1988: Back to the human world for a few years

Chapter 428 Off-site Data Audit

In the early morning, the sun did not rise today. Although there was a dazzling white in the eastern sky, it was far less hot than in the past.

In the small courtyard.

Following a faint wail, Mu Liya, whose body was covered in a light red, took a few deep breaths, then transformed into Zhao Min and bit a man's shoulder bitterly.

"You bastard! You have no sense at all. It wasn't enough that you bullied me last night, but now you're still messing around so early in the morning!"

"If you do this again next time, I, I, I...I will move back home, and don't even think about touching me before we get married!"

Miss Mu looked at the licentious man beside her with gnashing teeth. She felt ashamed and angry when she thought about how she was dragged by this bastard to do morning exercises for more than half an hour before she woke up.

This bastard knows about my sensitive constitution.

There is less than an hour left before work starts. When the time comes, she will go to the company with a rosy face. How will she face people?
Yang Mo rubbed his shoulders with a grin, and just smiled evilly in response to Miss Mu's tearful threat.

If a man has such a beauty lying next to him, who can control himself?
Besides, your man is so energetic, which is a blessing that many people would wish for. If others know about it, they will only be envious, okay!

Comrade Yaer, it is because you have just become a new wife, and you are not used to it physically and psychologically all at once. After a period of time, I am afraid you will wish to have this experience every day!

Miss Mu couldn't bear it anymore when she saw the lewd smile on his face. She quickly got out of bed with her still trembling body, washed up as quickly as possible, and used the leftovers from last night to make two bowls of steaming beef noodles in clear soup and brought them over.

"Hey, Yang Mo, I realized that I really underestimated Chief He before... Your drilling company is really full of hidden talents. Chief He has only been the head of the finance department for a few months, but he feels much more capable than our Minister Wang of Dahua. Even the old finance staff in the command center can't explain some issues as thoroughly as he does... After meeting him yesterday, I really benefited a lot from him!"

Mu Liya had a pretty face with a blush that had not yet faded. She picked up the noodles and blew on them in a very gentle manner, while speaking with some emotion.

Are you a drilling company?

Yang Mo looked at her with amusement, then mischievously put the piece of ox tail that he didn't like to eat into her bowl: "The living environment faced by the drilling company is much worse than that of the headquarters. If you don't have some skills, you are not qualified to be valued by your Uncle Wang... What did Lao He teach you yesterday?"

When Mu Liya heard Yang Mo remind her that He Yongyi was once Wang Yinuo's confidant, and that coming to Momo Baitou to serve as acting section chief was nothing more than finding a safe haven, the smile in her eyes became even brighter.

After thinking about it, she suddenly tilted her head and looked at Yang Mo: "Have you heard of the three factors of cheating?"

Yang Mo couldn't help but roll his eyes: "Even if your man is useless, he should at least know a little about risk control... He doesn't even know the Fraud Triangle Theory, which is not even an introduction?"

The so-called "fraud triangle theory" can actually be summed up in one sentence: the occurrence of any fraudulent behavior is inseparable from the three elements of pressure, opportunity and excuse, and these three elements are indispensable.

Simply put, "pressure" is the motivation for cheaters' behavior, that is, a kind of pressure that stimulates individuals to commit fraud for their own benefit. It can be roughly divided into: economic pressure, pressure from bad habits, work-related pressure and other pressure.

"Opportunity" refers to the time when fraud can be carried out or organized and covered up without being discovered or escaping punishment. The reason why fraudsters can get this opportunity must be because the company is lacking in some aspects, allowing fraudsters to seize the loophole. The main situations are: the company lacks internal control to detect organizational fraud, cannot judge the quality of work, lacks punishment measures, information asymmetry, insufficient capabilities and imperfect systems.

An "excuse" is a reason that the cheater uses to convince himself to commit fraud, which is self-rationalization, so that the cheating behavior is consistent with his own moral concepts and behavioral norms. Regardless of whether this reason is reasonable or not, it is the internal motivation that prompts him to commit fraud.

In short, although the fraud triangle theory is superficial, it is like 1+1=2 in mathematics. It can analyze and explain the motives of almost all fraudulent behaviors, and observe and deduce the clues of most fraudulent behaviors. It is definitely a compulsory course for all internal control/risk control/audit practitioners.

Seeing this, Mu Liya nodded with a smile: "Although everyone knows the three factors of fraud, how to transform them into work ideas is a very demanding thing... Obviously, Section Chief He has a very unique perspective in this area, and he is able to simplify things with ease."

