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Publicly traded companies would benefit greatly from management system structures as, today, due to corporate corruption and investor fraud, companies are required to report on their internal controls, as well as financial data.
The requirements for financial reporting by the Canadian Securities Administrators and the U.S. Securities Commission (SEC) for Sarbanes- Oxley for review of internal controls can be supported by ISO 9001 implementation and audits.
The management system structure can provide objective evidence, from identification of risks, strategic planning, operational controls, and procedures and practices for managing customer orders to the purchasing of materials, processing of orders, production controls, and monitoring. This may be a cost-effective way to meet the financial reporting requirements.
A management system structure outlines the controlled environment that is crucial for the credibility of financial information. Documentation is important to provide the evidence and assessment of effective internal controls. As a CEO and CFO, a management system meeting international standards provides the operational control and documented information to demonstrate the activities undertaken for these controls if tied to related financial activities.
This would require a team effort to include input from accounting and from those involved with your finances to look at the details related to invoicing and accounts receivable, as well as customer terms, credit limits, inventory transactions, etc.
In addition, an international management system structure provides support for due diligence related to civil liability. Earlier in the book, I outlined a concern related to the grey tsunami – employees leaving due to retirement – and whether their know-how is captured in documented information so that operational controls will not be lost.
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