The Company's Control & Audit Trail, Discrepancies in the Budget, Whom to Circulate the Budget - Case Study Example

The paper “The Company’s Control & Audit Trail, Discrepancies in the Budget, Whom to Circulate the Budget” is an informative example of a case study on finance & accounting. XYZ needs to ensure that steps are taken so that the different departments work according to the allocated budgets for which it is important to distribute the budgeted report to the different departments so that they can work in the stated limits. The details are:

Whom to circulate the budget
XYZ needs to ensure that a copy of the budget is provided to all the departments of the organization. This will help them to understand the allocated funds for the various functions and the various department needs to plan out their working based on the allocated funds. This makes it important that the budget is distributed to the following

General Manager: Amanda Booth should be provided with a copy so that the manager is able to understand the spending pattern in the near future and can plan the working of the organization accordingly.

Sales Manager: Terry White so that the manager understands the allocated financials for marketing, promotions, advertising and other activities that will help the organization to sell their products and services. The manager should also look into the allotted salary and have employees based on it so that cost stays within control.

Accountant: should be provided with a copy so that the financials can be arranged at the same time the expenses made under various heads be recorded for financial purposes.

Management: so that they understand the future plans of XYZ and are able to make changes or improve the budgeted planned expenditure for the betterment & development of the company.

Delegation of responsibility
The different departments like the purchases, sales, human resources, marketing, and others have to ensure that they delegate the responsibility and provide the required authority to the employees of their respective departments to fulfill their duties. While passing on the information the head of the departments must ensure that all the concerned employees are well informed about the budget and steps taken so that they perform within the stated limits.

Reporting
The employees of each department have to report to the head of their respective departments. For example, the sales team should report to the sales manager. The employees should bring forward all important information relating to the budget and present before the head of the department the areas where there are discrepancies. The head of the department should look towards reducing the discrepancies and should be done on a regular basis like weekly or fortnightly.

The head of the respective department should report to the general manager or the budget manager and bring before them the discrepancies that are there in the budget. The head of the department should ensure that all information is brought to their notice and if changes are required in the budget it should be consulted before incurring it

The accountant and the general manager needs to report to the top management and should obtain their permission for any changes made in the budget. This will ensure consistency and help to complete the project on time.