Accounts

Contribution - the Concept We love most

By Contribution, we are referring to Sales minus Variable Cost. In Tulasi S Sastri's four decades of working in Industry, he had applied this concept in many organizations, with great gains. For him today, it is perhaps the most important concept in Management Accounting. In one organization, it helped in achieving a turnaround. In another, it helped in evolving a profitable pricing strategy.

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How do we assess the Quality of Fixed Asset Records and related Controls?

Internal Financial Controls, under the Companies Act 2013, are Policies and Procedures, adopted by the company for ensuring orderly and efficient conduct of business, and among others, include, “Safeguarding of its Assets”. Let us see the Questions which the Internal Auditor could ask to evaluate the effectiveness of controls relating to Fixed Assets.

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Ten true instances of misappropriations / cash embezzlement by employees of F&A, Administration or HR, and possible remedial measures.

Accountant cum Cashier at a Branch Office: In an organization in auto-ancillary industry, a Branch Office was catering to the marketing needs of four divisions of the company. One of the divisions maintained a bank account to meet day to day cash requirements of all the four divisions.

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Human Resources

Why do people leave organizations, even if they are well paid?

In a HR workshop, which Mr. Sastri attended some time ago, the speaker asked, “Why do people, those in senior positions included, sometimes, leave organizations, even when they are paid high salaries and given good perquisites?” It prompted him to share with the participants of the workshop, a story from Chandamama, he had read during his younger days.

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Ten true instances of misappropriations / cash embezzlement by employees of F&A, Administration or HR, and possible remedial measures.

Accountant cum Cashier at a Branch Office: In an organization in auto-ancillary industry, a Branch Office was catering to the marketing needs of four divisions of the company. One of the divisions maintained a bank account to meet day to day cash requirements of all the four divisions.

Read More

Operations

People Dependency to Process Dependency

When organizations start, naturally, it is people who matter most. It is people who conduct business, execute transactions and help in business growth. People who are associated with the initial growth phase of the organization usually occupy important positions, control operations and matter most when it comes to decision making and commercial success of the organization.

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Law

Internal Audit under the Companies Act 2013 - Opportunity or Responsibility for the Internal Auditor?

Since Internal Audit has been given statutory recognition (under Section 138 of the Act), and has been made mandatory for certain categories of organizations, for the first time, it significantly expands audit opportunities. Certain other related provisions in the Act, enhance the scope of such audits, and place greater responsibility on the Internal Auditor, which Mr. Sastri wishes to highlight in this article.

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Inventory Management

How do we assess the Quality of Fixed Asset Records and related Controls?

Internal Financial Controls, under the Companies Act 2013, are Policies and Procedures, adopted by the company for ensuring orderly and efficient conduct of business, and among others, include, “Safeguarding of its Assets”. Let us see the Questions which the Internal Auditor could ask to evaluate the effectiveness of controls relating to Fixed Assets.

Read More