assistance
Single Audit Base Updates: New Circular
Single Audit Base Updates including the compliance based system that will occur in the year 2013, along with the changing of the collection form. The new compliance system of Single based auditing has been initiated in the year 2013. The matrix of the compliance requirement of the company lies in removing the programs effectively, along with modifying the compliance requirement of the companies. Problems like lack of materiality would certain eliminate with the help of Single Audit based.
The essence of update found in almost every aspect of this single based auditing, which predominantly are, Procurement or suspension along with the Debartment, Reporting and Agency program requirement. Data collection and reporting are some of the major aspects which have been found effective in this particular update which certainly have an effect with the company.
For the new companies, which are having the single audit stance certainly increase or enhance their level of efficiency and productivity along with its effectiveness. Elimination of Frauds, misrepresentation and abuses is quite common in this particular audit based systems. Single Auditing also eliminates all the duplicate requirements of the case and it would bring economic prosperity to the company. There would be no material weaknesses lies in the company as far as their financial reporting is concerned. Continuous changes in this particular industry made this industry perfect, but all of the actions and measures which have been made and implemented are bit harsh but it will positivity to a company even at the time of economic crisis as well.
Pros and Cons of single auditing:
Pros:
- Internal and external single audits can eliminate or reduce the chances of fraud within or outside the company to its least level.
Cons:
- The single auditing framework can be failed to disclose the correct information. Background entries may not be entirely clear, auditors and managers may be vague clarification. Whether these things happen, the auditor has to issue an audit report even in this scenario.
- Single Audit’s another disadvantage is that they do not always show the true picture. The purpose of an auditors get blurry when they are failed to see the real business issues, then the entire view is become changed.
- Some authorities have not received their grants program as a separate authorization audits conducted as much information. Therefore, some organizations need to go beyond the single audit requirements to grant audit work.
There is yet another terminology with the name of single audit based things and it is one of the most widely used terminologies of accounting and auditing that stride under certain things (Cashin, p. 233). The main perspective of this assignment is to analyze the essence of single auditing based things along with its applicability and importance as well. Most of the countries are now focusing on having a single audit stance of a company in total. The office of Management and Budget (OMB) issued the Uniform Guidance for the Audit and Administrative requirements of the Federal awards. Everything is different in the single audit based stance even the threshold as well, which is about to furnish in this particular analysis as well. It is required to utilize the stance of Single Audit based change. There are two other aspects of this assignment as well, that needed to be discussed in this particular analysis. The next section is all about the significance based aspect analysis, along with the timetable and implementation plan as well. Let’s now move towards the same.
- Impact on the Internship Employer
It is an obvious fact that the employers found in these companies are usually internees or similar type of people who worked for part time basis. The traditional based things relating to the same aspect is quite effective for such internship based employers in total and there would be an effective impact over them in total. The traditional approaches relating to the employers could be extremely effective for the future of the employers in total and they may work better and with their full capacity. Positive impact over the employer or internees would come over the place after implementing the applicability of Single based audit.
The impact on the companies, who qualify for the same, would be effective in terms of both financial and strategic point of view. It would analyze the financial aspect of these companies along with analyzing any sort of manipulation in the accounts of the company. Employees would not receive any sort of impact of the same.
- In order to conduct single audit, the employer or any recipient must be qualified by adhering to such requirements which are mentioned below:
- In order to maintain the system of internal control in all federal programs to demonstrate compliance with relevant laws and regulations
- Determined by the Federal Domestic Assistance grant program (CFDA) number and title catalog, granting agencies, the year awards, as well as any pass-through entity (if applicable)
- Ensure that OMB Circular A-133 audit under the authority of the appropriate federal entities need to be filed.
- Any follow-up audit findings, questioned costs, or compliance issues. This relates to the specific responses and, where necessary, takes corrective measures to address the current and / or previous findings.
- Sign in official data collection and review with the independent auditor is submitted with the form. The recipient organization is liable, even if the accuracy and timeliness of these forms prepared by the auditors to submit the form.
Conclusion
When it comes to organizational productivity, then there are certain things which have to be considered accordingly. Economic profit is the one for which organizations are made for and competing through different stances in total. There are basically two types of profits, which predominantly are, accounting profit and economic profit. Accounting profit is the one from which not all the possible outcomes have been deleted accordingly, but on the other hand economic profit is the one from which all the potential and possible costs have been subtracted completely. Usually economic profit is been taken into consideration for taking decisions for an organizations.
In order to become economically competitive and perfect, entities have to comply with the given standards and regulations. When it comes to standards, there are number of methods and standards which specifically associated with different types of things in total and regulations should be mold and made in a manner that it creates effective things for a company. Organizational standards usually referred as Corporate Social Responsibilities (CSR) or Corporate Governance (CG), therefore any of the related and mentioned term could be used interchangeably. The main perspective of this assignment is to analyze the importance of Single based audit and implementation of the same. From the entire analysis, it is found that the provision and activities of auditing could be extremely effective for an organization and the implementation of single based audit is also effective as well. There would be no impact of such single auditing on the employees but it may impact over the financial belongings of the company.
Works Cited
Accountability, United States Government. Single Audit: Update on the Implementation of the Single. Washington: BiblioBazaar, 2011.
Cashin, James A. Auditing: Principles and Practice. London: PHI Learning Pvt. Ltd., 2011.
Gramling, Audrey A. Auditing. Chicago: Cengage Learning, 2012.
Millichamp, A. H. Auditing. Miami: Cengage Learning EMEA, 2007.
Rittenberg, Larry E. Auditing: A Business Risk Approach , 8th ed.: A Business Risk Approach. New York: Cengage Learning, 2012.
