BPA is a well-developed value added approach which assists the management in achieving their business goals. Following are the key components:
> Assessing the risk faced by the client that could impact the financial health, evaluating the clients' internal controls for managing the risks and planning the nature, extent and timing of our reviews (i.e. determining control and substantive tests to be carried out). > Conducting comprehensive tests to ensure: • The effective functioning of internal control systems. • Adherence to policies and procedures established by the management. • Business is moving in the right direction for the common corporate goals and objectives. Every business action is taken towards achieving these goals and objectives. • Evaluate / suggest business actions, by performing feasibility and profitability reviews. • Evaluating results. • Communicating test results to the client in the manner that meets their expectations. • Recommending corrective actions. A Review of Business Processes would cover some of the following areas: • System for planning and monitoring of cash flow • Evaluation of capital expenditure proposals • Yield V/s Consumption Raw material • Raw material Sourcing • Wastage control Product costing • Product costing • endors development • Working capital • Delivery performance-products/Services • Inventory level • Analyzing pricing strategies • Media costs • Collection / receivable management • Reliability and integrity of data • Invoicing procedure Procuring for bill • Procuring for bill passing