"Section Chief He told me that all the previous internal control training and internal control documents in the system have told us that management fraud needs to be analyzed from the objective situation, external conditions, and internal conditions to find the source of risk, and then look at the risk conversion conditions, etc."

"But as far as his experience is concerned, in the final analysis, project management commits fraud because of the imbalance between benefits and risks... When project management finds that the benefits of fraud far outweigh the losses caused by being discovered, they will create various conditions to take risks."

At this point, Mu Liya glared at Yang Mo, then took a bite of the ox tail that Yang Mo refused to eat and said, "Although Section Chief He is not the only one who discovered this problem, it is very unusual that a section chief who lives in a remote corner and has no family background can realize this problem."

"More importantly, although there are many people who are aware of this problem, they can only point out the problem. As for how to break the impasse and resolve it, no one I know can come up with a reliable solution."

"But Section Chief He is different. He is a business backbone with a background in finance, and he is now teaching a stupid student like me... His professional background and his current role determine that since he took the initiative to mention this issue, he must have corresponding ideas and solutions to solve it."

After cleaning the oxtail bone, Miss Mu tore off a piece of toilet paper, gently wrapped the bone, and threw it into the trash can. "Although Section Chief He said before that he would only provide ideas and plans on internal control from a financial perspective, and these plans would definitely not be able to eliminate the occurrence of group fraud among project executives from the root, but even so, it is still very remarkable!"

Yang Mo nodded without comment, then looked at his woman with interest: "What is Lao He's specific idea?"

Mu Liya spread her hands and said, "I didn't elaborate yesterday. What Section Chief He meant was that it's useless to just talk about theory. This kind of thing still needs to be practiced and taught at the same time, so that you can gain some understanding... There is no possibility of conquering the world with one model in this world. Rigidly copying and pasting will only do harm. It is still necessary to master the tricks in practical teaching and apply them flexibly."

Yang Mo laughed: "It seems that after being a financial BP for half a year, Lao He has gradually adapted to this role and has changed a lot... Comrade Yaer, you must cherish this opportunity!"

Mu Liya looked at Yang Mo, who was still somewhat calm, and nodded slightly: "Yeah!"

………………

10:20
In the reception area of ​​Dahua Company temporarily requisitioned by a minister and vice president named Mu, more than a dozen staff members temporarily transferred from the Finance Department were concentrating on dealing with the thick stack of documents in front of them. The tense atmosphere, which was like that before an exam, made all the staff members passing by become cautious.

To be honest, no one dares to mess with Yang Mo in Dahua Company now, and Miss Mu's status in the company has also risen. Otherwise, in a top-notch key department like the Finance Department, who would transfer so many people to do chores for you when there are so many jobs available?

But don’t forget that their minister Ma Bin also holds the title of vice president!
In a small meeting room near the reception area, He Yongyi looked at the busy staff through the open door with a thoughtful expression.

"Chief Mu, although we are only teaching by doing, and not following the formal work process, and the sample we selected is just an ordinary tertiary industry unit under Dahua Company, this is an audit after all. I think it would be better to invite colleagues from your Dahua Company's Audit Department and Supervisory Committee to participate... If all of them are from the Finance Department, it would still be a bit inappropriate."

He Yongyi's tone was sincere and he seemed to have a strong sense of professional ethics, but other than that, it was unclear what he was thinking.

If one wants to do a good job of internal control from a financial perspective, then auditing is definitely a core link that cannot be avoided. So according to He Yongyi's idea, since Yang Mo has instructed that he must teach Miss Mu some knowledge without reservation, then starting with the actual operation of auditing is undoubtedly the most convenient and efficient way.

However, he did not expect that Miss Mu would cause such a big fuss for him. Not only were all the financial statements of the tertiary industry unit for the past five years moved here, but more than ten financial personnel were transferred over at once to accompany her in the drill...The most interesting thing was that no one from Dahua Company's Audit Department and Supervisory Committee showed up.

This made him smell a subtle scent.

Out of caution, he kindly gave a reminder... Even though Yang Mo has now reached a level where he can call the shots in Dahua Company, as his fiancée, it is better for you not to give others a handle on some things.

Upon hearing this, Mu Liya just smiled softly, then raised the stack of papers in her hand, and said in a tone full of admiration: "Chief He, is this the 'Risk Control Point Assessment Form' that you designed specifically for the 'Off-site Data Audit' link?"

"I have to say that Mr. Wang's disapproval of your continued position as the head of the Finance Department is definitely a huge loss for the Drilling Company... This is the first time in my career that I have seen such a detailed, targeted, and reasonable risk control point assessment form with detailed weighting!"

