Knowledge audit concepts, processes and practice
ELISSAVETA GOUROVA Faculty of Mathematics and Informatics Sofia University 125, Tzarigradsko shosse Blvd., bl. 2, Sofia BULGARIA [email protected] http://fmi.uni-sofia.bg ALBENA ANTONOVA Centre for Information Society Technologies Sofia University 125, Tzarigradsko shosse Blvd. bl. 2 fl. 3 BULGARIA [email protected] http://www-it.fmi.uni-sofia.bg/cist/ YANKA TODOROVA Faculty of Mathematics and Informatics Sofia University 125, Tzarigradsko shosse Blvd., bl. 2, Sofia BULGARIA [email protected] http://fmi.uni-sofia.bg Abstract: - The paper considers the importance of knowledge management in the new economy, and focuses on the concept of knowledge audit and its need for developing and monitoring the knowledge management implementation. A special focus is made on knowledge audit concept and the approaches and processes proposed and used in practice. The paper highlights also some tools utilized in knowledge audit and the metrics used for knowledge measurement and evaluation of knowledge management benefits for organizations. A special attention is paid on balanced scorecard methodology and social network analysis use in knowledge audit. A new extended knowledge audit approach is proposed and some measurement considerations. The paper presents results of surveys carried out in some small and medium organizations for determining the knowledge management needs and usage, as well as knowledge audit pilot results.
In the last century, an unprecedented speed of new knowledge creation was observed, leading to faster innovation, sophistication of products and services and their supply and demand, and deep changes in all areas of public life , , . Business processes have become more dynamic than ever before, and the new technologies have contributed to a fast changing environment. In the new economy knowledge in both of its forms – tacit and explicit – has become one of the main factors for sustainable development and competitive advantage. Within the competitiveness and economic growth objectives of the European Union, the concept of knowledge has
emerged as main differentiator and unique resource, and European companies and organizations have become more concerned how to successfully manage their knowledge resources and gain benefits from them , , . Knowledge management (KM) has emerged as response to the increased complexity in the business world and the need to take advantage of the available knowledge assets in organizations. It has developed as a new practice-oriented scientific discipline, exploring the opportunities of new management methods, cultural and organizational approaches and technology infrastructures in service of the companies. Initially, driven by information and communication technologies (ICT) uptake, later
KM has focused on human and culture-related issues. In order to grasp the KM benefits, companies need a serious change, including not just new technology deployment, but also their integration into knowledge and business processes and their proper usage by motivated employees . In general we are witnessing today a wide shift in KM approach. Due to the emergence of social technologies and resulting appearance of collective intelligence, companies need to reformulate their overall KM strategy. Previously focused mainly on knowledge capturing within company repositories and development of sophisticated knowledge portals, KM today has been rebuilt as new social tool and perspective for cooperation and collaboration ....
...What is a KnowledgeAudit?
What is an Audit?
“The most general definition of an audit is an evaluation of a person, organization, system, process, project or product. Audits are performed to ascertain the validity and reliability of information, and also provide an assessment of a system’s internal control. The goal of an audit is to express an opinion on the person/organization/system etc. under evaluation based on work done on a test basis. Due to practical constraints, an audit seeks to provide only reasonable assurance that the statements are free from material error. Hence, statistical sampling is often adopted in audits. In the case of financial audits, a set of financial statements are said to be true and fair when they are free of material misstatements – a concept influenced by both quantitative and qualitative factors.” –However a knowledgeaudit works a little differently, its more of a qualitative evaluation. Its essentially an investigation of an organizations knowledge “health”.
How to Implement a KnowledgeAudit?
In today’s knowledge economy it is obvious that knowledge can provide numerous sources of competitive advantage including an ability to learn or an ability to learn faster, increased creativity, increased profits and ...
