his/her performance will be evaluated. .
5. Recommendations to improve the budget process might include: .
- The budget could be presented using the contribution approach and segregating variable and fixed costs. .
- There could be a comparison to prior year actuals so that managers know if their contributions have increased or decreased. .
- The expense items could be presented as a percentage of sales. .
Audit Committee.
- Management has the overall responsibility for protecting company assets and, therefore, for establishing, maintaining,.
and evaluating the internal control system. .
- The audit committee's primary responsibility involves assisting the board of directors in carrying out its responsibilities as.
they relate to the organization's accounting policies, internal control, and financial reporting practices. The audit .
committee assists management and the board in fulfilling their fiduciary and accountability responsibilities, and it.
helps maintain a direct line of communication between the board and the external and internal auditors. .
- The external auditor reviews the organization's control structure, including the control environment, accounting systems,.
and control procedures, in order to assess the control risks for financial statement assertions. In addition, the external auditor.
would inform the company of any material weaknesses found during the review.
- The internal audit department performs both operational and financial audits to determine compliance with established .
policies and procedures and reports its findings and recommendations to management or the audit committee for evaluation.
and corrective action.
- Obtaining assurance that the organization's control system is adequate and effective to identify risk and exposure, and .
that the financial disclosures made by management reasonably reflect the financial position, results of operations, and.