Audit is the core subject of Chartered Accountancy Course. Students hardly do justice to this CORE subject in their Study Plans. Most of them allocate just 15-20 days to it as if its marks are not 100. Majority of unsuccessful students get 40 or below 40 in Audit and thus do a GROSS NEGLIENCE towards their career which they chose to do audit of others! The same is about our Life. We do give undue weightage to “others elements” than to focus on “our own.”
I am not here to do audit of others because I am more concerned with audit of my own which can be termed as Audit of Self or Life Audit.
BASICS OF INTERNAL AUDIT
Before we proceed further, let’s have a look on Basics of Internal Audit:
The internal audit is not subject to the review of others hence I keep my Internal Audit Report (Life Audit Report) with myself.
First of all, what does it mean by the term “Audit.”
The simple meaning of an “Audit” is to analyze the past events.
Unfortunately in new era, the STATUTORY AUDIT is more mechanical because of various reporting in “desired” format.
Many find it easy to FILL IN THE BLANKS and complete the audit assignment (Treat it as a Routine Life Cycle.
(Now-a-days, fill in the blanks in one’s Life means Good Education, Good Job, Good Life Partner, Cute Children, their Education, their Job …..and thus “running ” the LIFE CYCLE in a routine manner).
Whereas an extreme expertise and speed is required to prepare an Audit Report which throws “LIGHT” on the “DARK” sides of the enterprise.
SCOPE OF INTERNAL AUDIT:
During internal audit, we check various aspects of the enterprise viz.:
1. The decrease in sales
2. The decrease in gross profit
3. The decrease in net profit
4. The decrease in collection from debtors
5. The increase in loans without increase in the business activities
6. The increase in labour and other expenses without increase in the production
7. Various Ratio Analysis and many more.
Fortunately Internal Audit doesn’t require any “professional qualification.” It just requires practical knowledge. (A real career building program through CA course even if one remains unsuccessful in exams for years).
Internal Audit doesn’t require any “prescribed format” to report. It is fully flexible according to the need of an enterprise. In addition to the management’s perspective reporting, the Internal Audit Report takes care of legal requirements, employees’ performance and profitability etc.
But the question is:
What are the main objectives of an enterprise
- to earn profits only?
The answer is a clear No.
Now-a-days, “SURVIVAL” of an enterprise is also one of the crucial factors for any enterprise. Majority of malls are worried of wonderful performance of flipcart, snapdeal and amazon etc. Because these sites are “able” to sale the products at much speedier manner at attractive price without having any “stocks” in their hands!
Please read the above in your perspective. Are your services “saleable” at “attractive” price in “speedy” manner? If no, some “basics” are missing which are “required” in this new era.
THE FUNDAMENTAL MISTAKE
While studying the CA course, many forget the purpose they joined the course - from a decent job/career their concern comes to passing the exams! If till 30, one is struggling to pass the exams means a major deadline has missed.
The intention is not to discourage anyone. The problem is we join any course to LIVE BETTER LIFE. This is fundamental to all. The gross mistake is : Every “exam” failed wants to pass CA at “any cost.” What that “cost” is; is never “calculated.” (Show me “any” candidate who has calculated it).
So if you review your past performance compared to your “original” skills, you may find that your “labour” was employed (and still continued) where “results” were hardly expected. Merely passing the exams will not suffice to make a bright career and happy life.
With analyzing the past events, we do LIFE audit
– may it be of an Enterprise or Self.
What does LIFE require and its actual scenario:
1. Good Health: “Changed” Eating Habits have “challenged” it.
2. Good Income: It is never satisfactory! EMI increases with the increase in salary.
3. Good Working Conditions : Which is actually stressful during employment.
4. Good Recognition : In professional career, hardly there is one who “openly” appreciate other professionals.
5. Enjoy with Latest Development : Hardly there is a zeal required to be expert in that.
What should be the Action Plan to enjoy LIFE:
1. Good Health: Do Yoga and Meditation.
2. Good Income: Plan your expenditure beforehand LEAVING a sufficient CUSHION.
3. Good Working Conditions : Never accept a job which requires more than 10 hours.
(Hidden Message : Refer Point No. 5 supra or infra)
1. Good Recognition : Express your frank opinion.
2. Enjoy with Latest Development : Regularly join “short duration” courses and read Business Magazines.
Where is the FUN in above 5 point Action Plans and how these can be applied from TODAY?
1. SMILE while entering the organization/home.
2. SMILE while facing “typical” circumstances.
3. SMILE on the “mistakes” of clients/relatives. It adds “professional value” with “personal bonding.
4. SMILE on the “achivements of others.” You will immediate get recognition without doing anything else.
5. SMILE while meeting with experts. You will be automatically updated.
Find some “KEY WORDS” of your “LIFE” you “LIKE” the most and “EXPLAIN” them with your “POSITIVE ATTITUDE.”
THE KEY WORDS OF HAPPY LIFE
Don’t just read and “ESCAPE.”
The required action is “ENTER.”
CA Surendra Kumar Rakhecha, Surat