...The case study depicts the problems associated with a regency grand, a five-star hotel situated in Thailand. Initially the hotel was performing well under Thai General Manager; however since the takeover by a large American hotel chain, regency grand hotel was experiencing deteriorating circumstances regarding its business and reputation. Mr. Becker was inducted as a new General Manger if Regency Grand Hotel. He was interested in applying the concepts, methods, policies and procedures of hotel management which he earlier practiced successfully in the United States to the Regency Grand Hotel. Mr. Becker’s success was mostly on acquisition were the operations were experiencing low morale and poor profitability. One of the major points in this case study is the fact that Regency Grand Hotel was not experiencing low morale and poor profitability. In fact Regency Grand Hotel was one of the top performing hotels of Thailand were employee satisfaction was high. Mr. Becker’s expertise was in successfully implementing management strategies in a sinking organization rather than in an established and stable organization. Research has shown that the right employee should be hired at the right time. [r]
One of the major issues as delineated in the case study is the implementation of same Human Resource Management Strategy in different countries. This Human Resource Management strategy by Becker comprised of introducing the concept of decentralization at Regency Grand Hotel....
...26th May, 2011 3600
Knowledge Management AuditReport
Hewlett Packard (HP) is a leading multinational organization providing products and services in many IT related technologies such as computer hardware and software, printers, scanners, storage devices etc. In 1995, the company decided to introduce knowledge management in its organization that will make its systems, processes, outcomes superior with organized and systematic knowledge handling and storage. HP faces severe competition and thus has to be ahead of the market using many strategies, one of which is application of Knowledge Management (KM). With over 600 business units located globally in a decentralized structure, the idea was to integrate knowledge within, across all streams of organization and beyond. HP started its KM campaign defining its vision, creating the design for KM and then beginning the transition (Martiny, 1998). HP has made a concerted effort to keep the KM strategies aligned with The Australian Standard AS5037-2005 that provides guidance on what are the principles of knowledge management and the parameters of implementation that can be adopted using a flexible framework. Knowledgeaudit case study of HP reveals that KM is conducted through 5 guidelines: share, innovate, reuse, collaborate and learn (Garfield,...
INTERNAL AUDIT OF
Held on 25/06/2013
Internal Audit Department
June 30, 2013
A.I Textiles, 11-Km Jaranwala Road,
Subject: OBSERVATIONS REGARDING PHYSICAL STOCK TAKE OF ACCESSORIES STORE
With reference to the subject captioned, we have undertaken the physical stock take assignment of store accessories physically available on the site on 25 june 2013. Scope of stock take assignment includes audit of entire store accessories physically and stock documentations associated with them.
During the stock count we observe the following weaknesses and ascertain the risks associated with them and developed following suggestions to develop controls to address these weaknesses. The details of these are as follows:
1. Excessive Accessories stocks found as compared to system report.
During the audit we observe that some of stock physically available is in excess as compared to the stock as per stock report. For details of these please, see annex “A”.
Later on discussion with store incharge Mr. Adeel it came to know that, this problem occurred due to stock shifting, adjusting stock report, bulk quantity counting of stock parallel with routine activities etc. some GRNs and store issues are also not properly posted in time, that is why this issue raise....
11. If the objective of a test of details is to detect overstatements of sales, the auditor should trace transactions from the
A. Cash receipts journal to the sales journal.
B. Sales journal to the cash receipts journal.
C. Source documents to the accounting records.
D. Accounting records to the source documents.
12. Which of the following is least likely to be considered when assessing inherent risk?
A. Nonroutine transactions.
B. Estimation transactions.
C. Susceptibility to theft.
D. Expected effectiveness of controls.
13. The risk that an auditor’s procedures will lead to the conclusion that a material misstatement does not exist in an account balance when, in fact, such misstatement does exist is referred to as
