Financial Management For Non Financial Professionals and The Audit Process (Best Practices for Auditees and Auditors)

Dates: 2 -3 June 2022
Location: Kitwe

Financial Management for Non Finance Professional and The Audit Process

The Business Environment and the Role of Accounting

The Business Environment
The Uses and Purpose of Accounting
Users of Accounting and Financial Information
Accounting Terminology
The Dual Entry Accounting System
The Income Statement – financial performance
The Balance Sheet – financial position
Cash Flow vs. Profit
The Links between the Cash Flow Statement, Income
Statement and Balance Sheet
Company Objectives and Financial Statements:
Measuring company performance
Value creation and the primary objective of
maximization of wealth
Income statement profit and loss account
Balance sheet
Cash flow statement
Costing
Fixed costs, variable costs, and overheads
Overhead allocation, absorption, and the use of
activity-based costing ABC
Expenses versus inventory stock valuation
Cost/Volume/Profit CVP Analysis:
Cost, volume, profit relationships
Break-even analysis
The impact of cost structure changes
Limitations of break-even analysis
Decision-Making:
Relevant costs
Shut-down versus continuation
Make versus buy
Product mix and limited resources
Decision trees

Sources of Finance
Equity
Debt
Advantages and Dusdvantages of sources of
Finance > Combined cost of Capital
Investment Decisions (Capital Budgeting)
Free cash flow Layout
Investment Appraisal Techniques

• Net Present value
• Internal Rate return
• Profitability ratio
• Cost benefit ratio
  Adjusted Present Value
  Working Capital Management
  Variables
• Inventory
• Receivables
• Payables
• Bank and Cash
  Cash Cycle
  Dividend Policy
  Types of Dividend Policy
  Residual policy
  Stable Policy
  Constant pay out
  Reading and Interpreting Financial Statements:
  Measurement of operating performance
  Measures of financial performance and financial
  position
  Risk measurement
  Limitations of ratio analysis

The Audit Process: Best Practices for Auditees and Auditors

1. Definition of Audit
2. Types of Audit

• Internal Audit
• External Audit

1. Parties Involved in an Audit process

• The Auditor
• The Auditees

1. The Audit Plan scope of Audit as specified
   by the Auditor to the Auditees
2. Initial Meeting: The Auditors and Auditees

• Audit Team Leader
• The Auditees Team Leader
• Team leaders will assign team members
  roles to have a smooth audit
• Logistics and travel plans for sites visits

1. Internal process and procedures.

• Flow of documents
• Company Policies

7. Document Filling

• Revenue records
• Cost of sales records
• Administrative records
• Distribution records
• Staff Files
• Payroll records

7. Audit Evidence

• Compliance test
• Substitative test

7. Audit finding meeting with Auditees at
   end of each or audit period

• Additional provision of Information to audit
  queries

7. The closure of Audit Finding
8. Audit report to Management

• Auditee responses to the Audit report
• First draft report and Final draft

7. Corrective Action
8. Audit Opinion

• Unqualified Audit report
• Qualified Audit report