Sustainable management ability of auditing methods

Abstract: With the global economic competition, the audit of the Sustainable Management of the audit industry, increasingly, the majority of investors and corporate attention. For the sustainable management audit of the current main stay in the audited financial aspects of business, it is difficult to form a real enterprise comprehensive and clear understanding of this phenomenon, the introduction of the Balanced Scorecard model, established a balance between financial and non-financial enterprises, reflecting the business of the Sustainable Management index system and index normalization, on this basis, the use of levels Evaluation of method to determine the weight to the gray relational grade for the evaluation criteria for the Sustainable Management of the enterprise audit approach was discussed.

Company management is the core set of sustainable development of strategic thinking, the company whether the information in the Sustainable Management of the investors, creditors, regulatory agencies such as the importance of information needs are self-evident. From the current existing listed companies in China Sustainable Management of information disclosure practices of view, most listed companies do not report on the financial capacity for sustainable management of special note, investors only by means of analysis of financial statements to judge from the line [1]. there is an urgent need to separate 3 of the pArty on the sustainable management of the company's ability to conduct an objective and fair assessment and disclosure.

A sustainable management audit of July 1, 1999, "" The Independents Audit Guideline No. 17 --- going>> into effect, which in Article 6 that "CPA should maintain due professional care, reasonable the use of professional judgments, full consideration in the foreseeable future, the going concern assumption is no longer a reasonable possibility. "specific auditing standards, but pointed out that the CPA is not what methods should be used to determine whether the lack of audited units continued viability of [2]. to At present, China Although sustainable management of the audit in the audit plans, audit reports and audit the implementation phase was carried out in practice, the audit of the Sustainable Management of inadequate attention to the implementation of small efforts, the audit focused mainly stay in the evaluation of financial indicators and analysis. In recent years, rapid changes in business environment so that enterprises are facing fierce competition, business operators have realized that, to enable enterprises to access long-term, sustainable competitive advantage and maintain its stability and sustainable development, must not only been observed is good or bad the current financial results, but also must pay attention to long-term financial performance of business-driven factors, including the ability and enthusiasm of staff, excellent internal production and management, core competence and innovative processes such as internal management efficiency, market share, customer loyalty and satisfaction and other external market environment, focus on company growth and internal resources, financial policies and the organic co-ordination between the external environment, emphasizing the coordination of the company's growth and sustainable growth. By contrast, the information age enterprise, if sustainable management of its limited financial capacity of the surface of the audit, it will only give misleading signals for the era abandoned.

Balanced Scorecard review mode 2 the United States in 1992, Robert S. Kaplan and David Norton in the "<Harvard Business Review>> delivered a speech entitled" The Balanced Scorecard: good performance evaluation system, "the Article, first proposed "Balanced Scorecard" (The balanced scorecard) concept [3]. Balanced Scorecard is a comprehensive evaluation of long-term strategic goal of enterprise index evaluation system, which consists of financial, customer, internal business process, Innovation and mutual learning 4 Contact the terms of the composition, for every aspect of the design of appropriate evaluation indicators, giving different weights, can form a complete set of performance evaluation index system. Balanced Scorecard 4 aspects and indicators are as follows:
2.1 The financial indicators of financial performance of the company directly link up, can reflect the interests of shareholders. Financial indicators can be measured on an overview of the economic consequences of the program has occurred is valuable, to reflect the company's strategy, performance improvement on the net if help and how to help. So the Balanced Scorecard-financial performance indicators as an important assessment indicators, specific indicators, including profitability, asset turnover efficiency indicators, solvency indicators, targets and dividend policy, cash flow indicators.

2.2 The Client side will reflect the client's target customer interests, and is the basis for the Sustainable Management of the company. As long as the company better meet customer needs, has a huge customer base in order to create a better economic efficiency, the Sustainable Management can be maintained. customer satisfaction shows whether a company successfully met the needs of customers, is the most important indicator of clients, including customer retention and customer access rates. In addition, the customer's target range was also in the client company market share within the performance situation and the on-time delivery rate.

2.3 When internal operational aspects of internal operations as long as all aspects of the value chain to create real value, the enterprise be possible to achieve good financial results to meet the diverse needs of our customers and realize shareholder value. So the internal business aspects of the indicators should reflect the customer satisfaction and financial performance emphasis. mainly reflects the quality of the return rates, reflecting the cost of product cost reduction rate, reflecting the internal management of the core backbone of the turnover reflects the production capacity of production technology and equipment utilization and staff level ( net fixed assets divided by the number of employees).

2.4 Innovation and learning aspects of learning and growth indicators can be continued viability appraisal business situation is the key to sustainable management of the company. Business Innovation and learning, to achieve its long-term growth, customers and internal operations in order to establish the business terms current and future success factors. Specific indicators include: intellectual capital ratio (total asset value of intangible assets and the proportion of human resources), the ratio of new product revenue, employee satisfaction, employee training, update rate and extent of information systems other. BSC 4 are not mutually independent, but a different performance reflects the performance and the causal chain between drivers. It succeeded in key financial indicators of corporate and non-financial indicators are considered together, the basic reflection and balance between short and long term goals of the enterprise, external and internal objectives, strategies and tactical goals, future goals and current goals and other aspects.

3 Balanced Scorecard for enterprise Application of the Sustainable Management of the audit the audit CPA with careful planning and system audit procedures to obtain sufficient appropriate audit evidence, the audit unit was going to be reasonable assumptions full attention. Balanced Scorecard from a strategic to a financial index, such as from internal to external features of the comprehensive review, so this method can be used for corporate sustainability assessment, sustainable management of the audit in order to overcome the current emphasis on financial indicators only, and implementation difficulties problem. the practice of U.S. companies to implement the Balanced Scorecard shows that the method is not only a standard model, as the case in the Application should use to determine their specific way. Only the Balanced Scorecard principles and the specific situation of enterprises combined effect of the Balanced Scorecard can play. for different times in different enterprises or enterprises in the balanced scorecard indicators should be different. The author's discussion of the general manufacturing as an example.

3.1 Index System of the Balanced Scorecard indicator system is designed to be combined with the composition of the Balanced Scorecard, corporate strategic objectives and specific operating characteristics of the design of the Balanced Scorecard indicators of 4 types, is a key step in the corporate assessment. Should be After screening the development in order to highlight the most critical key to retain about 20 indicators, summarized into financial, customer, internal business, Innovation and learning 4, the formation of a company to reflect the index system of sustainable management framework [4] . The author's discussion of the general manufacturing, for example, under the Balanced Scorecard and business strategic objectives and specific operating characteristics, refer to such senior corporate executives, experts and experienced certified public accountant's view that the study of sustainable business enterprises capacity mainly by two types of indicators of financial indicators, namely indicators of cash flow and sustainable growth. cash to reflect the objectives of the company's survival and sustainable growth is in business to keep operating results and financial policies can be under the same growth ratio, the company profitability (return on sales), operating capacity (turnover), financial leverage capacity (equity multiplier) and the dividend policy (earnings retention) interact walls have sustainable growth rate of the composition of the four indicators of the contribution of the Sustainable Management of the company is different, it singled out these four indicators, and indicators of cash flows together with the financial aspects of the formation of index set; non-financial indicators, indicators of the client side there is a market share, customer retention, customers get rate and on-time delivery rate. internal operational aspects including capacity utilization, staff technical equipment, return rates, reduce the cost of turnover rate and the core backbone. Innovation and learning, including intellectual capital ratios, new ratio of product revenue, employee satisfaction, employee training costs ratio and the degree of information system updates. After selection of the indicators on the steps and evaluation process, the formation of a business model for sustainable management audit of the Balanced Scorecard Download Center Links to free papers http://www.hi138.com 3.2 Evaluation using AHP method to determine the weight of the four aspects of the Balanced Scorecard and its corresponding indicators have different connotations, the use of Balanced Scorecard for the Sustainable Management of the enterprise audit, the importance of each index should be based on various indicators give different weights. But the people of the importance of indicators is estimated that the uncertainty itself, so the text used to determine the weight at home TLsaaty American Operations Research presented at the 70 AHP (AnalyticalHierarchy Process, referred to as the AHP). The basic idea of AHP are: the nature of the object according to the analysis and Research purposes, the various factors in the complex phenomenon into interconnected through the hierarchy to make it structured and orderly, that is in accordance with the factors correlation between the degree and affiliation of factors according to different levels of aggregation will be combined to form a multi-level analysis of the structure model. and based on subjective judgments on specific issues, to the relative importance of each level to give the quantitative factors that the use of quantitative analysis of the final method to determine the order of relative importance of each factor value, and thus the analysis [3]. AHP following the general procedure [5]: 1) analysis of the system the relationship between various factors, the establishment of a hierarchical structure establish decision-making target tree. This step has been completed in the design of the Balanced Scorecard .2) determine the matrix of pairwise comparison structure. AHP by pairwise comparison of elements (using the Delphi method) to determine their relative importance and 1-9 scale using the proportion of the degree of importance of the assignment. First, the overall goal structure associated with the subordinate layer of each pArt of the matrix, and then from top to bottom above the level established as a pArt of the criteria, the next layer of the corresponding index structure matrix, is meant to be under the overall objective of the degree by the relative importance of each index to give the appropriate weight.