Muriya's praise was definitely not out of personal compliments, but she was truly amazed.

Everyone knows that "prevention is better than cure", but it has never been an easy task to detect signs in advance, nip them in the bud in time, and thus minimize the company's losses.

Therefore, a convenient, scientific and meticulous financial risk control tool becomes extremely important in this matter.

He Yongyi smiled calmly upon hearing this: "Chief Yang once said that 70% of the first contacts between strangers are lies; and the only thing in this world that won't lie is mathematics... So, instead of taking the risk of alerting the enemy and going through the trouble of interviewing people right away, it is better to use some math and financial tricks to get a rough outline of the situation from point to surface."

Is mathematics the only thing in this world that never lies?

Math, not numbers?
Although after more than a year of contact with events, she felt that Yang Mo was actually a guy who was extremely pessimistic in his bones, she still could not have imagined that such words would come out of her man's mouth.

Quickly calming herself down, Mu Liya smiled and nodded, then turned her attention back to the "Risk Control Point Assessment Form", which was very common in later generations but was enough to bring people great surprises at the moment.

………………

1. Ensure all transactions are authorized correctly

Difficulty of implementation: Moderate
Company risk assessment: 5
[Guiding Ideology]: The company's procurement system has clear regulations on application, approval and confirmation in each link of the procurement process.

In the construction of the procurement system, these normative systems should be fully implemented in the operation process of the entire system and relevant departments. Since the company's procurement work currently relies on the procurement system, in order to ensure this standardization, the audit department needs to check the historical transaction data to ensure and verify whether there are any irregularities or even fraud.

………………

2. Order split inspection

Difficulty of implementation: Difficult

Company risk assessment: 5
[Guiding ideology]: The act of splitting orders is generally to avoid the more complicated processes required for large purchase orders.

It should be noted that some splitting behaviors are actually reasonable illegal splitting behaviors that are generated to adapt to unreasonable procurement amount settings in the procurement system. Usually, personnel at all levels in relevant departments are very clear about this.

For example, for some high-value goods, any order, even the smallest amount, is higher than the amount specified for large purchases in the system. This requires each order to go through a more complicated process with the participation of a superior. In order to avoid this trouble, superiors tacitly allow such orders to be split up at their own discretion within a certain amount. However, the existence of such reasonable order splitting behavior will cover up other suspected fraudulent order splitting behaviors, such as splitting the same large order into several small orders in order to artificially expand one's own approval authority.

The audit department needs to attach great importance to the behavior of splitting orders and put forward reasonable audit suggestions. For system setting issues, clear adjustment suggestions need to be made and illegal order splitting behavior needs to be strictly investigated and dealt with.

………………

3. Overpayment due to price hikes

Difficulty of implementation: Moderate
Company risk assessment: 5
[Guiding ideology]: In the procurement process, confirmation of reasonable price is a very critical issue.

During the procurement bidding process, price comparisons will be used to control the situation. However, if suppliers work together to raise prices, the procurement price will still be too high.

In the subsequent supply process, the prices of some long-term supply goods are allowed to have reasonable price fluctuations. At this time, how to reasonably judge the rationality of the increase or decrease or maintenance of the purchase price based on the normal fluctuation of market prices is a relatively important and difficult issue.

The key point of this control link is that the audit department needs to establish long-term market price tracking for important purchased goods, and use this as a standard to continuously monitor the purchase price fluctuations of these goods. Special attention should be paid to very unreasonable transaction behaviors. For example, when the market price rises slightly, the purchase price of goods takes the opportunity to increase significantly. This unreasonable behavior may hide signs of fraud and requires the attention of the audit department.

………………

4. Overpayment due to discrepancies between invoice and purchase order

Difficulty of implementation: Moderate
Company risk assessment: 5
[Guiding ideology]: Usually the invoice amount and the purchase order amount must be consistent. Any inconsistent records must be carefully identified and judged.

There may be various reasonable or unreasonable reasons for inconsistencies. If the invoice amount is less than the order amount, the risk is generally smaller. It may be an advance payment or part of the order amount payable.

At this time, it is necessary to add up the amounts of all installments before making a judgment. Sometimes, it is because the purchased goods have quality problems, but the goods cannot be replenished in the short term, so the amount of the problematic goods is deducted when paying, resulting in a smaller amount. Sometimes, it is because the preferential discount ratio given by the supplier is used during settlement, and the order amount is based on the supplier's standard price, resulting in inconsistency.
Therefore, these issues generally require the audit department to handle them in detail to help the procurement department better regulate and improve its processes and systems. If the invoice amount is higher than the purchase order amount, the risk is relatively high. It may be a work error or non-compliant payment. For example, the balance of another order from the same supplier and the payment of the new order are completed in one payment. Although the one-time payment process is reduced, it still causes confusion to the entire procurement process.

