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Management Consultancy

Management Consultancy

  •     Management Audit

Our management audit services cover in-depth and scrupulous checking of all day-to-day transactions. Our experienced professional consultants and auditors ensure that all dealings are as per the management's guidelines, policies & procedures and have conducted internal audits for various corporate houses and business establishments. Further, they assist the management in improving systems and check financial data and also assist in clients business from detecting errors and omissions to rectifying such errors, preventing fraud and to cut down redundant costs.

Generally, every company is required to verify physically his fixed assets and stock in trade, once in a year through an independent agency.

We offer services in management audit services matters relating to:

Cost savings and cost reduction advices.

Review of MIS.

Financial data audit.

Testing compliance with system process and procedures.

Detection of errors and omissions.

Rectification of errors.

Prevention of fraud.

Suggestion for improvements in systems and procedures.

EDP audit and suggestion for internal control computerized environment.

Periodical reporting of audit finding.

  • Designing of Internal Controls, Systems and Processes

Internal Control and Accounting System Design

Internal control, as defined in accounting and auditing, is a process for assuring achievement of an organization’s objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies. A broad concept, internal control involves everything that controls risks to an organization.

It is a means by which an organization’s resources are directed, monitored, and measured. It plays an important role in detecting and preventing fraud and protecting the organization’s resources, both physical (e.g., machinery and property) and intangible (e.g., reputation or intellectual property such as trademarks).

Keeping track of Inventory

Clerk conducting physical inventory count using a handheld computer in a Tesco Lotus supermarket in Sakon Nakhon, Thailand

At the organizational level, internal control objectives relate to the reliability of financial reporting, timely feedback on the achievement of operational or strategic goals, and compliance with laws and regulations. At the specific transaction level, internal control refers to the actions taken to achieve a specific objective (e.g., how to ensure the organization’s payments to third parties are for valid services rendered.) Internal control procedures reduce process variation, leading to more predictable outcomes. Internal control is a key element of the Foreign Corrupt Practices Act(FCPA) of 1977 and the Sarbanes–Oxley Act of 2002, which required improvements in internal control in United States public corporations. Internal controls within business entities are also referred to as operational controls.

Internal control plays an important role in the prevention and detection of fraud. Under the Sarbanes-Oxley Act, companies are required to perform a fraud risk assessment and assess related controls. This typically involves identifying scenarios in which theft or loss could occur and determining if existing control procedures effectively manage the risk to an acceptable level. The risk that senior management might override important financial controls to manipulate financial reporting is also a key area of focus in fraud risk assessment. The AICPA, IIA, and ACFE also sponsored a guide published during 2008 that includes a framework for helping organizations manage their fraud risk.

Controls can be evaluated and improved to make a business operation run more effectively and efficiently. For example, automating controls that are manual in nature can save costs and improve transaction processing. If the internal control system is thought of by executives as only a means of preventing fraud and complying with laws and regulations, an important opportunity may be missed. Internal controls can also be used to systematically improve businesses, particularly in regard to effectiveness and efficiency.

Internal control

An effective internal control structure includes a company’s plan of organization and all the procedures and actions it takes to:

•Protect its assets against theft and waste.

•Ensure compliance with company policies and federal law.

•Evaluate the performance of all personnel to promote efficient operations.

•Ensure accurate and reliable operating data and accounting reports.

As you study the basic procedures and actions of an effective internal control structure, remember that even small companies can benefit from using some internal control measures. Preventing theft and waste is only a part of internal control.

In general terms, the purpose of internal control is to ensure the efficient operations of a business, thus enabling the business to effectively reach its goals.

 Companies protect their assets by (1) segregating employee duties, (2) assigning specific duties to each employee, (3) rotating employee job assignments, and (4) using mechanical devices.

Unfortunately, even though a company implements all of these features in its internal control structure, theft may still occur. If employees are dishonest, they can usually figure out a way to steal from a company, thus circumventing even the most effective internal control structure. Therefore, companies should carry adequate casualty insurance on assets. This insurance reimburses the company for loss of a nonmonetary asset such as specialized equipment. Companies should also have fidelity bonds on employees handling cash and other negotiable instruments. These bonds ensure that a company is reimbursed for losses due to theft of cash and other monetary assets. With both casualty insurance on assets and fidelity bonds on employees, a company can recover at least a portion of any loss that occurs.

Internal Control Responsibility

Internal control is the general responsibility of all members in an organization. However, the following three groups have specific responsibilities regarding the internal control structure.

Management holds ultimate responsibility for establishing and maintaining an effective internal control structure. Through leadership and example, management demonstrates ethical behavior and integrity within the company.

The board of directors provides guidance to management. Because board members have a working knowledge of the functions of the company, they help shield the company from managers who try to override some control procedures for dishonest purposes. Often, an efficient board that has access to the company’s internal auditors can discover such fraud.

Auditors within the organization evaluate the effectiveness of the internal control structure and determine whether company policies and procedures are being followed. All employees are part of a communications network that enables an internal control structure to work effectively.

  • Claims Verification

Everybody is looking to make a quick buck, sometimes this takes the form of earning through fake insurance claims. But are there no checks and balances, you may wonder. The short answer is no, and that’s why there are many who get away without the requisite verification. Not to worry, DCode Research services provides you claims verification to ensure no one takes you for a ride nor claims insurance without a valid reason.

Companies shy away from verification of claims of all types such as life insurance, medical insurance, accident insurance, general health insurance, home insurance, jewellery insurance or vehicle insurance, etc. because they worry that the cost of verification may be high in terms of time and money. Besides the sheer population of India makes claims verification a mammoth task. But check this fact: A recent survey estimated the number of false insurance claims in India to be around 10-15 per cent of total claims, despite existing in-house verification

processes in companies. This is HUGE. The report further suggests that the health insurance industry in India is losing approximately Rs 600 crores on false claims every year.

Clearly, such a daunting scenario requires action on your part. Enlist DCode Research Services to conduct an intensive verification into all insurance claims. DCode Research Services has trained investigators who get to the bottom of claims verification whether it is life insurance, medical insurance, accident insurance, general health, jewellery insurance, home insurance or vehicle insurance. All this is done in a time and cost effective manner for companies anywhere in India.

The choice to outsource DCode Research Services is simple really. Would you rather be a company that accounts for the Rs600 crores in fraudulent insurance claims? Of course, it’s a no brainer. When you enlist DCode Research Services to verify insurance claims anywhere in India you can rest assured that you get the best player in the industry for the job. We’ll make sure that your company is not duped of a single paisa in false insurance claims.

  • Preparation of Standard Operating Procedures

Standard operating procedure (SOP) manuals

Need for Standard Operating Procedures (SOP) Manual:

Brings about clarity on the way organizations and its various departments/processes function

Provides an opportunity for review of internal control mechanism and identifying gaps in internal controls.

Facilitates building up strong Information Technology (IT) and Enterprise Resource Planning (ERP) systems

Opportunity for benchmarking against good prevalent practices in the industry.

Standardisation of systems and procedures, documentation, MIS, etc. across the organization.

Enables effective corporate governance practices to enhance management’s contribution

Provides an effective tool for management control

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