The SSCs should post the management issues they identify on Xinsheng Community Footnote 1 or publish them in Improvement. If we want everyone to follow processes and systems in their work, we have to sell the idea and convince people. 030) 1.2 Oversight by Accounting: Comprehensive Oversight Throughout All Processes (Ren Zhengfei: Speech at a Briefing on Improvements and Future Planning for Carrier and Enterprise Regional Organization Transformation, Huawei Executive Office Speech No. Auditing is oversight after things have happened. Field operations services and shared services centers (SSCs) are divisions of these three types of authority, not centers of authority. Accounting is completely separate from business management organizations. Accounting management authority is about keeping centralized records, with the motto of “answering only to the truth, not to customers, business personnel, or managers”. Instead, it should be about providing fast and flexible services, so that representative offices can use funds flexibly. Of these three, treasury management authority is not about managing, blocking, and exerting pressure. Second, we must never transfer our central authority over treasury, accounting, and auditing to lower levels. We should also move our oversight function forward while delegating the business decision-making authority to the field. First, oversight-oriented subsidiary boards deal with the oversight of internal and external compliance and this is not procedure-based. Two things about oversight need to be distinguished. (Ren Zhengfei: Minutes of the Meeting with Staff of the Romania Accounting SSC, Huawei Executive Office Speech No. So it’s still possible that accurate financial data may not truly reflect business on the ground. However, if business data is unreliable, your assumptions won’t hold. This is based on your assumptions that business data is reliable and that the approvers are responsible. If water in the upstream is not polluted, then why won’t business personnel drink it? I’ve learned that today’s financial data is much more accurate and up-to-date. Otherwise, how can you ensure that the data is accurate? If the upstream unit that provides financial data alleges water (meaning the financial data) is not polluted, will you agree to drink the water? What if the water has been contaminated? That’s why we require our accounting personnel to remain independent when it comes to understanding data. Even when business personnel tell you there is no need to check the data, saying that they have indeed spent 3000 US dollars. (Meng Wanzhou: Minutes of a Meeting with Accounting Managers, 2011)Īccounting must operate independently and ensure data is accurate and reliable. To ensure accuracy of financial data, you not only need to do calculations, but also need to ensure that financial data truly reflects business on the ground. The revenue recognition issue of the China Region indicated that Accounting has failed to fulfill its oversight responsibility. Ren has stressed that Accounting does more than just provide services it also takes on an oversight responsibility. These errors are not incorrect financial data, but errors caused by improper business operations. Through approaches such as communication, asking for instructions, and reporting, Accounting helps us reduce errors. This sieve lets compliant, well-grounded business activities pass through, but blocks those that are non-compliant and erroneous. Accounting’s mode of vertical operations is like a sieve within Huawei’s internal operating mechanism. Its oversight responsibility even outweighs its service function. Accounting should make it clear to business departments that it does more than just provide services – it also takes on an oversight responsibility. If there are abnormal fluctuations and discrepancies in the data provided by business personnel, accounting personnel should identify them and ask more questions or require business personnel to offer more supporting information. Accounting personnel should be fully aware of the delivery cost of a project. What does oversight mean? Let me give you an example. 1.1 Roles of Accounting: Service and Oversight, with the Latter Being More Importantįor years, we have kept Accounting independent from the top down, hoping that it would serve as a dam, overseeing business activities and applying checks and balances.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |