| Summary: | 碩士 === 國立臺北大學 === 企業管理學系 === 96 === ABSTRACT
An Operational Audit Innovation Study of Cross-Functional Team on Subsidiary Companies, Using Electronic Industry as an Example
by
Hsieh, Yen-Hua
June 2008
ADVISOR(S): Dr. Goo, Yeong-Jia
DEPARTMENT: DEPARTMENT OF BUSINESS ADMINISTRATION
MAJOR：BUSINESS ADMINISTRATION
DEGREE：MASTER OF BUSINESS ADMINISTRATION
To respond to the corporation scale increasing into a worldwide company, the quantity and amount of the investment (for subsidiaries) have been increasing sharply, too. Such situations may raise the operation risk to the corporation. To efficiently manage the risk, it is important to set up a series management system to the subsidiary especially in internal audit system. But most of the IPO companies in Taiwan the manpower of audit units are insufficient. When parent companies have to audit their subsidiaries, due to the limit of resources (manpower, professional skills) they can only select the items that are familiar to the individuals in auditing. In such case, the activities of auditing are not based on the results of risk evaluation and will decline the values of such audit activities. Since the concept of cross-functional team brought up, the cross-functional team is widely applied to the development of new products, quality control, R&D, management and sales teams. Nevertheless, whether the cross-functional team can also be adapted to the internal auditing or not, there are few studies being discussed, that motivated me to do the research.
The twelve samples of this research we apply all in electronic companies which pay-in capitals are over NTD 200M, the survey adopts deeply interview to analyze the following sectors:
1. What are the difficulties and solutions when they audit subsidiaries?
2. What should be the best practice when adopting the cross-functional team in operating audit on subsidiaries?
3. What are the advantages and disadvantages when adopting the cross-functional team in operating audit on subsidiaries?
4. What are the key successful factors when adopting the cross-functional team in operating audit on subsidiaries?
5. What will it affect the functions of internal auditing when adopting the cross-functional team in operating audit on subsidiaries?
6. What will it affect the performance of internal auditing when adopting the cross-functional team in operating audit on subsidiaries?
Conclusions:
1. The most difficult problem the sampled companies suffer when auditing the subsidiary is lack of manpower, 60% of the sampled companies think the application of Multi-Function-Team will resolve this difficulty.
2. When adopting the cross-functional team in operating audit on subsidiaries, the best practice is: in first to have mutual consciousness with high-level management, select the qualify auditors, communicate auditing targets and points, and review previous auditing reports, when in the spot auditing it is important in team communications and discoveries confirmed, and it is necessary to reconfirm the discoveries when the audit report (draft) is presented. In the end the auditors present findings and suggestions and have high-level management of the audited units join the close meeting to get the improving commitments of all the discrepancies presented in the conclusion meeting from audited subsidiaries.
3. When adopting the cross-functional team in operating audit on subsidiaries the advantages might be:(1) to expand the depth and width of profession technology, (2) to increase the efficiency of internal auditing, (3) to mend the insufficient manpower of internal audit units, and the disadvantages should be:(1) it is hard to manage such a team, the special training should be given to team leaders, (2) multi-background is the cause of mutual-conflict in the expectation and necessity which will decrease the productivity and the quality of decision, (3)multi-management against the leading law that is unique employee report to unique manager may cause the conflict in organization.
4. When adopting the cross-functional team in operating audit on subsidiaries the first four successful factors are：the supports of high-level managers, offer the cross-functional team a clarified and uniform goal , the abilities of leading and the communicating of the team leaders and the qualify members to be recruited ( with adapted skills)
5. When adopting the cross-functional team in operating audit on subsidiaries will raise the functions of internal auditing in several ways, (such as extremely independent, professional skills, human relationship and communication and the support and deem of the high-level managements) which will be positive and significant.
6. When adopting the cross-functional team in operating audit on subsidiaries will raise the efficiency of internal auditing in several ways, (such as the satisfaction of management, the satisfaction of the audited units, the suggestions which are presented by the auditing units incur the cost saving and organization risks decreased) which will be positive and significant.
Discovery: Therefore the cross-functional team in operating audit on subsidiaries is workable and will increase the values of internal auditing. This paper suggests to adopt the cross-functional team in operating audit on subsidiaries to all the enterprises for nowadays circumstances with restricted resources and deem risk management a big project.
Key-word：internal auditing, cross-functional team
|
|---|