In short, the discrepancy between the invoice amount and the purchase order is not a simple problem. It involves various work errors, process and system problems, which require the audit department to carefully and patiently identify and handle them one by one.

………………

5. Repeated Payments

Difficulty of implementation: Moderate
Company risk assessment: 5
【Guiding ideology】: Omitted (to avoid accusations that I have exaggerated the word count)
6. Supplier key information integrity specifications

Difficulty of implementation: Easy

Company risk assessment: 4
【Guiding ideology】：Omitted

7. Analysis of unreasonable batch purchases of goods and suspected order splitting

Difficulty of implementation: Moderate
Company risk assessment: 3
【Guiding ideology】：Omitted

8. Analysis of the receipt date of purchased goods being earlier than the purchase order application date

Difficulty of implementation: Easy

Company risk assessment: 4
【Guiding ideology】：Omitted

9. Analysis on the rationality of the purchase amount of goods procurement suppliers

Difficulty of implementation: Difficult

Company risk assessment: 4
【Guiding ideology】：Omitted

10. Analysis of fluctuations in commodity purchase prices

Difficulty of implementation: Difficult

Company risk assessment: 4
【Guiding ideology】：Omitted

11. Analysis of consistency between purchase order quantity and purchase application quantity

Difficulty of implementation: Easy

Company risk assessment: 3
【Guiding ideology】：Omitted

12. Analysis on the rationality of the proportion of purchased goods

Difficulty of implementation: Moderate
Company risk assessment: 3
【Guiding ideology】：Omitted

13. Analysis of single-source procurement of goods
Difficulty of implementation: Easy

【Guiding ideology】：Omitted

14. The same material has the highest purchase quantity when the purchase price is high.

Difficulty of implementation: Moderate
Company risk assessment: 2
【Guiding ideology】：Omitted

15. The payment date of the goods is earlier than the acceptance date of the goods
Difficulty of implementation: Easy

Company risk assessment: 3
【Guiding ideology】：Omitted

16. Analysis of accounts payable that have not been paid for more than 365 days

Difficulty of implementation: Easy

Company risk assessment: 3
【Guiding ideology】：Omitted

17. Review of qualified supplier qualifications (whether the three certificates are complete)
Difficulty of implementation: Easy

Company risk assessment: 2
【Guiding ideology】：Omitted

18. Analysis of the number and amount of emergency purchases by procurement-related personnel within three months
Difficulty of implementation: Moderate
Company risk assessment: 4
【Guiding ideology】：Omitted

19. Repeated purchase analysis: the number of purchases of a specific item is more than three times within a month

Difficulty of implementation: Easy

Company risk assessment: 1
【Guiding ideology】：Omitted

........................

Although there are as many as 19 risk control points in this table, if you really want to condense it, ten sheets of paper are basically enough.

The reason why it becomes a very thick stack of documents is mainly because behind each risk control point, there is a long paragraph of "guiding ideology" written densely;
At the same time, behind each risk point, there is actually a column specifically used to describe the warning line standards.

Of course, the actual situation of each company is different, so the warning line standards are also different. Therefore, for this column, auditors need to customize the standards based on their experience and actual situation.

Take the first risk control point, “Ensure that all transactions are authorized correctly”, for example. The example He Yongyi gave is:

Warning line standard:
1) Purchases with a value greater than RMB 2000 must be approved by the relevant authorized person
2) Purchases with an amount greater than RMB 2000 must be approved by the relevant authorized person, and the authorization level must be greater than or equal to the team leader level.

3) The purchase applicant and the authorizer cannot be the same person.

It is obvious that He Yongyi is using a method similar to a "fool's manual" to describe the standards and main considerations of each risk control point... This is probably a habit he developed during his tenure as the acting section chief of Momo Baitou. After all, the financial personnel in the department's shared accounting center are all incompetent rookies in his evaluation criteria.

However, the advantages of this way of expression are obvious. Even people who do not understand financial knowledge can easily tell at which link the problem may lie and the scope behind it through the final evaluation score after seeing this table...As long as you have a little management experience, you will find that these 19 risk control points actually form an interactive relationship. Even if the data of a single link is concealed tightly, problems can be easily detected from other links.

