Audit Essay Example | Topics and Well Written Essays - 500 words

Audit - Essay Example It has no intentions of growing thru expansion, enter into new contract (due to limitations of financial capability), or withdraw any line of business it is representing. All the lines it is representing are selling well and have contributed to the revenues earned by the company. Marketing activities of the company are direct and not very excessive. They do it on tradeshows, exhibits, and do lot of announcements thru social media and e-mails. Since company is limited to loyal customers, up-dating them on company products is easily done. Yes, cost-reduction steps can be taken. Cost reduction is implemented by monitoring of monthly operating costs and trying to figure out which expense could be limited. Company practices cost reduction on variable expenses such as travel, representation, energy consumption and miscellaneous expenses. Control procedures of the company are accounting controls, cash control, separation of duties, documentation of all transactions and regular audits. They are adequate controls to ensure that employees are performing their duties honestly and in accordance with company’s objectives. Yes, management performs periodic analysis of operation in all its angles thru the establishment of a performance goal. Here, management and employees sit down and talk how to accomplish the goals and objectives of the company by setting a specific target in a specified time. Each company assigned with different tasks, agree to set a specific goal of accomplishments. Management monitors accomplishments regularly, or as often as monthly. Yes, this also is monitored very closely on a weekly basis. Internal control is established as a process of monitoring marketing costs and its relative profitability. This process is the responsibility of the Accounting