For example: using the Delphi (Delphi) method, the content of the feedback results of the survey to collate statistics, each an expert on financial, customer, internal business, innovation and learning four aspects of the results of paired comparison geometric mean Similarly, then from top to bottom to establish a part of layer 2 (financial, customer, internal business, innovation and learning) as the criterion, the corresponding structure of each index layer 3 Matrix .3) single-level sort of a general consistency test AHP is to determine the level of a single order to solve eigenvalue matrix A, find the largest eigenvalue ��max eigenvectors corresponding to W, normalized by some as an indicator of the sort weights. AHP to the fact the level of the prioritization of each factor weight is essentially a qualitative expression of the concept, does not need to pursue a higher accuracy. Therefore, to ease of use, can be applied to more simple and approximate algorithm --- plot method. sort of the consistency of single-level tests, need to calculate the same index CI: CI = (��max-n) / (n -1) (1) When the random consistency ratio CR = CI / RI <0.10 when (RI is average random consistency index, determine the order of 1-9 matrices, RI values were 0,0,0.58,0.90,1.12,1.24,1.32,1.41,1.45), that determine overall satisfaction with the consistency matrix, indicating that weight distribution is reasonable, otherwise need to adjust the comparison matrix.

Example: Layer 2 elements of the Balanced Scorecard (financial, customer, internal business, innovation and learning) relative to the overall goal of Level 1, the importance of weight calculation, first determine the matrix regularization of each column: b'ij = bij / ��mi = 1bij (i = 1,2 ... m) (2) B = b'ij m �� n = 0.208 0.120 0.266 0.2710.389 0.223 0.155 0.3730.325 0.597 0.414 0.2550.078 0.061 0.165 0.101 then the regularization Matrix by row after summation: W'i = ��nj = 1b'ij (j = 1,2 ... n) be W'1 = 0.865, W'2 = 1.14, W'3 = 1.591, W'4 = 0.405, the formation of vector W '= (W'1, W'2, ..., W'm) T; further normalization Wi = W'i / ��mi = 1W'i, (i = 1,2, ... m ) by W = (W1, W2, W3, W4) T = (0.216,0.285,0.398,0.101) T is the eigenvector of the request, 100WI as part of the Balanced Scorecard i-weight. Similarly, can be and can be easily integrated method to calculate the elements of the Balanced Scorecard Layer 3 Layer 2 relative to the corresponding elements of the weight W * I. Judgement final calculation the largest eigenvalue. by the AW = 1 0.536 0.641 2.6751.www.51lunwen. com866 1 0.374 3.6721.56 2.675 1 2.5100.374 0.272 0.398 1 0.2160.2850.3980.101 = 0.8941.2081.7510.418 so ��max = ��mi = 1 [(AW) i / Wi] m = 4.228 (3) consistency index calculated CI = (��max-n) / (n-1) = (4.228-4) / (4-1) = 0.076, look-up table is an average random consistency index RI = 1.12, and thus CR = CI / RI = 0.068 < 0.10, so the comparison matrix has satisfactory consistency .4) level and the consistency test levels of total ranking total ranking is the ranking result derived from a single weight coefficient according to the appropriate combination of composite theory, the lowest level in the final calculation of the index relative to the overall goal of the relative weight @ ij, about a target (layer 3) on the host side (layer 2) multiplied by the weight of the total target area (layer 1) the weight of the results. during the consistency inspection, if the levels of certain areas 2 and 3 levels of the corresponding factors of the consistency index for the CIi, the corresponding average random consistency index for the RIi, the 3-level random consistency ratio of total ranking: CR = ��ni = 1WiCIi/��ni = 1WiRIi (4) Similarly, when CR <0.10, the sort that the total level of satisfaction with the consistency of results, or need to re-adjust the values of the elements of comparison matrix.