Once the outline of the entire risk is roughly described, what remains is to send personnel to collect evidence and conduct interviews in a targeted manner... Of course, if you have other considerations, you can choose not to collect evidence or conduct interviews.

………………

"Chief He... please take a look."

Miss Mu took the "Risk Control Point Assessment Form" submitted by a financial staff member, read it carefully, and after a moment of contemplation, handed it to He Yongyi.

Since these staff members in the Finance Department of Dahua Company were also exposed to this thing for the first time, and today was just a teaching session, considering the issues of proficiency and efficiency, these 19 risk control points were separated and assigned to the staff members for evaluation. Therefore, each form that was sent in actually only had an evaluation and analysis of one point.

Don’t think that it is easy for one person to be responsible for the assessment of only one risk control point. Those who have done auditing should know that this is a job that is even more difficult than writing code. If the tertiary industry unit used as a "teaching case" today was not small in scale and its business dealings with various units were not complicated, even if only one risk control point needed to be assessed, it would definitely be enough for these people to work hard for a whole day.

And the meaning of Miss Mu handing these numbered "Risk Control Point Assessment Forms" to He Yongyi was very clear... As a teacher, you should take a look and see whether the warning line standards of these risk control points are reasonable, and whether the assessed scores and related reasons are objective.

He Yongyi took the evaluation form with a smile and nodded, expressing his recognition of the capabilities of the staff in the Finance Department of Dahua Company.

To be fair, the professional qualities of Dahua Company's financial staff are indeed significantly better than those rookies in the Momobaitou Shared Accounting Center... You know, from the moment Dahua Company began to prepare for its establishment, the Dongying Command has attached great importance to this second-level unit, and elites from various fields have been trying their best to fill it in. Therefore, as a first-class core department, these staff members of the Finance Department are really impeccable in terms of their professional qualities.

Therefore, even if the warning line standards for some risk control points are not very objective, it is already rare for people who are doing this job for the first time.

Besides, today was just a teaching session, not a formal audit, so there was no need to be too fussy. Therefore, as long as it was not too outrageous, He Yongyi nodded in approval.

He knew very well that for someone at Miss Mu's level, it didn't matter how accurate the error value of the final score of the risk control point assessment form in front of her would be. What mattered was whether the other party could use this small tool to gain insight into the invisible rules within the company and whether it could help her develop some internal control system construction thinking.

"Chief Mu, my colleagues at Dahua are doing a great job... How about we stop our discussion here today?"

"Tomorrow, Chief Mu might as well have someone select a member unit of the China Council for the Promotion of Foreign Trade as the teaching material. We will consolidate the content of this section and then expand on it."

“Enterprises engaged in import and export trade have slightly different risk control points from those engaged in domestic business, especially those engaged in overseas business of their own brands… Due to the differences in laws in different countries, the abnormal performance of some risk control points is often easily misunderstood by auditors;”

"I personally think that off-site data auditing is a good internal control and business management tool, but as a manager, you should try to avoid misjudgment as much as possible... Auditing is a double-edged sword. If misjudgment leads to a blow to the work enthusiasm of subordinate units, then the gain will not outweigh the loss."

He Yongyi looked at his watch. It was almost four o'clock in the afternoon. After all, he was still the acting section chief and financial BP of Mo Mo Bai Tou. There were many things to deal with in the department, so he planned to get up and say goodbye.

Unexpectedly, Miss Mu just looked at him with a smile: "Chief He, thank you for your kindness, but everyone learns in a slightly different way. Today's off-site data audit teaching has really benefited me a lot, so...how about we continue to work hard tomorrow and complete the follow-up audit teaching of this case?"

At this point, Miss Mu paused for a moment and said, "To be honest, when I selected this tertiary industry unit as a teaching case today, I also had people carry out preliminary evidence collection work at the same time... When the time comes, I may have to trouble Section Chief He to combine today's risk control point assessment form to carry out the next step of on-site teaching."

!!!

He Yongyi's heart suddenly trembled.

Early evidence collection?

Will we continue the practical teaching on this “case” tomorrow?
This is……?
Thinking of all the slightly unusual situations today, He Yongyi's original suspicions were vaguely confirmed, and he couldn't help but sigh in his heart.

Sure enough, it’s not like one family doesn’t want to enter the same house!
Section Chief Yang's fiancée is not an easy person to deal with after all!

However, since Wang Yinuo regarded He Yongyi as a confidant who was trained as a key figure, He Yongyi was naturally not a rookie who couldn't even hide his thoughts on his face. After a slight pause, he smiled and nodded gently like a private school teacher who didn't care about anything outside.

"it is good!"

(End of this chapter)