A. Audit risk
B. Inherent risk
C. Control risk
D. Detection risk
14. Evidential matter concerning proper segregation of duties ordinarily is best obtained by
A. Preparation of a flowchart of duties performed by available personnel.
B. Inquiring whether control activities operated consistently throughout the period.
C. Reviewing job descriptions prepared by the personnel department.
D. Direct personal observation of the employees who apply control activities.
15. According to the Code of Professional Ethics for CPAs, which of the following fee arrangements is prohibited?
A. A fee for a review of financial statements that is based on time spent on the engagement.
B. A fee for a review of financial statements that...
Chapter 2: Professional Standards
Self-regulated: the standards governing audits were established by members of the profession themselves
Sarbanes-Oxley Acct of 2002
Created: Public Company Accounting Oversight Board (PCAOB) to provide external and independent oversight over the audits of public entities
Responsible for registering public accounting firms, establishing standards for audit engagements, and inspecting the quality of audits conducted by public accounting firms
****Generally Accepted Auditing Standards (GAAS)****
AICPA’s Auditing Standards Board introduced Statements of Auditing Procedures (1939-1972)and Statement of Auditing Standards (1972-present): to provide guidance for the conduct of audits
PCAOB issues auditing standards which are subject to approval by the SEC
Taken together, the relevant pronouncements of the AICPA and PCAOB are collectively referred to as the generally accepted auditing standards (GAAS)
1. A pronouncement issued by the AICPA prior to April 2003 that has not been amended or suspended by the PCAOB (Interim Auditing Standards)
2. A pronouncement issued by the PCAOB that has been approved by the SEC (Auditing Standard)
Auditing Procedures: the particular and specialized actions that auditors take to obtain evidence in a specific audit engagement
Auditing Standards: quality guides to the audit that apply...
...Identifying relevant Malaysian Financial Reporting Standard with Inventory Cycle
Referring to have been stated above, the selected company was a small sized entity and therefore, the processes under its inventory cycle was not complex like those in retailers as well as manufacturers.
Figure 1.1 Inventory cycle with shaded area for activities related to MFRS
Principally, the fundamental issue in accounting for inventories is to define the amount to be recognized as asset as well as amount to be charged as expenses in contrast to associated revenue. Therefore, FRS 102 Inventories provide guidelines in determining the cost of inventories, cost formulas used to assign costs of inventories, the amount recognized as expenses and write down to net realisable value. Inventories comprises those:
Held for sale in the ordinary cost of business;
In the process of production for such sale; or
In the form of materials or supplies to be consumed in the production process or in the rendering of services (Lazar & Choo, 2008).
Inventories also includes goods purchased and held for resale which encompasses buying merchandise by a retailer.
Connecting to the selected business, the existence of the inventory of Waqec Stationary Sdn Bhd, are essentially buying the merchandise and held them for sale in the ordinary cost of business which is under the classification of inventories.
As we can see from the figure 1.1 above, FRS 102 Inventory in this case mainly focuses on the...
...Beginning the AuditReportAudit Process Plan
100 Shoe Plaza
Shoetown, ME 00001
[ENTER TODAY’S DATE]
Chairman, President and CEO
Apollo Shoes, Inc.
100 Shoe Plaza
Shoetown, ME 00001
Dear Mr. Lancaster,
This letter explains how I intend to carry out the audit process for Apollo Shoes, Inc. I will continue audit services for the company, which will involve a series of steps. I first need to receive the preliminary list including organizational charts and financial statements. I will plan the engagement while assessing the risk. Risk assessment will help me identify key risks that the company has and making plans on how to properly address those risks. After risk assessment is complete, I will plan the audit and schedule a meeting with management of Apollo Shoes, Inc.
During the management meeting, senior management and administrative staff who will be involved in the audit process need to be present. I will discuss with them the overall scope of the audit, and answer any questions about audit areas that the staff is concerned about. We will then go over the timeline of the audit and ensure that timing issues and deadlines are satisfactory to both the auditor and the client.
After the meeting, I will finalize the audit plan before beginning fieldwork. Fieldwork...