3.3 Balanced Scorecard gray correlation weights of the determination of AHP in the establishment of judging matrix, just a single index value of the program were compared, without considering the linkages between indicators. These indexes within the index system is not independent of each other, they link exists between the relationship, in essence, is a gray relationship [6]. Therefore, in assessing the value of each index, based on gray relational theory of decision-making to corporate real index vector and the optimal index vector associated with the relative degree of viability as an evaluation criteria for corporate sustainability. Balanced Scorecard in the qualitative indicators (such as employee satisfaction, etc.) can be used for quantitative evaluation method processing. Assuming a relatively optimal solution is U0 = (X01, X02, X03, X04), the dimensionless after its U0 = (1,1,1,1), so the actual index value X and the optimal state X0 of the evaluation index U0 correlation coefficient between: ��ij = miniminj | fij-1 | + ��maximaxj | fij-1 | | fij-1 | + ��maximaxj | fij-1 | i = 1,2, ..., m; j = 1,2, ... , n (5) style (5): �� �� (0,1) for the resolution ratio, can be artificially determined, generally 0.5; for example, layer 2 internal factors operating in 5 under evaluation index layer 3, assume that the actual value of each index vector (0.842,38.5,0.04,0.09,0.05), according to the scale of the enterprise itself, in which case industry conditions and major competitors to determine the optimal index value of the case, assumed to be (0.93,40 , 0.01,0.091,0.01.) capacity utilization, technology and equipment and the cost of staff reduction rate and efficiency of these three indicators can be carried out according to the formula fij = Xij/X0ij dimensionless; return rate and the core backbone of the turnover of these two Cost-based indicators can be based on the formula fij = X0ij/Xij dimensionless, obtained after standardization of the evaluation index vector (0.905,0.963,0.250,1.000,0.200). (where: X ij the indicator that the audited actual business value; X0ij that the optimal value of the index Xij) from miniminj | fij-1 | = 0, maximaxj | fij-1 | = 0.8 and (6), take �� = 0.5, calculate the internal management evaluation under 5 correlation coefficient vector R3, (R31, R32, R33, R34) = (0.808,0.915,0.348,1.000,0.333). Similarly, the financial aspects can be calculated, customers, innovation and learning under the correlation coefficient of each index vectors R1, R2 and R4. gray correlation is calculated can be expressed as: ��'i = ��nj = 1wij��ij i = 1,2, ..., m; j = 1,2, ..., n (6)
3.2 calculated based on the Layer 3 elements relative to the layer 2 element of the corresponding weight vector W * i and 2, under the various indicators of Element correlation coefficient vector Ri, using (6) are all calculated elements in layer 2 gray correlation degree, for example, the internal operating in the gray relational grade ��'3 = ��5j = 1w3jR3j = 29.691. Similarly, we can calculate the financial, customer, innovation and learning in three areas of the gray relational grade vector, by �� '= (��'1, ��'2, ��'3, ��'4) = (0.551,0.500,0.746,0.652).

3.4 The audit of the Sustainable Management of the weight distribution of the results of the method used to consider the respective roles of synthetic indicators of size or level of decision-makers of their importance in the evaluation indicators are generally recognized by logic synthesis of the weighted method. Use this method from Next to the above parameters on the correlation of gray and gradually integrated synthesis, is the business of the Sustainable Management of quantitative findings ��, �� greater, indicating that the sustainable management of the audited company is close to its optimal state state more sustainable stronger operational capabilities. Its expression is: �� = ��'W (7) level and consistency of the total order after passing inspection, according to equation (7) calculated by the Sustainable Management of the trial enterprises quantitative results �� = (0.551 , 0.500,0.746,0.652) (0.216,0.285,0.398,0.101) T = 62.436.4 conclusion in the market increasingly competitive global economy, companies face enormous risks and uncertainties, and accordingly, the audit department to assume heavier tasks and more high risk. the balanced scorecard performance evaluation of this new system applied to the business of the Sustainable Management of the audit, the break is limited to financial data of the original model, the use of AHP audit evaluation method to solve the multi-tiered, decision-making system to solve the gray evaluation of the linkages between, you can exclude the data better, "gray" ingredients that can effectively assess the sustainable management capability, audit and business own management go a long way.

However, this method Application in practice will encounter some difficulties, for example, indicators identified in the audit and investigate the relative importance of each indicator there are subjective factors, there may be problems auditor independence; different treatment dimensionless caused the problem than the audit findings and other issues not to be further explored and resolved.

References:
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[3] Peter F Drucker. Corporate Performance Measurement [M]. Li Yan, Jiang Ya translation. Beijing: China Renmin University Press, 1999.

[4] Jing Yu S, Chen Po. Enterprise Application of the Balanced Scorecard performance measurement in the [J]. Shanghai Accounting .2001, (10) :51-53
[5] Yang Limei, Ye Qiumei. AHP in Customer Satisfaction Evaluation [J]. Inner quality and technical supervision .2002, (4) :19-21
[6] Song Jiupeng, David Tung, high national security. Based on AHP and the gray of the program decision-making model [J]. Southwest Jiaotong University, 2002,37 (4) :463-466 Links to Research Papers Download http : / / www.hi138.com